Effectiveness of Digital Music Platforms ' Social Media Interaction On Advertising Trust Using Cognitive Aspects

Jurnal Manajemen dan Bisnis, Volume 22, No 1 (March 2023)
Effectiveness of digital music platforms’ social media

interaction on advertising trust using cognitive aspects
Alviana Aslama Anantia, Yolanda Masnita, Kurniawati
Fakultas Ekonomi dan Bisnis, Universitas Trisakti, Jakarta, Indonesia
Corresponding author: Alviana Aslama Anantia, 122012101008@std.trisakti.ac.id
Received: August 4th 2022; Accepted: January 13th 2023; Published: March 21st
2023
DOI: http://dx.doi.org/10.24123/jmb.v22i1.624
Abstract
The COVID-19 pandemic-related economic crisis made many firms to switch their
advertising strategy to digital media, with social media being one of the most
popular choices due to its lower cost. As a business with rapid growth and being
the most popular form of entertainment among internet users, digital music
platforms is no exception. Regarding the current phenomenon, it is unknown at
this time whether social media marketing is one of the numerous crucial variables
causing this service's expansion. Therefore, this research seek to reveal the
impact of social media interaction towards advertising trust of digital music
platform through knowledge and affection as the cognitive aspects used. This
research conducted on a quantitative method with data collection using
questionnaires (Google Form), collected from 190 respondents in Jabodetabek
whose having subscriptions for at least on one of digital music platform available
in Indonesia. The data is analyzed using Partial Least Squares (PLS). The result
shows that social media interaction has a significant impact towards advertising
trust, both directly and indirectly through knowledge and affection. Among
variables tested, the perception of affection is the lowest. It is desired that digital
music platform services companies will look into this matter more.
Keywords: social media interaction, knowledge, affection, advertising trust,
digital music platforms
Introduction
The COVID-19 pandemic since 2020 has profoundly impacted many
aspects of life. The seemingly endless continuity creates uncertainty, so
adjustments must be made. Various aspects of life have become one of them,
and the dynamics of it have changed, known as the new normal life. A new normal
life is one in which people constantly face the threat of COVID-19 (Muhyiddin,
2020). It has changed aspects of interaction, socializing, business activities,
transactions/purchases/sales, educational activities, health, and overall human
life (Gugus Tugas Percepatan Penanganan COVID-19, 2020).
On the other hand, it has led many countries to apply movement restrictions
through lockdown (Schlosser et al., 2020), which has also changed many's
lifestyles and has lost some aspects and even needs. There have been significant
changes in media usage during the process, as evidenced by the fact that many
individuals have reported increased media usage (J. Kim et al., 2021). People
To cite this article: Anantia, A.A., Masnita, Y., Kurniawati, K. (2023). Effectiveness of digital music
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platforms’ social media interaction on advertising trust using cognitive aspects. Manajemen dan
Bisnis, 22(1), 1-16. DOI: 10.24123/jmb.v22i1.624
Jurnal Manajemen & Bisnis, Vol.22, No. 1 (March 2023)
tend to look for media to meet their lack of entertainment needs. Even teens will
seek entertainment as a form of effort to relieve the stress they are experiencing,
for example (Hamidah & Putri, 2021).
According to the Indonesian Internet Service Providers Association (APJII)
report about Indonesia's Internet Profile 2022, Indonesia's internet penetration
rate reached 77.02% from 2021 to 2022 and increased by 73.70% from 2019 to
2020 (Asosiasi Penyelenggara Jasa Internet Indonesia, 2022). The findings are
consistent with a survey by Indonesian research firm Alvara entitled Trends in
Indonesian Consumer Behavior During Pandemics. Eight types of entertainment
are introduced in the Entertainment activities during the stay-at-home section,
and social media is ranked high (Alvara Research Center, 2020). It should also
be emphasized that another entertainment below the social media rankings is
primarily electronic media (Figure 1).
Meanwhile, listening to music turned out to be one of the entertainment
activities with a lot to do with stress/depression/mental health. Especially during
pandemics, mental health problems are easier to occur. It emphasized how it has
been proven and studied in various ways. Musical interventions can effectively
reduce psychological stress-related symptoms in different settings (de Witte et
al., 2020). It was also pointed out that there is a high need for measures to reduce
stress, so listening to music would be more frequent.
As the habit of listening to music has changed, various platforms for listening
to music digitally have become available. According to an online post published
on May 4th, 2022, by Business of Apps, nine major music platforms are popularly
used worldwide. These include Spotify, Apple Music, Amazon Music, YouTube,
Pandora, Soundcloud, Tidal, Tencent Music, and Gaana Music. The above
names correspond to the company's total market share and subscriber data
(Curry, 2022). Even during the COVID-19 pandemic, numbers are increasing
rather than declining. That is supported by Global Music Reports 2022 presented
by IFPI (International Federation of the Phonographic Industry), where 2021
marked the highest global record music market growth at 18.5%. Streaming was
a significant driver of overall growth. It is the predominant form of revenue
worldwide, accounting for 65.0% of recorded music revenue, up from 61.9% in
2020 (International Federation of the Phonographic Industry, 2022).
On the other hand, the COVID-19 pandemic had a particularly dramatic
impact on businesses. They had to swiftly rearrange their procedures and
activities to keep their business going (Seetharaman, 2020). It also brought about
significant changes in how businesses interact with and manage customer
relationships (Mangiò et al., 2021). Because of the pandemic's restrictions and
limitations, businesses (as well as people) had to rely on technology more than
ever before to survive (Ricchiardi, 2020). Thus, companies are increasingly
turning to digital marketing as a high-potential promotional strategy, hoping it will
be the best way out of the COVID-19 pandemic (Lestari & Saifuddin, 2020). The
business and company are inseparable from any company, including digital
music platform companies/businesses. Wherein Spotify, one of the digital music
platforms that have succeeded in dominating social media through a campaign
to market its brand, is one example (Jurberg, 2021).
Digital marketing itself is a marketing activity that uses internet-connected
devices with a variety of strategies and digital media to enable businesses to
www.journalmabis.org
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stay in touch with consumers through online communication channels (Chakti,

2019). Websites, blogs, social media (WhatsApp, Line, Facebook, Twitter,
Instagram, and Tiktok), interactive audio-video, interactive audio, and display
advertisement are examples of digital marketing access. Since almost everyone
has social media, social media marketing is the most accessible and most
desirable strategy to implement. That allows businesses to reach their marketing
goals at a relatively low cost (Ajina, 2019). It is supported by the actual data where
91% of marketing organizations use social media as part of their mix, working
with digital advertising as the industry's most used channel (Hillier, 2021;
Salesforce, 2021).
Social Media 82,70%
Internet Browsing 75,10%
Watch Movies (Streaming, DVD) 57,80%
Listening to Music/Radio/Podcast 57,30%

Working Out/Sports
47,60%
(Yoga, gym, jogging)
Play Games 43,20%
Read Books 40,50%
Watching TV (Free to air) 39,50%
Figure 1. Entertainment Activities During Stay at Home

Source: Alvara Research Center (2020)
Based on the above phenomenon, social media marketing as an alternative

to advertising is in line with the increase in the number of digital music platform
services users. However, it is not yet known whether it is one of the essential
factors that support the increase in the number of users on digital music platform
services. Therefore, this research seeks to reveal the matter. It aims to analyze
the impact of social media interaction on advertising trust in digital music
platforms through knowledge and affection as the cognitive aspects used.
Previous research (Zhang et al., 2021) discovered that social media
interaction positively influences consumer knowledge and affection for the
category of luxury brands. It has focused on investigating how it builds interactive
alliances on social media. On the other hand, a difference in the impact of
knowledge on trust was found. One research found that knowledge significantly
negatively impacts advertising trust (Karbownik et al., 2019), while another
indicates that knowledge positively impacts trust (Liu et al., 2021).
Furthermore, to contribute to the state of knowledge and trust, this study draws
insights from social media interaction, which acts as the antecedents. This study
also aims to analyze whether social media interactions positively impact the trust
in advertising behind the increase in digital music platform growth. Whereby,
knowledge and affection become the mediating/intervening variables. The digital
music platforms this study covers have subscription plans in Indonesia (Spotify,
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Apple Music, YouTube Music). Social media networks featuring advertisements

from digital music platforms were chosen as the study's focus (Facebook,
Instagram, Twitter). The conceptual frameworks of this study is shown in Figure
2.
Social media has become culturally significant. It has become the central
platform for many people to do many things, such as accessing information,
sharing content and elements of their lives with others, and learning about the
outside world. It enables unlimited social interaction and provides marketers with
various channels to reach and engage consumers. Additionally, it has developed
into a crucial marketing and communication medium for businesses (Appel et al.,
2020). Hence, social media has become widely used, demonstrating its
effectiveness as a medium for businesses and consumers to share knowledge.
In addition, it may assess user-shared material and modify operational and
business plans accordingly (Neeley & Leonardi, 2018; Papa et al., 2018). In this
study, the interaction aspect of Social Media Marketing is emphasized. Previous
research found that consumer interactions with brands on social media can
significantly increase brand awareness and brand familiarity (Mehrullah & Rohail,
2018), so the hypothesis obtained:
H1: Social Media Interaction has a positive impact on consumer Knowledge of
digital music platform
Social media's rapid development has revolutionized how firms interact

with customers and supported interactive marketing (Huang et al., 2018). The
platforms were increasing and centered around interaction. Consumers'
interactions with their favorite companies on social media influence their
engagement through cognitive, affective, and behavioral mechanisms (Hinson et
al., 2019; C. L. Wang, 2021). Meanwhile, customer affection (which comes under
the affective component) has characteristics in the form of passion connected to
something deep. It is also defined as a strong emotional attachment to a product
or brand that an individual will immediately sense or evaluate overall, determining
whether it has a good, negative, or even mixed value based on their feelings
(Dewi et al., 2021; Schiffman & Wisenblit, 2015).
On the other hand, it discovered that interactions between customers on
social media could simultaneously affect their affection. Taking into account the
significant influence makes customers aware of the companies from their
inception and sparks curiosity to finding out more about them (Zhang et al., 2021).
Therefore, the emotional link to consumer affection that results from the growing
and focused interaction through social media will become stronger. This study
focuses on understanding how social media (specifically, interaction) affects
consumer affection for digital music platforms. The hypothesis obtained:
H2: Social Media Interaction has a positive effect on consumer Affection for digital
music platform
On the other hand, consumer knowledge refers to the number of information

customers know regarding different types of goods and services, along with other
related knowledge and functions (Annas & Hariasih, 2021). Meanwhile,
consumer affection is an emotion or feeling about a specific brand or product that
is evaluative. Based on how they feel about the thing, consumers may evaluate
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it personally or globally and give it a good, negative, or mixed evaluation

(Schiffman; Kanuk, 2008). On the other hand, consumers' opinions about well-
known products tend to evoke stronger emotional reactions, as they are mostly
positive and neutral (Goulart et al., 2021).
A study entitled The importance of knowledge and trust for ethical fashion
consumption found that knowledge of ethical fashion plays an essential role in
consumers’ trust in ethical fashion. It also discovered the importance of
disseminating knowledge to raise product awareness. Studies have also
confirmed that trusting beliefs can enable more precise expectations of results.
That creates a more positive attitude and evokes stronger emotional reactions to
gain trust (Goulart et al., 2021; Liu et al., 2021). This study measured consumer
understanding of digital music platforms via knowledge and how it affects their
affection and trust in advertisement (advertising trust) for the brand. The
hypotheses obtained:
H3: Consumer Knowledge about digital music platform subscriptions has a
positive influence on their Affection for the brand
H4: Consumer Knowledge about digital music platform subscriptions has a
positive influence on Advertising Trust of the brand
Furthermore, brand affection describes the positive emotions that a brand

elicits (Huaman-Ramirez & Merunka, 2019). Research demonstrates that
affection significantly enhances trust. It proves that higher levels of attachment
will affect building trust between parties, customers, and a brand. The affection
of YouTube channel owners is evidence that it can positively impact online
viewers' trust. Therefore, a positive and significant interaction could build trust in
the content (Rofianto et al., 2021). This study focuses on understanding how
consumer affection affects their trust in digital music platforms. Hence:
H5: Consumer Affection about digital music platform has a positive influence on
Advertising Trust of the brand
Due to its quick development and the fact that it is increasingly used, social
media today supports interactive marketing as a new way to communicate with
customers, as previously mentioned. In its specific implementation, social media
marketing engages with customers by providing relevant and recent brand
features (Seo & Park, 2018). It must have assistance in the form of qualified
interactions in order to provide these two things. Therefore, a company's
endeavor to support this is known as customer engagement through social media
(Mahayani, Odytri Caesar, Ismiarta, 2019) and advertising is one approach to
achieve this, which also presents as one factor that has a significant impact. The
reciprocal relationship that was made in an engagement/interaction is known to
be able to help build brand trust.
The goals of advertising are to raise consumer awareness, educate them
about the product, and provide them with convincing proof, by the purpose is to
measure the quality and reliability of advertised products (Yusuf Mesiya, 2020) to
encourage trust in what is advertised. On the other hand, the consumer's desire
to believe in the brand attributes that are advertised is known as trust (Chaudhuri
& Holbrook, 2001). Hence, building trust with consumers is very important
(Moslehpour et al., 2020). Therefore, hypothesis obtained:
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H6: Social Media Interaction is positively related to Advertising Trust of digital

music platform
Knowledge
H1
(+)
H4
(+)
H6
(+)
Social Media Advertising
Interaction Trust
H5
(+)
H3
(+)
H2 Affection
(+)
Figure 2. Conceptual Framework
Research Methods
This study has four variables, where the independent variable is Social
Media Interaction. Knowledge and Affection are the mediating/intervening
variables, and Advertising Trust is the dependent variable. The population of this
study is respondents in Jabodetabek who were 15 years of age or older, and the
sample technique employed was non-probability sampling and purposive
sampling, with the criteria being at least subscribe to one digital music platform.
The number of indicators is multiplied by 5 to 10 to determine the approximate
number of representative samples. 130 samples were required for this study's
minimal sample size (13 indicators multiplied by 10) (Hair, Jr. et al., 2016). On
the basis of the data collection method mentioned, 201 respondents in total were
gathered, with 11 of them being invalid. As a result, 190 respondents in total were
used for this study.
This study collected primary data by spreading online questionnaires
through Google Form, containing five alternative answers for each statement
measured on five scales. A value close to 1, meaning the statement disagrees,
while approaching five means very agree. Based on the characteristics,
respondents are primarily female, aged around 25 – 29. Bachelor degree private
employee dominates, with monthly earnings above Rp 4 million. Table 1 below
shows the detailed information.
The questionnaire and measurements utilized in this study were created based
on prior research. All questionnaire questions were translated into Indonesian,
while three items measured Social Media Interaction, Knowledge, and Affection,
as four items measured Advertising Trust. Sources of the adopted above items
displayed on the following Table 2. Furthermore, the data processing method
used in this study was carried out with Partial Least Squares (PLS). PLS can
apply to any data scale, has few assumptions, and does not require a large
sample size of data or special measurement methods (Ghozali & Latan, 2015).
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Table 1. Respondents Characteristics Summary

Variable Description Frequency Percentage
Male 45 23.3%
Gender
Female 148 76.7%
15 – 19 18 9.3%
20 – 24 62 32.1%
Age 25 – 29 87 45.1%
30 – 34 18 9.3%
> 34 8 4.1%
Students 47 24.4%
Private Employee 83 43 %
Entrepreneur 15 7.8%
Occupation
Teacher/Lecturer 9 4.7%
Public Servants 22 11.4%
Others 17 8.8%
Junior High School 7 3.6%
Senior High School 43 22.3%
Education Diploma 22 11.4%
Bachelor Degree 103 53.4%
Master Degree 18 9.3%
< Rp 1 million 27 14 %
Rp 1 million – Rp 2 million 23 11.9%
Earnings/month Rp 2 million – Rp 3 million 19 9.8%
Rp 3 million – Rp 4 million 17 8.8%
> Rp 4 million 107 55.4%
Table 2. Operationalization of Variables

Variable Dimension Source
Availability of
Social Media Interaction SMI sharing and (Kim & Ko, 2012)
expressing
Brand
Knowledge KNO (Kleiser & Mantel, 1994)
familiarity
Self-
Affection AFC (Y. Wang et al., 2011)
satisfaction
Trust built in
Advertising Trust ADT (Chaudhuri & Holbrook, 2001)
advertising
Result and Discussions

The validity and reliability of the instrument were evaluated before data
processing was put into place to make sure it was a precise and dependable
measurement instrument. Then a descriptive test is run, giving a summary or
description of the data. If the outer loading scored 0.6 or above, the variable's
statement is regarded as valid and latent. At the same time, if Composite
Reliability (CR) scored 0,7 or above, the variable's statement is regarded as
reliable.
All questionnaire items for all variables, except for the SIM2 item, which has
a value of 0.549, were determined to be valid based on Table 3. Due to its low
value, which suggests that the item inquiry was invalid, the indicator item was
eliminated during data processing. Thus, only SMI1 and SMI3 were utilized later
in the research hypothesis's testing.
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Table 3. Outer Loading of Construct

Variable Items Outer Loadings
Social Media Interaction SMI1 0.730
SMI2 0.549
SMI3 0.870
Knowledge KNO1 0.817
KNO2 0.843
KNO3 0.688
Affection AFC1 0.831
AFC2 0.836
AFC3 0.880
Advertising Trust ADT1 0.763
ADT2 0.840
ADT3 0.833
ADT4 0.789
Furthermore, the validity, reliability and descriptive test were carried out
based on Table 4. All are declared valid and can be used. In the validity test, the
outer loading for all items is above 0.6. In terms of reliability, CR is above 0.7 for
all items. That means that everything is compliant and reliable. As for the
descriptive tests, the standard deviation of all items is smaller than the average.
In other words, the data held is less diverse.
With the PLS model used, a determination test is conducted to determine
how much impact the independent factors have on the dependent variable
collectively. Results are shown in Table 5.
From the Knowledge model, 0.290 R Square Adjusted was obtained. It
demonstrates that the variation of the independent variable Social Media
Interaction may explain the variation of the Knowledge variable by 29%. In
comparison, the remaining 71% is a variation of other independent factors that
affect Knowledge but are not included in the model. The same goes with the
Affection and Advertising Trust models, which obtain R Square Adjusted of 0.224
and 0.048. Variation of Social Media Interaction as the independent variable may
explain the variation of Affection by 22.4% and Advertising Trust by 4.8%.
Meanwhile, the remaining 77.6% and 95.2% are variations of other independent
factors that affect Affection and Advertising Trust but are not included in the
model.
Table 6 shows the results of testing the research hypothesis and the direct
effect on each variable. Suppose the p-value of the t-statistic is less than or equal
to 0.05. In that case, this indicates a positive effect between the variables. Social
Media Interaction proved to have a positive influence on consumer Knowledge of
digital music platforms, shown by the p-values of 0.003, indicating that H1 is
supported. These findings support an earlier study that asserts social media
interaction has a positive impact on consumer knowledge (Zhang et al., 2021).
That demonstrates how well-used social media is by the companies of digital
music platforms in their marketing efforts, where the role is to communicate with
current and potential customers. It is demonstrated by the fact that Spotify, Apple
Music, and YouTube Music advertisements are simple to find when we use social
media like Facebook, Instagram, and Twitter. The three platforms are the most
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widely used around the globe because of the intensity of these advertisements'
presence, which improves consumer contact and awareness.
Table 4. Construct Reliability, Validity and Descriptive Statistics
Outer Composite Std.
Variable/Indicators Conclusion Mean
Loadings Reliability Deviation
Social Media Interaction Reliable 4.242 0.729
SMI1: Social Media of digital
music platform brands make
0.730 Valid 4.411 0.641
it possible to share
information with others 0.766
SMI3: It is easy to express
an opinion about social
0.870 Valid 4.074 0.817
media of digital music
platform brands
Knowledge Reliable 3.882 0.881
KNO1: Feeling
knowledgeable enough
0.817 Valid 3.837 0.821
about digital music platform
brands 0.827
KNO2: Enjoy learning about
0.843 Valid 3.884 0.863
digital music platform brands
KNO3: Can recognize almost
all digital music platform 0.688 Valid 3.926 0.960
brand names
Affection Reliable 3.572 1.051
AFC1: Digital music
platforms are special, and
0.831 Valid 3.742 0.963
using them makes it feels
different
AFC2: By subscribing to a 0.886
digital music platform, it feels 0.836 Valid 3.295 1.137
successful
AFC3: Using digital music
platform services increases 0.880 Valid 3.679 1.055
confidence
Advertising Trust Reliable 3.802 0.906
ADT1: Advertisements from
digital music platforms on 0.763 Valid 3.753
0.922
social media is trustworthy
ADT2: The advertising
content of the digital music
0.840 Valid 3.842 0.880
platform provides accurate
information about the product 0.822
ADT3: The advertising
content of the digital music 0.833 Valid 3.868 0.876
platform is a fact
ADT4: Much information
could be obtained from the
0.789 Valid 3.747 0.946
advertising content of digital
music platform
Source: Primary data processed
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Table 5. Coefficient Determination

Construct R Square R Square Adjusted
Knowledge 0.301 0.290
Affection 0.233 0.224
Advertising Trust 0.053 0.048
Table 6. Research Hypothesis Testing

T-
Hypotheses Coefficient P-Value Decision
statistics
0.229 2.954 0.003 Supported
H1
H2 0.080 0.927 0.354 Not Supported
H3 0.458 8.096 0.000 Supported
H4 0.163 1.683 0.093 Not Supported
H5 0.353 4.553 0.000 Supported
H6
0.223 3.192 0.002 Supported
Different results appear where Social Media Interaction does not positively
influence consumer Affection for digital music platforms, as shown by the p-
values of 0.354 (>0.05). Therefore, H2 is not supported. This result contradicts
previous research findings (Huang et al., 2018; Zhang et al., 2021) in which,
through social media, consumers could have a good and positive interaction so
that positive affection occurs. There are demographic factors that result in this
study having no positive impact. This study conducted in Indonesia, with most
respondents, are aged between 25-29, while in previous research, respondents
were in China with a range of ages is between 30-39. It supposes that the
respondents' usage patterns for social media in the two age groups differ.
Indonesian Millennials, those between the ages of 25-29, prefer messaging and
browsing to utilizing social media (Alvara Research Center, 2020). If consumers
are not too intensive in their use, the effect will not be too noticeable, no matter
how high the interaction produced by digital music platforms on social media.
Consumer knowledge proved to have a positive influence on their affection
for the brand. It is shown by the p-values of 0.000 (<0.05) that H3 is supported.
That is similarly found by previous research where knowledge positively
influences affection, which indicates that information assessed and interaction
obtained could give a positive affection towards a brand (Zhang et al., 2021). It
could also explain why consumers prefer some brands over others, considering
that their opinions tend to evoke stronger emotional reactions to a well-known
product (Goulart et al., 2021; Zhang et al., 2020). In this case, respondents have
shown that Spotify, Apple Music, and YouTube Music are well-known and
familiar, so with the current knowledge, positive affection can be achieved.
On the contrary, consumer knowledge about digital music platforms does
not positively influence the advertising trust of the brand. It is shown by the p-
values of 0.095 (>0.05) that H4 is not supported. These findings are consistent
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with earlier research that found a significant negative relationship between

knowledge and advertising trust (Karbownik et al., 2019). Therefore, we can
conclude that consumer knowledge of digital music platform brands is insufficient
to increase advertising confidence. It is also apparent that many people believe
advertising to be nothing more than a gimmick. Furthermore, social media
advertisements are created to be as straightforward and appealing as possible,
with extra information that can only be found by browsing other pages.
Separately, affection and social media interaction proved to have a positive
impact on advertising trust. It was shown by the p-values of 0.000 and 0.002 each
(<0.05), so H5 and H6 are supported. Results obtained support earlier study, as
affection has been proven to have a positive and significant impact on advertising
trust (Rofianto et al., 2021). Meanwhile, social media interaction built from its
engagement with the brand positively impacts advertising trust (Mahayani, Odytri
Caesar, Ismiarta, 2019). That demonstrates Spotify, Apple Music, and YouTube
Music have given their brands good and powerful affection so that connections
created through advertisements can build mutual trust. These brands have also
demonstrated their use of social media as a communication channel by
conveying current and relevant information about their products. One is through
advertising as a strategy to make a significant impact. As a result, consumer
awareness and trust in the services offered may rise. That is consistent with the
fact that many businesses are converting to social media as a platform for
conducting marketing operations and reaching consumers more simply and less
expensively (Ajina, 2019; Hillier, 2021; Salesforce, 2021; Yusuf Mesiya, 2020).
Aside from that, the indirect effect (which serves as a mediator) is depicted
in Table 7.
Table 7. Specific Indirect Effects

Original T- P-
Variables Decision
Sample statistics Value
Knowledge -> Affection -> Advertising Trust 0.161 3.798 0.000 Supported
Social Media Interaction -> Knowledge ->
0.037 2.140 0.033 Supported
Affection -> Advertising Trust
Social Media Interaction -> Affection -> Not
0.028 0.901 0.368
Advertising Trust Supported
Social Media Interaction -> Knowledge -> Not
0.037 1.289 0.198
Advertising Trust Supported
Social Media Interaction -> Knowledge ->
0.105 2.631 0.009 Supported
Affection
P-values below 0.05 serve as evidence for the indirect effect, much like the
direct effect. It is clear from Table 7 that Knowledge and Affection respectively
function as mediators of Social Media Interaction and Advertising Trust. It is
acknowledged that social media interactions lead to the creation of knowledge,
which in this case refers to familiarity with the service. With their knowledge,
consumers know themselves, their tastes, and their affection for the service.
Thus, trust can be easily obtained using cognitive aspects (knowledge and
affection) as a firm foundation.
On the other hand, Affection and Knowledge respectively do not function as
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mediatiors between Social Media Interaction and Advertising Trust. As seen in

Table 6, Affection is not positively influenced by Social Media Interaction. As a
result, despite the fact that Affection alone has a positive influence on Advertising
Trust, Affection does not serve as a mediator of Social Media Interaction on
Advertising Trust. The same thing applies to Knowledge, despite the fact that
Social Media Interaction has a positive influence on Knowledge, however,
Knowledge does not have a positive influence on Advertising Trust and does not
serve as a mediator of Social Media Interaction on Advertising Trust.
Conclusion
Social media interactions created by digital music platforms in building trust
in advertising have proven to be effective, showing a significant positive effect,
both directly and indirectly. Directly, interactions provided by digital music
platforms have the potential to impact consumer trust in advertising. It is
discovered indirectly that social media engagement must occur via knowledge
and through knowledge via affection, respectively. That is, the interaction cannot
be produced solely by either knowledge or affection. It has been discovered that
social media interactions cannot directly influence affection, but such affection
can affect advertising trust. Furthermore, whereas social media interactions can
impact knowledge, knowledge cannot directly influence trust in advertising.
It can be concluded that interactions on social media must give users
enough knowledge to feel strongly about an advertisement and help build trust in
it. This study contributes to the body of literature by offering a viewpoint by
examining digital music platforms, taking into account the dynamics of the role of
knowledge on trust in prior studies on health and fashion items. The social media
interaction variable was additionally provided as an antecedent.
According to the mean value, which is the lowest of the mean of other
factors, affection is the variable that the respondents see as having the lowest
level. Although affection impacts trust in advertising directly, it is recommended
for digital music platforms companies' management to enhance efforts to show
consumers affection for their services. In order to gain and keep customer trust,
companies can experiment and explore more with both the creation of
interactions and the provision of more appealing and credible information and
knowledge.
On the other hand, social media interaction has the highest mean among all
factors. This illustrates the importance of social media engagement, and it is
further suggested that digital music platforms can preserve or even strengthen
existing social media interaction alliances to motivate users to engage. From a
managerial point of view, in addition to sharing and expressing on already-
existing social media, digital music platforms can achieve this through various
media such as quizzes or interactive real-time question and answer features. The
features could be in a form where it could capture consumer’s music preference,
as this interaction will help them to understand on how is their taste upon music.
It will capture their cognitive aspects through knowledge and affection, so trust
can be easily obtained. Furthermore, the results of this feature can also be shared
on social media, which can improve engagement and spark curiosity among
social media users generally in the possibility of interacting with digital music
platforms through social media.
12
The COVID-19 pandemic's effects have mainly been shown to exist and
continue the phenomenon of rising internet and digital music platform usage. It
has also been demonstrated that social media has evolved into a powerful tool
for businesses to communicate and promote their goods and services to survive,
thus, it is essential and vital to employ social media in the marketing of digital
music platforms.
This study has several limitations, one of which is that it only concentrated
on the top three platforms with subscription features that are accessible in
Indonesia. It is also restricted to the digital music market. The cognitive aspect
used is also limited to knowledge and affection. Therefore, future research can
use other digital music platform companies, industries, and cognitive aspects.
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16
Impact of service quality dimensions on student satisfaction

Suroto, Tri Nurdyastuti
STIE Adi Unggul Bhirawa, Surakarta, Indonesia
Corresponding author: Suroto, suroto@stie-aub.ac.id
Received: September 1st 2021; Accepted: December 27th, 2021; Published:

March 21st, 2023
Abstract
The purpose of this study was to examine the effect of service quality
dimensions consisting of Tangibles, Reliability, Responsiveness, Assurance,
and Empathy variables on student satisfaction at STIE AUB Surakarta.
Respondents in this study were students at STIE AUB Surakarta. The analysis
tool uses logistic regression. The sampling technique used is a random
sampling technique. The consequences of the examination show that physical
assets have a critical constructive outcome on fulfillment. Unwavering quality
has a huge adverse consequence on understudy fulfillment. Responsiveness
has a critical constructive outcome on understudy fulfillment. Confirmation has a
huge beneficial outcome on fulfillment. Compassion has a huge beneficial
outcome on fulfillment. The managerial implication of this result is that the
management of STIE AUB Surakarta must increment the positive and huge
factors that influence understudy fulfillment, namely the Tangibles,
Responsiveness, Assurance, and Empathy variables, and reduce the variables
that have a negative and significant effect, namely the Reliability variable so
that the credibility of STIE AUB remains awake.
Keywords: tangibles, reliability, responsiveness, assurance, empathy,
satisfaction.
Introduction
The current period of globalization truly requires solid HR, on the grounds
that the advancement of a nation relies upon the nature of HR. The better the
nature of a country's HR, the higher the country's seriousness with different
nations. The state must pay attention to education programs if it does not want
to lose a generation that is reliable, intelligent and has integrity in the nation.
Education is the basic capital to ensure the development and continuity of the
nation's life in addition to other capital including natural capital and existing
wealth, because education will change attitudes and behavior and it can
develop human knowledge skills.
Globalization motivates educational institutions to improve the quality of
graduates to be able to compete with domestic and foreign workers. Higher
education institutions, both public educational institutions and private
educational institutions have the same responsibility to prepare human
resources. In order to be able to compete in order to maintain the viability of the
university, one of which is excellence in the field of operational services to
To cite this article: Suroto, S., Nurdyastuti, T. (2023). Impact of service quality dimensions on
student satisfaction. Manajemen dan Bisnis, 22(1), 17-26. DOI: 10.24123/jmb.v22i1.564 17
Jurnal Manajemen & Bisnis, Vol.22, No. 1 (2023)
students.
An ideal rivalry framework, where numerous makers offer similar labor and
products, the way to winning the opposition is quality, particularly administration
quality. Service quality as a metric for how well a company's quality of service
meets consumer expectations According to this definition, service quality is
defined as the satisfaction of a customer's requirements and aspirations, as well
as the precision with which they are delivered in order to meet their
expectations (Lewis & Booms, 1983). Moreover, today's universities, as one of
the service organizations, are experiencing increasing demands from the
community. Colleges are as of now required not exclusively to have the option
to create quality alumni that are estimated scholastically, yet additionally to
demonstrate great responsibility. Society overall requests that colleges
incorporate, among others: quality affirmation, quality control, and quality
improvement (Indriyenni, 2017).
Researched a number of service industries and succeeded in identifying
ten main Reliability, responsiveness, competence, access, civility,
communication, credibility, security, customer understanding, and tangibles are
all aspects of service quality (Parasuraman et al., 1988). However, in 1988, it
was found that there was an overlap between the above dimensions. Thus
simplifying the ten dimensions mentioned above into five main dimensions of
service quality, namely: tangibles, reliability, responsiveness, assurance,
empathy (Tjiptono, 2016). According to (Parasuraman et al., 1985), states that
"Service quality is a fundamental strategy for success and survival in a tight
environment". This applies to school services seen as what consumers expect.
The gap that often occurs is the difference in the quality perceptions and
attributes of Services for education. There are five steps to achieving a good
service organization, namely: reliability, responsiveness, assurance, empathy,
and tangibles (Machali, 2015).
Assurance, tangible, and reliability variables have a significant effect on in
terms of patient satisfaction, but responsiveness and empathy variables have
no significant effect on in terms of patient satisfaction (Amalia et al., 2017).
Tangible, assurance, empathy variables have a significant effect on passenger
satisfaction. While the reliability and responsiveness variables have no partial
effect on passenger satisfaction (Veronica & Supriyono, 2016). Research shows
that physical, reliability, responsiveness, assurance, empathy have a significant
positive effect on Indihome customer satisfaction. (Armanto, 2018).
As an educational institution, STIE Adi Unggul Bhirawa Surakarta cannot
avoid this global competition. STIE Adi Unggul Bhirawa Surakarta must be
ready to compete with these other educational institutions in providing the best
educational services. The purpose of this study was to see how quality
dimensions, which included of Tangible, Reliability, Responsiveness,
Assurance, Empathy concern for student satisfaction at STIE AUB Surakarta.
The expected result of this research is to know the expectations and level
of student satisfaction with educational services at STIE Adi Unggul Bhirawa
Surakarta. Furthermore, it can be seen the reality felt by students in connection
with the implementation of the education service system at STIE Adi Unggul
Bhirawa Surakarta, so that corrective actions can be taken to improve the
quality of educational services.
18
Customer satisfaction is a fundamental concept in contemporary theory

and use of marketing. Customer satisfaction is seen as the main element that
determines the success of a marketing organization, both business and non-
profit organizations (Tjiptono, 2015). While according to (Strauss & Neuhaus,
1997), distinguish three types of satisfaction and two types of dissatisfaction
based on a combination of specific emotions towards service providers,
expectations regarding the future performance capabilities of service suppliers,
and behavioral interest in choosing the service provider again. The types of
satisfaction and dissatisfaction are requesting fulfillment, stable fulfillment,
surrendered fulfillment, stable disappointment, and requesting disappointment
(Tjiptono, 2016). According to (Windasuri & Susanti, 2017). consumer loyalty is
an enthusiastic reaction to the assessment of the utilization experience of an
item or administration. Student satisfaction is the satisfaction that is felt by
students (emotionally) for all the services provided by STIE AUB Surakarta.
Indicators: Facilities owned, appearance of employees, sincere attention,
guarantees provided, assistance provided to students.
One of the secrets to succeeding in the market is to focus on quality.
When the business has been able to deliver high-quality goods, it has built one
of the foundations for creating customer satisfaction. As per (Goetsch & Davis,
2010), expresses that quality is a powerful condition identified with items,
administrations, HR, measures, and the climate. that meets or surpasses
assumptions. Dimensions of quality according to Zeithaml (2013), can be
broken down into five distinct dimensions, thus: Tangibles, Reliability,
Responsiveness, Assurance, Empathy (Tjiptono, 2016).
According to (Parasuraman et al., 1988), tangibles relates to the
appealingness of the company's physical buildings, equipment, and materials,
as well as the appearance of its workers (Tjiptono, 2016). Based on this
opinion, it can be concluded that real evidence is visible conditions, facts related
to the company, including various objects such as seats, lighting, wall colors,
daily correspondence, employee appearance, and employee friendliness and so
on. This dimension consists of dimensions related to company equipment and
facilities as well as personnel and communication materials used in providing
services to customers.
According to Zeithaml (2013) dependability refers to a company's capacity
to provide accurate services the first time, without making any mistakes, and to
provide them on time. (Tjiptono, 2016). From this understandings, it can be
concluded that reliability is the company's ability to provide services to
customers in accordance with the company's commitments that have been
promised, not just promises but evidence of truly reliable and reliable services.
Reliability reflects the consistency and reliability of the company's performance,
as well as concerns the questions of whether the company provides the same
level of service from time to time, or changes significantly each time it is
provided.
According to (Zeithaml, 2013), responsiveness ln terms of staff' willingness
and capacity to assist customers and respond to their demands, as well as to
inform consumers when services will be delivered and then provide services
rapidly (Tjiptono, 2016). From this understanding it can be concluded that the
responsiveness of a company is the company's way of always responding and
19
trying to help its customers in providing services quickly and precisely.

According to Zeithaml (2013) assurance employee behavior may
encourage client trust in the organization, and the corporation can provide its
customers a sense of security. It can be concluded that guarantee is an effort to
prove the company's performance in the context of providing services to
customers based on skills, knowledge, abilities, attention, honesty and
convincing nature so that they are free from doubts, risks and dangers that can
be inflicted on customers.
According to Zeithaml (2013) empathy means that the company
understands its customers' concerns and acts in their best interests. It also
means that the company provides personalized service and operates during
convenient hours. So the segment of this measurement is a blend of access, to
be specific the simplicity of using the administrations offered by the
organization, correspondence is the capacity to pass on data to customers.
Research conducted that tangibles have a big positive impact on Indihome
customer satisfaction (Armanto, 2018). Tangibles have a significant effect on
patient satisfaction (Amalia et al., 2017). Tangibles has a huge positive impact
on the Arab Bank's services (Al-Azzam, 2015).
Research shows that positive impact of reliability is enormous on Indihome
customer satisfaction (Armanto, 2018). In Jordanian Islamic banks, reliability
has a substantial beneficial impact on client satisfaction (Muala, 2016). Patient
satisfaction is influenced by reliability (Amalia et al., 2017).
Research shows that Indihome consumer satisfaction improves
significantly when service is responsive (Armanto, 2018). In Jordanian Islamic
Bank, responsiveness has a positive and significant impact on customer
satisfaction (Muala, 2016).
Assurance has a considerable favorable impact on Indihome customer
happiness, according to research Armanto (2018). In Jordanian Islamic Banks,
assurance has a good and considerable impact on customer satisfaction
(Muala, 2016). Affirmation significantly affects patient fulfillment (Amalia et al.,
2017).
Research that Indihome client satisfaction is significantly improved by
empathy (Armanto, 2018). Empathy has a substantial positive impact on Arab
bank client happiness (Al-Azzam, 2015). The framework of thought in this
research shown by Figure 1.
Research Methods
The object of this research is the students of STIE AUB Surakarta. The
study's participants were STIE AUB Surakarta D3 and S1 students, the number
of which was ± 450 people. The sampling method in this study is by means of a
random sampling technique, namely the sample is taken randomly in the April
2021 period (cross sectional data or random data taken at a certain time) and
each individual observation has the same opportunity to be selected as
respondents. The sample is set at 100 students. A sample of 100 people was
able to represent the existing population (Sugiyono, 2015). This study uses a
questionnaire model research design on a number of STIE AUB Surakarta
students as respondents.
20
Tangibles
Reliability
Student
Responsiveness satisfaction
Assurance
Emphaty
Figure 1. Thinking Framework
The analytical technique used in this research is testing the tool for study
in the form of a validity test with the one shot method and reliability testing is
measured using Cronbach's Alpha technique. Multiple logistic regression
analysis was utilized to analyze the data in this study, with the following
equation, you can determine the effect of the independent variable on the
dependent variable:
Ln = b0 + b1 X1 + b2 + b2 X2 + .. bi Xi (1)
While in (Ghozali 2016) the formula is described as:
Ln = b0 + b1 X1 + e (2)
Based on the formula above, in this study the formula used for multiple logistic
regression is as follows:
Ln = bo + b1 X1 + b2 X2 + b3 X3 + b4 X4+ b5 X5+ e (3)
The information of the formula, p is probability of respondents being satisfied, 1-
p is probability of respondents feeling normal and dissatisfied, X1 is tangible, X2
is reliability, X3 is responsiveness, X4 is Assurance, X5 is Emphaty, bo is
konstanta, and e is error/disturbance.
The appraisal of the model in strategic relapse can be seen from the -
2Log Similarity (- 2LL). The worth of - 2LL follows the Chi Square X2
appropriation with a level of opportunity n-α. Hosmer and Lemeshow's Decency
of Fit Test tests the invalid theory that the exact information fits or fits the model
(there is no distinction between the model and the information so the model can
be supposed to be fit). In the event that the worth of Hosmer and Lemeshow's
Decency of Fit Test measurement is equivalent to or under 0.05 then Ho is
dismissed, which implies there is a huge contrast between the model and the
noticed worth so the Integrity of Fit model isn't acceptable. In the event that the
worth of Hosmer and Lemeshow's Decency of Fit Test measurement is more
noteworthy than 0.05 then Ho is acknowledged which implies there is no critical
contrast between the model and the noticed worth so the Integrity of Fit model
can be supposed to be fit.
The estimated maximum likelihood of parameters and models can be seen
in the display of the output variable in the equation (Ghozali, 2016). The
estimation of the logistic coefficient measures the ratio of the probability of an
event occurring or not occurring. If the coefficient is positive the probability of
21
occurrence increases, and if it is negative the opposite is true.

Wald's test was used to test whether each significant logistic regression
coefficient was not equal to zero.
Wald test = β (Ghozali, 2016) (4)
Standard Error

Before the data was analyzed by Multiple Logistics Regression Analysis,
the validity and reliability of the questionnaire were tested first. The results of
the instrument test are known as follows:
Table 1. Instrument test results

Test Tools Variable Status
Tangible Valid
Reliability Valid
Validity One shot methods Responsiveness Valid
Assurance Valid
Emphaty Valid
Tangible Reliabel
Reliability Reliabel
Reliability Cronbach Alpha Responsiveness Reliabel
Assurance Reliabel
Emphaty Reliabel
Source: Processed data, 2021
The table 2. above can be seen the results the full model test uses 5
independent variables, namely Tangibles, Reliability, Responsiveness,
Assurance and Empathy compared to the model that only uses statistically
proven constants to be trusted. This can be seen from the omnibus test, the
Chi-Square results of 61.157 with a significance of 0.000 indicating that a
number of explanatory variables (Tangibles, Reliability, Responsiveness,
Assurance and Empathy) are able to distinguish the level of satisfaction of
satisfied and dissatisfied students convincingly.
The predictive ability of this model is quite good, which is 97%. The
satisfaction level of satisfied students is 85 out of 85 students or 100% and the
number of dissatisfied students is 12 out of 15 students or 80% has been able
to be predicted correctly.
The correlation matrix shows no serious multicollinearity between
independent variables, as seen from the correlation value between independent
variables below 0.8. The results of the Hosmer and Lemeshow test show that
the Chi-square value is 2.860 with a significance of 0.898, so there is no
significant difference between the model and the observed value so that the
Goodness of Fit model can be said to be fit.
The test results of how much the model is able to explain the probability
that consumers are satisfied with the service and consumers who are not
satisfied with the service are explained by the Nagelkerke R2 value of 0.802.
This shows that the ability to explain variables namely Tangibles, Reliability,
Responsiveness, Assurance and Empathy to the probability of students being
satisfied and dissatisfied is 80.2%. Parameter estimation and their interpretation
22
Table 3. Logistics Coefficient

Model Variable Coefficient t Sig Note
Wald Test Constanta 3,825 0,778
Tangible 2,255 10,873 0,001 Significant
Reliability - 3,951 6,073 0,014 Significant
Responsiveness 7,444 11,077 0,001 Significant
Assurance 3,606 6,144 0,013 Significant
Emphaty 2,365 3,964 0,046 Significant
Source: Processed data, 2021
Table 3 shows the results of the data regression equation above shows
that Tangibles, Responsiveness, Assurance, Empathy are positively and
significantly associated with the probability of students being satisfied and
dissatisfied. The reliability variable has a negative and substantial relationship
with the likelihood of students being satisfied or unsatisfied.
Given the importance of the value of student satisfaction in determining
the level of better service quality, the variables determining student satisfaction
must always be improved and considered; it means that if the service is not
good, it must be improved for the better so that the credibility of STIE AUB
Surakarta is maintained. Services that are too excessive can cause students to
decrease their satisfaction.
The responsiveness variable is a very important variable in influencing
student satisfaction because it has the most dominant probability which is a
form of employee seriousness in providing services. The seriousness of an
employee is very vital. Students will feel comfortable and confident when
handled by employees who show seriousness in their services. On the other
hand, students will be worried (don't believe it) if handled by employees who are
not serious. Attitude reflects a person's personality, for that the management
must always advise and direct employees to be serious and serious in providing
services, not at will. To form this attitude, education and training regarding
personality is important for all employees related to services. So that they can
become individuals who are elegant and authoritative.
Readiness must also be shown by all service employees, the management
must take firm action against all employees who do not heed the rules and
discipline. This can be started from the top management, leaders set a good
example to their employees that readiness is the main thing in service.
Continuous readiness can create an attitude of discipline and speed, not to
delay work.
Assurance variable is a variable that is also significant in terms of
impacting student satisfaction. The existence of guarantees for everything that
STIE AUB Surakarta has can increase the degree of student confidence to get
good service and trust to become students. Therefore, the management must
be able to provide the best possible guarantee to students and increase this
assurance variable again, so that they feel at home and do not switch to other
universities. The form of guarantee can be in the form of definite complaint
handling, the accuracy of the costs that must be incurred in accordance with
existing promotions, as well as responsive and friendly staff to all students.
Tangibles are variables that also affect student satisfaction. The
23
management of STIE AUB Surakarta must improve the quality of the existing
facilities. No matter how good the services provided, if the facilities owned by
STIE AUB Surakarta are inadequate, students will definitely feel uncomfortable
and uncomfortable, for example, lecture hall facilities, parking facilities, security
facilities and WC facilities. Lack of good facilities can be a source of outside
promotion that causes people to distrust.
Empathy variable is another variable that has a positive effect on student
satisfaction. Therefore, the Management of STIE AUB Surakarta must improve
the indicators of empathy variables continuously, for example is good
relationships/interactions and communication with students, providing complete
information, handling students with understanding and patience, caring for
students and their families, caring for student complaints and desires,
understanding the needs needed by students, special attention to students and
not discriminating against students' social status.
Variables that have a positive value, management as much as possible
improve the indicator. Improving the ability, knowledge and service skills of
employees is absolutely necessary so that there is a synergistic relationship
between employees and students. This is the hope of all parties. If this situation
can be formed properly, surely the students will be able to provide the right
information to other prospective students about STIE AUB Surakarta and
become the right promotion tool, and cheap compared to other forms of
promotion. Students and families who are satisfied will have more confidence
and believe that STIE AUB Surakarta is a trustworthy university.
The accuracy and alertness of an employee is needed in providing
services to students. Serious attitude and respect for students will have a
positive impact on the image of the institution. Students will always have a
sense of trust and enthusiasm that the services provided are wholehearted
services, all are served well according to their portions. For this reason, STIE
AUB Surakarta must continue to improve the quality of service capabilities as
promised to students. Commitment to good service must always be upheld.
Waiter fast, accurate, reliable and reliable service greatly affects the level of
student satisfaction.
Reliability variable is an influential variable with a negative value. The
variable with this negative value implies that if the variable is left alone it will
reduce the value of student satisfaction. Moreover, if it is increased by one unit,
it becomes an anomaly, namely the negative points will increase. This happens
because of the reliability variable; such as fast service, very friendly and polite
service, uncomplicated procedures, concern in serving students, and timeliness
of service are counter productive to student satisfaction at STIE AUB Surakarta.
Why is that, because sometimes the information provided is not in accordance
with what students need. This causes students to be dissatisfied. For this
reason, as far as possible the management of STIE AUB Surakarta should
reduce services related to variable reliability gradually, because if this finding is
not immediately responded to, it will cause students to become dissatisfied and
result in student distrust of the institution. Maintaining this variable is very
unprofitable and counterproductive.
24
Conclusion
Based on the findings of the preceding analysis, which were gathered
through the use of logistic regression tests on respondents, Finally that the
dimensions of service quality at STIE AUB Surakarta which consist of tangibles,
responsiveness, assurance and empathy variables are able to explain or predict
positive student satisfaction. Therefore, the four dimensions of service need to
be maintained and even improved continuously to maintain the image of STIE
AUB Surakarta as a private university that can be trusted and can provide very
satisfying services. Dimensions of service quality in the form of reliability are
able to explain or predict satisfied students negatively. Therefore, this variable
does not need to be increased because if it is increased or maintained it will
actually give negative points to the satisfaction value and reduce satisfaction
itself. The test results are how much the model is able to explain the probability
of satisfied and dissatisfied consumers with the service described by the
Nagelkerke R² value. of 0.802.
Acknowledgments
The author would like to thank several parties who have supported this
research, including:
1.Head of the STIE Adi Unggul Bhirawa (STIE AUB) Surakarta.
2.P3M STIE Adi Unggul Bhirawa (STIE-AUB) Surakarta.
3.The entire academic community of STIE Adi Unggul Bhirawa (STIE-AUB)
Surakarta.
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26
Post global pandemic and national paradigm of resilience in

SMEs Indonesia
1Nuzulul Fatimah, 2Muhammad Gunawan Wibisono, 3Abid Fareed
1,2Sekolah Tinggi Ilmu Ekonomi Mahardhika, Surabaya, Indonesia
3National College of Business Administration and Economics, Lahore, Pakistan
Corresponding author: Muhammad Gunawan Wibisono,

muhammad.wibisono@stiemahardhika.ac.id
Received: June 11th, 2022; Accepted: August 9th, 2022; Published: March 21st
2023
Abstract
Indonesia has a big potential of development by boosting up the SMEs. The

SMEs seems neglected by its history on Indonesia as the main focus remained
on public sector. The SMEs particular in large scale manufacturing units beyond
the government, bank, and liberalization. As the SMEs sector period withdraw
their development because of lack skill and function. In this research, SMEs
sector in Indonesia as an object using the bibliography methodological to analyze
the paradigm and liberate realizing the need to specify the key terms for purposes
resilience on post global pandemic. Through innovative business opportunities
and creating value by individuals, it is an effort to create value. In addition, this
value creation can be done by providing encouragement to manage the risks of
a project, improving communicative and management skills in helping the
movement of people, fast materials and financial resources for project success.
Keywords : Resilience, Pandemic, SMEs, Implementation, Indonesia.
Introduction
The development of logic and discourse in economic development today is
trying as much as possible to stop economic intervention by the hands of the
government and leave it completely to the invisible hand of the market. This very
market-oriented view has drawn criticism presents a synthesis that the state and
the market are a mutually offsetting relationship, not a substitute one (Miles &
Shipway, 2020). A keynesian view from Rodrik is an introductory basis in the
process of creating today's economic development. The market requires an entity
that can play a role as a regulator to prevent market failures and the impacts it
will create (Ratten, 2020).
Theories of resilience are broad and varied. In several aspects of
developing resilience theory, it utilizes the issues, actors, and objects studied.
Resilience theory provides an understanding of views based on micro and
historical levels of an individual (Portuguez Castro & Gómez Zermeño, 2020). In
this study, the theory of resilience provides an individual category that is called
the theory of individual resilience and relates to salute genesis including
development, continuation, focus of control, commitment, and learned resources.
Resilience is translated into several factors, including protective factors
To cite this article: Fatimah, N., Wibisono, M.G., Fareed, A. (2023). Post global pandemic and 35
national paradigm of resilience in SMEs Indonesia. Manajemen dan Bisnis, 22(1), 35-53. DOI:
10.24123/jmb.v22i1.618
including personal, social, family nor development perspective (M. Sharma &
Joshi, 2020). An individual provides a form of resilience by fighting negative
issues related to his life. An important component of resilience is the state of
being alert in distress, avoiding harm, and threats that result in individual
vulnerability. Based on the theory of individual resilience, each time the actor will
be calculated objectively based on the ratio between the presence of a protective
factor and the presence of a dangerous state. There are four patterns of individual
resilience based on some literature with the implementation of Entrepreneur actor
(Pathak & Joshi, 2020).
National paradigm of resilience in Indonesia SMEs sector, are under the
responsibility of regional governments which in reality better recognize and
understand the potential of the region. The regional government, in the
implementation process, can implement a protection mechanism on vocational
so that it can continue to be oriented towards its growth and development (López-
Santos et al., 2020). Domestic market protection is something that needs to be
implemented by the government so that in the development process, this is done
before Indonesia opens and fully integrates its domestic market with global
competition. Furthermore, the economic impact caused by the Covid-19
Pandemic has made us realize that state interdependence is a matter that is full
of risks if an economic shock occurs on the global market (Farca & Dragoș, 2020).
The resulting market contraction hampered the global trade line and even met
paralysis, in this case, to restore Indonesia's economic conditions in the Post-
Covid 19 era, it is necessary to optimize the regional potentials owned, first
protect so that the development created is not accompanied by with widening
disparities between regions.
While there are different approaches to understanding resilience, resilience
is a feature in this study. According to this approach, flexibility is a positive
personality trait that promotes adaptation (Hundal et al., 2020). Resilience is a
set of individual traits that can facilitate adaptability to stressful life events. On the
other hand, stressors may represent growth opportunities and increased
resilience of the individual, promoting a return to higher levels of nor balance of
power.
The relationship management perspective has been criticized and
contrasted for focusing too much on individual entities according to resilience
theories with two parallel lines of research that encourage business practices to
view relational exchanges from a systems perspective (Lose et al., 2020). These
exist across the performance domain, sales force customization, sales force
management, and sales to domain. On the one hand, resilience theory provides
a foundation for understanding and applying each principle in an increasingly
dynamic and interconnected environment (Fath et al., 2020). These can be found
in Performance Domain, Sales Force Allocation, Sales Force Management, and
Sales to Domain. However, as research moves towards this systematic view of
actors and exchanges, contextual efforts are needed to determine how specific
actors can participate most effectively (Chikwanda, 2020). These insights can
enable companies to understand the impact of all stakeholders needed to better
manage relationships, while a lack of clarity about the complexity of the
ecosystem can frustrate efforts and hurt results. The resilience as the non-linear
exchange involving a large number of stakeholders.
36
the individual may have adjustment problems and use destructive means to
cope with stressors. This means that resilient individuals can maintain their
psychological health by protecting themselves from the negative effects of difficult
times. The analysis also suggests a useful operational definition of resilience
used here: the ability to overcome adversity and succeed despite exposure to
high risk for threat level (Ongkowijoyo et al., 2020). The ability to maintain
competence on turnover and the ability to recover from trauma are also frequently
cited definitions (Liu et al., 2020).
RQ1: How to implementing resiliences in the Small Medium Entrepreneurship in
Indonesia sector?
Research Methods
At the beginning we explained the system of systematic review. First, we
examined the links between entrepreneurial resilience and resilience related to
SMEs in Indonesia.
This systematic approach is applied to identify, select and evaluate relevant
literature. This systematic process is repeatable, objective, transparent, unbiased
and rigorous. The first process in this study was to conduct a full literature search
using We Do This because the Scopus database has a broader data coverage
than other databases, and SCOPUS also has stricter methodological criteria for
database coverage.
The keyword 'entrepreneurial resilience' is the basis for the search in the
Scopus database. In addition, by developing research around this flexibility, we
want to know how the literature has evolved from big theory to the latest research
data on the topic of SMEs, enabling us to make a comprehensive analysis of
research trends over time. In this case we also choose the highest ranked
category.
The progression of procedures and capabilities is expected to include
components that help create and implement mechanical, hierarchical, and market
developments. Knowing the details of business sectors, it is reasonable to
internationalize through various methods, dispatch, delegation, diversification,
joint pursuit and unusual direct speculation. Learn about the best advertising
methodology for improving business agility, taking into account human capital
research, thorough research, market research and actual regulation. Ability to
brand items and departments, e.g. media exposure. In terms of items and
improving capabilities, what matters is the specialty selections and types of item
usage, as well as department execution, as are the types of environment
adjustments that are possible to address market issues and, more specifically,
leads. Executive cadres are prepared as regular courses of the organization
courses with awareness of creating and guiding specific informal organizations
with accomplices and state organization through enhancement of specific
education.
In this data collection, the literature search is based on a search by Scopus
(www.scopus.com) from the subject area. To see the bibliometric relationship to
an object, an analysis of the subject of the document is required. Scopus made
a topic about the introduced algorithm and will be analyzed in depth.
This research, used search keywords, SMEs included in the title, abstract
and the source. This process is done to make sure that nothing is overlooked, not
37
only in articles that use the term Entrepreneurship Resilience. Initial search
results in the Scopus database with a search using the keyword Entrepreneurship
Resilience obtained 15.188 articles (n = 15188). The next step, we limit by the
similiarity criteria to the database search in Scopus to the keyword SMEs, in
Management & Business Science so that we get 1286 articles (n = 1286). To
make it easier for us to get references, we limit our search to articles that are
open access and related to pandemic condition in 2021 and 2022, and we
managed to get 59 articles (n = 59). Of these 59 articles, we will explore the
contents of the article as our reference for conducting a literature review. The
next step is to read and do the coding of all remaining articles.
Figure 1: Vosviewer Density Visualization

Source: (Self-Processed)
In this data collection, the literature review takes from the subject area
based on the search for Scopus (www.scopus.com). To see the bibliometric
relationship on an object, an analysis of the document subject is needed. Scopus
has provided a subject on the algorithm provided and will be analyzed in more
depth based on the VosViewer 1.6.1 version.
38
Identification of studies via databases and registers
Records identified from
Identification
Resilience
Databases (n = 15.188)
Records screened SMEs in

Records excluded**
Pandemic
(n = 13.902 )
(n = 1.286)
Screening
Reports sought for retrieval Reports not retrieved

2019-2022 (n = 417)
(n = 1.169 )
Reports assessed for Journal of

Business Research ‘
(n = 59)
Studies included in review

Included
(n = 59)
Reports of included studies
(n = 59)
Figure 2: PRISMA MATRIX

Distinctive features were the reason for building a model to promote

entrepreneurial resilience that fits the scale. Entrepreneurial Flexibility Abilities
specialization includes insights into the specialized competency, including
business techniques and settings. To include management regulations in the
organization, quantitative scope and identification of the main objectives and to
be able to record basic choices about the structure of the organization of
entrepreneurs in their various subjects. Therefore, the business visionary must
acquire skills to improve entrepreneurship, including the technology to be
adopted by the organization, additional elements and benefits, the corporate
image, operational frameworks, formal and informal design of the organization.
Result and Discussion

Individual approach with resilience tends to emphasize internal and external
phenomena. Resilience based on internal and external factors assumes that
generally it has emerged from birth as a biological factor or is acquired based on
historical, initiative. Perspective on individual resilience should be a major
contribution by understanding individuals in the fundamental aspect between
influencing or being influenced. The highlighted factors and models are the
development of resilience (Gölgeci et al., 2020). The reason is that individuals
will indeed become models of social actors by needing each other and giving
cause and effect to social reality.
39
Resilience Factors Related to SMEs Indonesia
Internal Factors Related to Resilience

Intelligence, decision making ability, and Practically concluding of the internal aspect
Instict for the main factor performance
External Factors Related to Resilience

Sales performance, product adequatte, and Implementing the sales networking and
relations improving product reputation
Figure 3: Empirical Found
In this article, we want to experimentally explore the range of perspectives

between modifying elasticity theory. We are interested in looking for flexibility in
SME product brokers because the broker is the spearhead of SME product
companies. It was found that SMEs are facing a crisis in the skills and
competencies of field workers - Essential Business (Sawalha, 2020). hey are
distinguished by the specific criteria for their employment. Anyone with basic
training can become an agent and start promoting and selling products. The SME
representative needs a strong and reliable company to keep improving the
performance of the company to remain competitive and developed. To have a
reliable marketing team, especially in the field of services, there is a strong need
and intelligence to educate the public, especially potential customers, about the
benefits of SME products. Indeed, representatives of small and medium-sized
enterprises face obstacles (Filimonau et al., 2020).
Findings related to internal factors related to individual resilience show that

not all things are supportive. The need for adaptation varies as well as the basic
assumptions built. The internal factor that is largely associated is attitude. Attitude
is a very important and crucial assumption. Attitude is the location of subjective
values in determining views and determining decisions. Furthermore, the
relationship that resilience comes from is the result of the development process.
Social constructivity has an effect on the development of the internal model.
Resilience practically shows that intelligence, decision-making ability, and
instinct.
Based on internal factors related to resilience, there are three findings,
namely attitude, development, and spirituality. Implementation of Entrepreneur
actor has an individual impact on the formation of morals, norms, and ethics.
When individuals work as Entrepreneur actor, of course, in general they form
40
internal resilience, namely attitudes (Fonseca & Azevedo, 2020). Attitude in

making decisions, every step is needed to think critically based on cause and
effect. The development process is focused on construction in terms of history or
work experience and then improved in job performance. Lastly, spirituality as a
positive form and avoiding negative by strengthening norms, ethics, and morals
(Cannavale et al., 2020).
This research is expected to benefit the development of human resource
This research is expected to benefit the development of human resource
management sciences, which are particularly related to performance theory.
These theories are closely related to the individuals in the organization, especially
the actor of SMEs in Indonesia product companies that drive the business.
Flexibility can help a company improve its performance so that it can also
compete with other companies by improving performance (Ding et al., 2020).
According to constructing a positive performance on an SME representative has
effects on positive motivation. The company's role is to provide external
incentives to companies with significant impact. In addition, this research is
expected to provide additional knowledge, namely the formation of individual
performance of agents of small and medium products, in which the individual
understands the situations that arise and can flexibly adapt his job as a
representative. In their role of flexibilization, both must adapt to the technological
developments that are currently developing. Performance theories are based on
positive psychology and positive performance. Performance is seen as a
response in circumstances where a person is exposed to a significant personal
threat, danger or harm to which he or she adapts positively; It does not lose its
normal function.
Theories of achievement are based on positive psychology and positive
performance. Perforamnce is seen as a response in circumstances where a
person is exposed to a significant personal threat, danger or harm that they
positively adapt; And it does not lose its normal function. According toVidmar et
al., (2020), the performance of individuals respond to adverse conditions by
recognizing and acknowledging their impact, and investing the time, energy, and
resources necessary to 'return' to equilibrium. In addition, flexibility allows
individuals to use setbacks as 'starting points'. At the same point of view from
Korsgaard et al., (2020), suggest that resilience plays an important role in
managing "positive stress" and that resilience can be described as an adaptive
response to negative and positive events, such as promotions or new
responsibilities in work.
The relativity of resilience is associated with external factors. The linkage of
external factors based on ecological processes with the expression of multi-level
social attachments. Social construction becomes an important role and actors
involved such as family, environment, and community. In this study, external
factors in the implementation of Entrepreneur actor are based on the importance
of the work community. The conception of society has norms on togetherness
with different cultures. Over time, society eventually became rural (Nurunnabi,
2020). Thus, individuals in the work community of course try to adopt new values
and then assimilate them with old models. This has implications for the use of
rural values and building resilience.
The relationship of the resilience theory variable with performance shows
41
that adaptive selling is analogous to working smarter, making plans to determine

the appropriateness of sales behavior and activities to be performed in future of
SMEs development (Medel et al., 2020). It shows that employees need a better
measure of sellers' ability to understand customers and shows that the most
promising way to develop formulas for sensing seller feedback is their ability to
identify customers. Cognitively, resilient engagement is introduced through
flexibility through motivation, as well as the ability to pick up on nonverbal cues.
Several etiquettes have been proposed to explain why salespeople or
employees interact more intelligently in an adaptive way. Examples include
additional learning for the sales force resulting in the accumulation of contextual
knowledge about the SMEs sales context That is, adaptation depends in part on
knowing how one's behavior is shaped and shaped by their interactions, which
requires mental preparation, planning, and a degree of self-efficacy with the
ability to change behavior in performance situations (Singh et al., 2021).
The main individual difference in this regard is self-control, which reflects
the degree to which people regulate their self-presentation by changing their
actions according to situational cues present in the interaction (Khan et al., 2021).
The functioning of SMEs resilience in sales interactions depends on the
assumptions and processes that occur in the minds of salespeople. However, the
research to date has used methods based only on verbal self-report. According
to Sharma et al. Advances in neuroscience have inspired recent research in
related fields, such as consumer behavior and economics, showing that mental
processes, despite their complexity and relative inaccessibility, are directly
studied (Huang & Farboudi Jahromi, 2021). The association with this study is the
first in marketing to test the validity of the new scale using neuroscience insights
combined with traditional methods. To achieve this goal, we developed a different
idea of neuroscience because this insight gives a different perspective on what
can make a salesperson successful in a sales pitch(Friday et al., 2021).
In turbulent times like the COVID-19 pandemic, resilience is a key feature
of any organization. According to G. D. Sharma et al., (2021), defines resilience
as “the ability of a system to withstand significant disruptions within acceptable
parameters of damage and recover within an acceptable period of time at
increased cost and risk.” In a business context, resilience describes the
characteristics inherent in organizations that can respond faster, recover faster,
or develop unconventional ways of doing business under greater pressure than
others. Important organizational characteristics of a resilient organization are
adaptability and flexibility in the context of organizational strategy. We propose
that flexibility is the most important aspect of a flexible SMEs performance, so
that salespeople can move their efforts and resources where they need them. As
in previous research, sales force is increasing in areas other than marketing. The
three sales force transformations (function, outsourcing/scope, and technology
adoption) discussed in the previous section have reduced the risk management
(Aidoo et al., 2021). When salespeople specialize in certain steps of the SMEs
sales process, they can't move to other steps in the sales process if demand
changes. Likewise, when sales processes are outsourced, it is not easy to
outsource steps because relevant expertise or intellectual property is no longer
present within the organization (Kumar & Kumar Singh, 2021).
The most important aspect of a flexible sales force is flexibility so that
42
salespeople can move their efforts and resources where they are needed.
Research to increase sales force has been conducted in areas other than
marketing (Cordeiro et al., 2021). The three resilience theory in internal sector
related to function, outsourcing/scope, and technology adoption discussed in the
previous section have reduced the problem of post global pandemic. When
employees specialize in certain steps of the sales process, they cannot move to
other steps in the sales process when demand changes. Likewise, when sales
processes are outsourced, it is not easy to outsource steps because relevant
expertise or intellectual property is no longer present within the organization.
Indonesia's current condition is on the defense side in a sustainable manner
in economic development after the Covid-19 pandemic. The future of the
country's economy after the Covid-19 pandemic has raised new problems such
as many crises in life (Samudro & Madjid, 2020). The Covid-19 pandemic has
attacked almost all economic sectors in Indonesia, from bottom to top (Barzilay
et al., 2020). Formed from reactions to past experiences related to information
from the environment to be able to describe what will happen in the future so as
to form plans and goals for the future (Zammuto et al., 2000). Most of those who
think that a country will experience a major crisis are post-pandemic because the
country is unable and difficult to rebuild circulation in the economic system long
before the Covid-19 pandemic (Noor et al., 2020).
2.2
Implementing Resilience by Small Medium

Entrepreneurship in Indonesia During COVID-
19 Pandemic
Related to
Resilience Theory
According to
Beureaucracy and Regulations
Effect to
SMEs Actor
Internal Factors External Factors
New Business Model in SMes

Indonesia on Post Global
Pandemic
Figure 4: Logical Framework

This structural change also gives importance to the wave of migration in
43
Indonesia even in the midst of the Covid-19 pandemic. The development of the
micro and industrial sector that takes advantage of the Covid-19 pandemic has
been able to support the individual economy but does not help the macro-scale
economy in Indonesia (Rahmadana & Sagala, 2020). The micro-enterprise sector
tends to be more of an individual group, so that business owners are entitled to
profits from these businesses without having to make a significant contribution to
the state. The state also plays a role in economic development during the
pandemic, but tends to be uneven due to the lack of statistical data and significant
structural changes in terms of business systems and economic output in each
region (Kuckertz & Brändle, 2021). Indonesia's economic development has been
carried out from generation to generation since the end of the monetary crisis in
1998 (Rahmadana & Sagala, 2020).
The elements that support the development of the Indonesian economy are
the foundation of the economic system in creating a sustainable economy and
running continuously following state conditions (Rahmadana & Sagala, 2020).
The main elements that support Indonesia's economic development, both
domestically and internationally, such as industrialization, international mobility,
and defense, are already in a vulnerable society (Tokarz et al., 2021). The
vulnerable group called Ulrich Beck in the Covid-19 pandemic has had a
tremendous impact both socially, politically and economically. The risk of a post-
Covid-19 pandemic feels unpredictable because individuals are currently saving
themselves as one of the most vulnerable groups in society (Pla-Barber et al.,
2021).
This extraordinary impact in the international world in the economic reality
after the Covid-19 pandemic will be very different due to the global economic
cycle which is slowly stopping and causing an economic depression (Miller,
2021). Predicting the future of a country has similarities to the post-war economic
depression and developing countries towards progress such as Indonesia are
countries that are vulnerable to economic depression (Ufua et al., 2021)The
occurrence of an economic depression caused the purchasing power of goods to
decrease and the economic cycle between business actors did not run, resulting
in the stagnation of the country's economy accompanied by high crime rates due
to difficult economic conditions (Noor et al., 2020).
The economic prediction after the Covid-19 pandemic with the status of
Indonesia having distributed vaccines to the public will enter an economic
recession and the process towards an economic depression. This is due to
uncertainty in the new society and exploitative industrialization (Wang & Yao,
2021). It is possible that countries experiencing economic recession will drive the
wheels of the global economy by creating new economic systems and
adaptations or applying renewable and cheaper energy. Industrial thinking in
viewing anthropogenics seems to be very low and short (Ratten, 2021). This
causes the community to be classified as vulnerable. Economic restructuring is
currently urgently needed by combining the old paradigm and the new paradigm
through the adoption of economic and trade models from other countries that are
considered to fit the classification. This alludes to the development of the lower
middle socioeconomic class because it will have the greatest impact.
In fact, Indonesia government and SMEs actor were able to ward off issues
and problems in the face of economic recession and economic depression.
44
Indonesia's economic system often changes with every change of state leader.
The biggest social transformation in Indonesia that began during the New Order
era resulted in overlapping social and class structures. A major criticism of our
current social transformation is felt by the existence of social inequality related to
(Madi Odeh et al., 2021). A simple example is the massive repatriation of
employees from major industries in Ind. onesia, job placements, and others.
Indonesia's socio-political views after the Covid-19 pandemic have made people
vulnerable to social resilience. The biggest fear is like formation in the New Order
due to the economic crisis and caused political chaos. Indonesia's social
resilience is currently very low with the added implications of the Covid-19
pandemic. There is an offer of concessions in overcoming social inequality that
has occurred in Indonesia's economic development after the Covid-19 pandemic.
The theory of resilience that emphasizes criticism in the excessive and
exploitative development of modernity in Indonesia can be balanced with
heterogeneous equations. The neoliberal economy that we have actually still
emphasizes on one group (Belhadi et al., 2021). Equity, group priority, and social
tolerance are needed to overcome the vulnerabilities that occur. Paradoxes that
occur in expectations and reality will enter the process of social transformation
experienced and enter the stage of institutionalization. The Indonesian
government has an obligation to be able to equalize and understand the level of
individual status as a community risk model (Purnomo et al., 2021).
Developing the expectations must have similarities with real implications in
reality. The paradoxical resistance to social transformation and modernity will be
a good one related to resilience in SMEs performance, especially as the
Indonesian government system adopts power distribution and class liberalization.
Furthermore, the realignment of power and politics needs to be done in general.
Relates to the distribution of power and group liberalization (Bechtsis et al., 2021).
The capability of the leader needs to be questioned in the face of social and
political distribution and transformation of the nation. State leaders must
subconsciously understand the scale of utilization of modernity development
(Vermiglio et al., 2021).
As a criticism of development by making government new market policies,
the government as a policy maker and regulator must be able to provide equitable
development in every region in Indonesia. Modernity is always associated with
urbanization (Bag et al., 2021). Excessive urban development forces the
narrowing of land and urban bias. Population accumulation in urban areas can
lead to high unemployment, homelessness and the emergence of crime rates due
to difficult economic conditions.The Covid-19 pandemic is claimed to be a
disease that arises from animals to humans and spreads rapidly throughout the
country even though there are no animals in the country. Rapid migration has
made Indonesia one of the countries affected by Covid-19. Related to S. Sharma
& Rautela, (2021), that the narrowing of land and urban applications led to this
pandemic. Although state and international agencies will then issue a statement
that the pandemic is over, it is unlikely that the disease will continue and further
pandemics are likely to emerge.
Likewise, Indonesia's economic development after the Covid-19 pandemic
sociologically requires equity on a long scale. In general, long-term development
begins with population distribution. Social inequality begins with regional
45
inequality due to urbanization and the influence of modernity. Even this unequal
development only benefits one city unilaterally. Unequal development is caused
by inequality in population. Domestic migration of the population in Indonesia has
proven to be heavily burdened in both urban and rural areas. The grouping of
groups between rural and urban areas is still integrated with the inequalities of
society within it. Social inequality, even though before the pandemic there was
still no equality in the divided society in Indonesia (Nandi et al., 2021). The post-
pandemic prediction belongs to vulnerable communities that domestic population
migration will worsen due to the highest urban affluence. Colonial domestic
migration in Indonesia will be the biggest issue because inequality does not only
occur in one region but also in the target area. Resources and decentralization
policies need to be emphasized more deeply with equitable large-scale
development plans (Kordela & Pettersen-Sobczyk, 2021). Since post-reform,
decentralization is still the domain of second-level regional development and the
view that centralized cities is still biased. The term Jawacentric still applies today
and most likely after the pandemic. Excessive resilience to industrialization and
exploitation of natural resources on a large scale has become a big thing.
The best issues and trends in human resource management towards
foreign workers (Mohammed et al., 2021). Government policies that seem to lead
to social mobility are still low. Expectations of employment and the service sector
still benefit urban areas. Post-pandemic development can be an opportunity to
form innovations and new governance models in adapting the rural economic
system. Systematic development and regional expansion in Indonesia can
develop well without the need for excessive industrial intervention (Baral et al.,
2021). As the object related to clothing, food, housing as basic needs can actually
be met without the need to over-import products from an international
perspective. Counterfeiting can be carried out but still following the process of the
global economy by massively increasing domestic logistics needs and leading to
export products and reducing the use of imported products. Production through
the use of natural resources in accordance with the integrity of improving the
human resources of the domestic community can become a new consensus
model in creating new economic models and solutions for the new global
economic cycle after the pandemic (Ramanathan et al., 2021).
Views based on community risk, capital, and emphasis on government
policies can be accumulated into a new economic development concept after the
Covid-19 pandemic (Ding et al., 2020). Utilizing China's economic development
model will provide a new solution as a recommended concept, namely the
Indonesian Consensus. The reforms have left a legacy of opportunities for
economic restructuring in the hope of creating sustainable and well-founded
economic growth and development. Post-reform political and economic
decentralization can be the first step to creating change if its impact and influence
is maximized. In the case of China, decentralization-based post-economic
restructuring in the post-Mao era has succeeded in leading China to significant
and sustainable economic growth and development.
Reflecting on the similarity of economic decentralization between Indonesia
and China, the development of an economic development foundation based on
optimizing local potential so as to create a comparative advantage in each region
in Indonesia is needed as a first step. The need to optimize the potential of the
46
post-reform decentralized system can be created by adopting China's

development model in the early Post-Mao era that relies on development
potential or defense resilience (Maalmi et al., 2021).
Resilience emphasizes the responsibility of local / regional governments
which in fact know and understand the potential of the region. Regional/regional
governments in the implementation process can apply protection mechanisms so
that they can continue to be oriented towards growth and development
(Cannavale et al., 2020). Protection of the domestic market is something that
needs to be implemented by the government so that the development process is
carried out before Indonesia opens and fully integrates its domestic market with
global competition (Dzingirai & Ndava, 2021). On the other hand, the economic
impact caused by the Covid-19 pandemic has made us aware that state
dependence is a risky problem in the event of an economic shock in the global
market. The market contraction caused by the obstruction of global trade routes
has even become paralyzed, in this case, to restore Indonesia's economic
conditions in the Post-Covid 19 era, it is necessary to optimize the potential of the
regions they have, first to keep the development created from happening.
accompanied by widening regional disparities (Castro & Costa, 2021).
The logic of market-oriented economic development needs to be balanced
by taking into account the variables of inter-regional development inequality. The
potential risk of widening development disparities between regions can actually
be minimized with resilience because each region can freely maximize its
regional potential, this is also supported by an economic and political
decentralization system that gives more authority to regional/regional officials.
However, resilience is not the final model of this development, this mechanism is
only the first step towards sustainable development. This is a necessary first step
because this mechanism can provide stimulation for the domestic and local
markets and increase market productivity so as to further increase the potential
and foreign investment (FDI).
Conclusion
The theory of resilience is very difficult to separate from the influence or
presence of actors who are members of an increasingly integrated global market.
As a first step towards more advanced development and market integration,
aesthetically and globally, the presence of the government and its intervention
through policy becomes an important variable. Resilience must be in a
complementary relationship. The integration of domestic and global markets as
one of the main components in the logic of this resilience theory needs to pay
attention to the risks that can arise as a result of pursuing full hyperglobalization
that we often encounter in today's development strategies. Resilience basically
opens up new opportunities for the domestic market to expand its market in the
global market. However, if this is not accompanied by previous strengthening and
development of domestic potential, disaster will occur.
The model of resilience theory occupies an important place in the marketing
and sales literature. Much research has focused on exploring the precursors to
sales force motivation. According to the seller's motivation for pursuit and the
resulting achievement is a function of the seller's efficiency or ability
(compensation and financial incentives, psychological incentives, organizational
and management factorsWith increasing competition from day to day, more and
47
more companies are trying to differentiate themselves from others. In situations,

the motivation of the salesperson plays a very important role The motivation of
the sales team was found in him Impact on salespeople and organizational
variables This research aims to analyze the results of resilience of the SMEs actor
from a salesperson's point of view. research first defines the framework used to
organize the research and second to provide an overview.
Indonesia as a country that has also adopted a decentralized economic
system and has also been affected by the Covid-19 economy must re-optimize
decentralization so that its development is based in rural areas which are
relatively stronger against economic shocks. On the other hand, this development
model can also create a strong local economic base and produce micro, small
and medium enterprises in international trade because each region is oriented
towards developing its potential. Basically, if we reflect on the case of China, this
development model is not the last model, but is the first step towards significant
and sustainable economic development and growth and encourages the creation
of post-Covid-19 economic recovery that has succeeded in providing a significant
economic contraction.
Bibliographic analysis uncovers that few components will influence the
connection between Entrepreneurship Resilience training and innovative goal like
relevant elements (public approach, social climate, culture), a person's
experience (character, family climate, loved ones support), and the activity of
Entreprising instruction (showing strategy, course setting). As far as close to
home foundation, most explores centre around the person's sex. A few
examinations dependent on the hypothesis of arranged conduct cEntre around
the psychological parts of people
In particular, this investigation examines the impact component of
Entreprising training on innovative goal from two ways of discernment and feeling;
it summed up the social intellectual hypothesis and self-guideline hypothesis to
show why Entrepreneurship Resilience instruction lifts understudies'
Entrepreneurship Resilience expectation. As per social psychological hypothesis
and self-guideline hypothesis, as an outside mediation, innovative instruction will
unquestionably affect singular discernment and feeling, which thusly will create
the relating Entreprising result. In this way, when understudies see an undeniable
degree of innovative instruction, they will in general have a significant degree of
Entreprising self-viability and energy, which further work on the Entrepreneurship
Resilience expectation. This examination adds to the Entreprising training writing
by introducing a coordinated understanding of the relating research.
Third, this investigation broadens our comprehension of how
Entrepreneurship Resilience expectation affected by collaboration and people's
inspirational components during the cycle of Entreprising instruction. The
aftereffects of this investigation increment to consensus of business venture
instruction examination and reactions to the call for more innovative training
research in various viewpoints.
The impact component of innovative training proposed in this paper insists
the significance of cooperation in the educational plan. Simultaneously,
educators ought to develop understudies' Entrepreneurship the instructing
interaction.
48
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53
The coffee charm: understanding the relationship between

product design dimensions and Willingness to buy from
Starbucks
Received: February 7th, 2023; Accepted: February 28th, 2023; Published: March
21st, 2023
Abstract
The growth of the hospitality industry calls for further understanding. The coffee
shop sector is a large part of the hospitality industry in Indonesia, considering
coffee consumption, exports, and interest. This study uses PLS-SEM to assess
the relationship between product design dimensions in coffee shops and the
Willingness to buy using Starbucks as a case. A purposive sampling method
was utilized to gather respondents, that is, the customers of Starbucks and 119
respondents' data was used to test the hypotheses in this study. This study
found that symbolic design significantly affects WOM and Willingness to buy.
Functional design significantly affects WOM but not Willingness to buy. Lastly,
WOM affects Willingness to buy with the largest effect size out of all the
hypotheses. Coffee shops should consider the importance of product design
and strategizes accordingly. Future research should consider expanding on this
work with a consideration of this study's limitations. Coffee shops should
consider the importance of product design and strategizes accordingly.
Focusing on symbolic design can be a strategy worth considering for coffee
shops that emphasize brand and meaning as their value proposition. Future
research should consider expanding on this work with a consideration of this
study's limitations.
Keywords: Product Design, Willingness to Buy, WOM, Starbucks
Introduction
The hospitality industry is rapidly growing, with an estimated 4% growth
annually (Xu et al., 2022). The hospitality industry covers smaller sub-sector,
from the beverages sector, which includes businesses in restaurants, cafes,
pubs and quick-service/takeaways, to the accommodation sector (hotels),
transportation services, travel agencies, and attraction sites (Aynalem et al.,
2016; Hallak et al., 2019). In a developing country such as Indonesia, the
hospitality industry has immense potential, bringing positive impacts to the
locals, consumers, and the national economy. In 2019 alone, Indonesia
attracted 16.1 million tourists from across the globe, indicating the considerable
market potential for future growth of the Indonesian hospitality industry (The
Jakarta Post, 2020). This calls on the scientific community to complement the
potential with an adequate understanding of the market, especially on the buyer
or customer sides.
Research articles on the hospitality industry are rich, and researchers from
around the world are interested in the many facets of the hospitality industry.
Previous studies focused on sub-aspects such as consumer, supplier,
To cite this article: Ardiansyahmiraja, B., Rahayu, S. (2023). The coffee charm: understanding
27
the relationship between product design dimensions and Willingness to buy from Starbucks.
Manajemen dan Bisnis, 22(1), 27-34. DOI: 10.24123/jmb.v22i1.686
operational, or financial aspects of the hospitality industry. The present study

will focus on the consumer aspect of the hospitality industry, especially looking
at a particular sub-sector, the coffee shop sector in Indonesia. This is due to
how Indonesian are one of the largest coffee consumers and exporters
(Sarirahayu & Aprianingsih, 2018). On top of the growing number of
consumption and exports, the coffee trend in Indonesia has also been growing.
According to the data from Google Trends. The search for the word "Kopi", the
Indonesian word for "Coffee, has grown in the previous years. As shown in
Figure 1, there is a consistent yearly growth for Google searches.
88
83
78
72
69
55
50
34
24
22
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Figure 1. Google Trends Interest

Source: trends.google.com
This study tries to complete the growing interest in the coffee shop field,
focusing on the area of product design in which studies relating to it are limited.
This study utilizes Homburg et al. product design dimensions and relates them
towards Willingness to buy, giving theoretical contribution and practical
implications on the body of knowledge (Homburg et al., 2015). As a case study,
this study will use Starbucks, the world's most prominent coffee shop franchise.
Previous studies in Indonesia have put an interest in the coffee shop
market, shown by literature investigating topics ranging from customer
behaviour, business model analysis, and other topics (Adhi & Yunus, 2022;
Kasnaeny et al., 2013; Nurhasanah & Dewi, 2019; Rahardjo et al., 2019). The
product's design impacts many aspects, as the previous literature suggests.
According to Kumar et al., "product design is an important tool for driving
differentiation, creating value for both the consumer and the firm, driving
consumer preferences, and creating a sustainable competitive advantage
"(Kumar et al., 2015). Following Kumar et al. (2015) it is also suggested by Xia
et al. (2016) suggest that product design determines a product's success,
directly affecting the cost and revenue associated with the product (Xia et al.,
28
2016). Various dimensions and perspectives can be used to assess a product's

design. Researchers have tried to develop conceptual frameworks that can be
used to measure product design. Gilal et al. (2018) implemented a conceptual
framework developed by Homburg et al. to correlate product design dimensions
towards Willingness to buy electronic word-of-mouth (WOM) in the fashion
apparel industry (Gilal et al., 2018).
The present study intends to expand the scope of what Gilal et al (2018
have done and apply it to the hospitality industry, specifically in coffee shops.
This is due to how Gilal et al. (2018) have successfully applied the
conceptualization of Homburg et al. (2015) framework of product design in the
fashion apparel industry context. Furthermore, previous researchers have made
similar approaches in other settings, such as in furniture product design, hotel
booking, and online reviews (Baek & Ok, 2017; Barbaritano & Savelli, 2021;
Candi et al., 2017). These use of product design dimensions to answer many
marketing-related cases has also been reviewed by (Henseler et al., 2021),
which stated that "marketing theory needs to expand and re-evaluate the
inclusion of design as a critical concept," this statement is in line with the aim of
the present study.
In Gilal et al. (2018) model, three main components constitute product
design as a whole: aesthetic design, functional design, and symbolic design.
Functional product design refers to the functional aspect of a product: what a
product is designed to do. Even for a product with a higher emphasis on
aesthetics, functionality is still seen to be a significant predictor of Willingness to
buy. This is because the functional aspect of a product hints the specific needs
of customers (Cheah et al., 2015). Functional design can also trigger customer
response, this in turns could stimulate positive WOM (Xue, 2019). Aesthetic
design refers to the visual perception of a product's appearance. Aesthetic
design is able to influence Willingness to buy since it is a core aspect that
signals differentiation, even in an unknown brand (Reimann et al., 2010).
Visually appealing products are also encouraging customer to comments more
positively (positive WOM). Lastly, the symbolic design focuses not on the
product itself but on how it can communicate meanings, image, or status. The
fulfilment of customers' need for meaning, belongingness, and expression will
translate to their Willingness to buy since those are important psychological
needs (Gilal et al., 2020). Symbolic design which can also represent
uniqueness of a product has also been found in a previous study to have a
positive influence towards WOM (Hartono & Holsapple, 2019). The relationship
between these three dimensions of product design has been studied in previous
studies, relating it to both Willingness to buy and WOM (Baek & Ok, 2017;
Barbaritano & Savelli, 2021; Candi et al., 2017). This study also hypothesizes
the positive relationship between WOM and Willingness to buy as shown by
previous studies (Firman et al., 2021; Tajuddin et al., 2020).
Thus these three hypotheses are proposed (see also Figure 2)
H1a: Aesthetic design of a product positively affects Willingness to buy
Starbucks's product.
H2a: Functional design of a product positively affects Willingness to buy
H3a: Symbolic design of a product positively affects Willingness to buy
29
H1b: Aesthetic design of a product positively affects WOM.
H2b: Functional design of a product positively affects WOM.
H3b: Symbolic design of a product positively affects WOM.
H4: WOM positively affects Willingness to buy.
Figure 2. Research Framework.
Research Methods
This research uses a survey as an instrument to collect data. The
respondent in this study is limited to the consumer of Starbucks. The
questionnaire was distributed purposively to individuals who have consumed a
Starbucks product. Respondents who never buy a Starbucks product are
excluded from the data. An age filter was also a criterion for our study;
respondents should be at least 17 years old. The scales used in this study
follow the measures developed by Homburg et al. (Homburg et al., 2015).
Questions related to functional design include questions such as "Starbucks
brand is likely to perform well." questions related to aesthetic design include
"Starbucks brand is good-looking". Lastly, questions related to symbolic design
include "Starbucks brand would be helpful to distinguish me from the mass".
Aside from these questions, demographic questions were also asked. The
hypothesis is tested using SmartPLS, which utilizes the PLS-SEM estimation
method.

Before analyzing the hypotheses, Table 1 illustrates the demographic of
the respondents from the collected data. A total of 119 respondents was
gathered from the distributed questionnaire. Male dominates the respondents,
with 73.1% of the total respondent. The majority of the respondents have
Bachelor's degree as their latest education. Students dominate the
demographics of this study, and lastly, monthly expenditure from the
respondents is dominated by respondents that spend 3 million to 5 million IDR.
30
Table 1. Respondent's Demographic

Frequency Percentages
Gender Male 87 73.1%
Female 32 26.9%
Education Bachelor's degree 108 90.8%
High school 11 9.2%
Employment Civil employee 2 1.7%
Employed 2 1.7%
Students 114 95.8%
Self employed 1 0.8%
Monthly expenditure < IDR. 3.000.000 28 23.5%
> IDR 5.000.000 16 13.4%
IDR3.000.000 – Rp. 75 63.0%
5.000.000
After describing the demographic, an assessment of the model is required

before the hypothesis testing. Table 2 shows the result of reliability and validity
measure.
Table 2. Construct Reliability and Validity

Cronbach's Outer
Variable Indicators CR AVE
α Loadings
Aesthetic design AES1 0.917
0.668 0.853 0.744
AES2 0.804
Functional design FUNC1 0.801
FUNC2 0.650 0.805 0.582 0.634
FUNC3 0.839
Symbolic design SYM1 0.880
0.673 0.859 0.753
SYM2 0.855
Willingness to buy WTB1 0.861
WTB2 0.686 0.828 0.621 0.860
WTB3 0.618
eWOM EWOM1 0.636
EWOM2 0.646 0.808 0.588 0.809
EWOM3 0.839
The outer loadings of each indicator surpass the required value of 0.5. The
lowest loadings is from the Willingness to buy variable (WTB3 = 0.618), and the
highest loadings is from the aesthetic design variable (AES1 = 0.917). Each
variable also shows enough adequate construct reliability and convergent
validity indicated by the Composite Reliability (CR) measure and Average
Variance Extracted (AVE) measure, as shown in Table 2. Since indicators and
construct surpasses the requirements, hypotheses testing can be conducted.
Fig 2 shows the results of the hypothesis testing.
31
Figure 3. Hypothesis testing results.
From Figure 3, four out of seven hypotheses are accepted. This result is
interesting since coffee shops, especially Starbucks, might consider aesthetics
one of the most important aspects of their product design. However, this study
has found that the relationship between aesthetic design and Willingness to buy
and WOM is non-existent. Functional design significantly affects WOM with an
effect size of 0.164 and significant at p = 0.080. The result shows that functional
design does not affect Willingness to buy, contrary to the result from the
previous study. Symbolic design significantly affects both Willingness to buy
and WOM. Symbolic design affects Willingness to buy with an effect size of
0.210 and significant at p = 0.030. Symbolic design also affects WOM with an
effect size of 0.359 and significant at p < 0.001. Lastly, WOM affects
Willingness to buy with the largest effect size of 0.515 and significant at <0.001.
The rising trends of coffee shops should be accompanied by market
understanding in order to achieve ideal industry growth. The result of this study
implies that coffee shops should understand how important product design is in
their effort to increase sales. Focusing on the right aspect of product design can
also be very important for coffee shop businesses. Emphasizing design on
functionality and symbolism can be the right strategy to drive customers'
Willingness to buy, especially for coffee shops that have value proposition
specific to their brands and product. A previous study has also noted the
importance of symbolism in Starbucks, not just in terms of product design but
also in terms of brand symbolism (Dalal & Aljarah, 2021). In a previous study,
the relationship between aesthetic design and Willingness to buy is also weak
(Candi et al., 2017), indicating that aesthetic design has a lower effect
compared to functional and symbolic design. The other rejected hypothesis,
which is the relationship between functional design and Willingness to buy, is
also apparent in a previous study by Baek and Ok (2017). An argument for the
rejection of the hypothesis is functionality can be seen to have more utility than
the design aspect of a product. However, functional design still affects
Willingness to buy indirectly through the WOM variable. The rest of the
hypotheses are consistent with the literature reviews, especially with the study
32
conducted by Gilal et al (2018) which provide the present study the theoretical
foundation.
The present study adds to the growing literature on the coffee shop
industry and the body of knowledge on product design and its role in shaping
customer preferences. Theoretically, this study contributes by utilizing Homburg
et al. framework and expands the framework by hypothesizing the relationship
between WOM and Willingness to buy, which this study found a positive
relationship in the hypothesized relationship.
Conclusion
This study examines the relationship between product design and
Willingness to buy in coffee shops using Starbucks as a case study. Using PLS-
SEM, this study founds that out of the three dimensions in product design, two
significantly affect Willingness to buy, which are functional and symbolic design.
This study contributes by theoretically strengthening the product design
dimensions developed by Homburg et al (2015) and expanding the application
of product design dimensions in the hospitality sector. Three of the seven
hypotheses are rejected: the relationship between aesthetic design towards
Willingness to buy and WOM and functional design to Willingness to buy. There
are limitations in this study, first related to the demographic imbalance due to
the purposive sampling method, and second the use of a particular brand which
can limit result generalization. Future studies should employ the same or
improved approach using different cases and scenarios, such as in coffee
shops with different value propositions than Starbucks or in different markets,
such as in the cosmetics industry. Exploring product dimensions and their
applicability in different settings, such as employing non-design variables (e.g.
quality dimensions), can be insightful for further understanding in the product
design field.
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34
Analyzing the measurement of employee performance with

human resources scorecard and AHP
Happy Wanda Aisyah, Didi Samanhudi
Faculty of Engineering, UPN “Veteran” JawaTimur, Surabaya, Indonesia
Corresponding author: Happy Wanda Aisyah, wandaciel7@gmail.com
Received: February 1st, 2022; Accepted: January 29th, 2023; Published: March
21st 2023
Abstract
The Present development of globalization is improving and having an impact on

the higher rate of business competition. An Employee is one of the biggest
factors for the company development, therefore it is important to assess the
employee performance for the company's success. This research aims to
analyze the measurement result of the employee performance using the human
resource scorecard and analytic hierarchy process. The data was obtained
through a questionnaire that was distributed to 25 employees in heavy
equipment rental department on PT. Surya Trias Gemilang Surabaya,
conducted a data adequacy test, consistency test on the questionnaire, and
continued with the AHP weighting. The result showed that the company
experienced a decrease in employee performance from a financial perspective
which means the company needs special attention from a financial perspective.
The company needs to discover the utilization of net income obtained by the
company to increase effectiveness for using company assets.
Keywords: human resources scorecard, analytic hierarchy process, employee
performance
Introduction
The development of globalization is improving and affects a higher level of
business competition, and many factors affect business growth due to
customer, product, demographic and other factors as well as human resource
factors (Costa & Negoro,2021). The quality of human resources is one of the
factors that influence the productivity improvement of the performance of an
organization or institution (Setyadi, 2018). Whoever manages the organization
will cultivate resources to achieve the company's goals. (Sundari,2019). This
forces the business unit to outperform competitors by optimally increasing
operational efficiency. The success of the company is not only measured from
the business plan but also the management and measurement of human
resources (Badriyah, 2017). Performance measurement is the process of
evaluating the goals and progress of human resource management for the
production of goods and services, including information about the effectiveness
and effectiveness of measures to achieve the company's goals and objectives
To cite this article: Aisyah, H.W., Samanhudi, D. (2023). Analyzing the measurement of 54
employee performance with human resources scorecard and AHP. Manajemen dan Bisnis, 22(1),
54-62. DOI: 10.24123/jmb.v22i1.592
(Pratama & Ismail 2018). The performance of employees in an organization can

be evaluated based on the quantity or quantity they provide individually and
collectively, and on the quality or quality of their work (Abdurrahman, 2017).
Measuring performance of employee is very important. Because of make
excellent employee professional quality, the company needs to lead the
business activities and achieve the desired goals (Fibriany, 2019).
PT Surya Trias Gemilang was established in 2017. PT Surya Trias
Gemilang provides heavy equipment for sales, purchases, and rent According
to information obtained from the Chief Operating Officer, the company
succeeded in leasing 90 heavy equipment in 2020, but there is 29.13% of the
total heavy equipment cancellation. The number of heavy equipment
successfully rented from 2021 until August also decreased by 22.45%
compared to the previous year. The decline experienced by the company was
caused by the decrease in employee motivation, coordination between each
other employees, and fastness in administration service and the company’s
employee performance measurement only considers the financial aspect.
Therefore, the company needs to improve and conduct comprehensive
performance measurements on employees and analyze the results of these
performance measurements to choose what factors should be improved by PT.
Surya Trias Gemilang Surabaya with Human Resources Scorecard (HRSC) and
supported by the Analytical Hierarchy Process (AHP).
Human Resources Scorecard is known as ability to design and implement
strategic personnel measurement system and become an important
measurement tool for the companies use to carefully design and implement
more effective human resource strategies (Ermayanti, 2017). Analytical
Hierarchy Process (AHP) can determine Priorities For each criterion and
alternative, it is necessary to do pairwise comparisons (Lorisa &Olyvia, 2017).
This research is also based on the results of research by Sahaya & Wahyuni
(2017), the research was conducted at a manufacturing company. The problem
in this research is caused by frequent absences of employees at work, which is
an example of a lack of motivation for employees to word and the lack of a
career path is one of the problems with poor employee performance. If this
situation continues, it will affect the productivity of the company. The indicators
used in this research are employee cost, increase employee responsibility,
Number of delays in giving salary, after measuring employee performance using
human resources scorecard, we found that the financial perspective was the
lowest. Research by Welan et al. (2019). The research was conducted by a
sales company. The company has never used the human resource scorecard
method before so this research will be using the human resource scorecard
method. The indicators used in this research are regarding the leadership
process, increasing profitability, customer satisfaction and etc. The result found
that growth and learning prospects are the most influential criteria followed by
internal business process perspectives, financial perspectives, employee
perspectives, and company performance that need more improvement.
Based on these studies, the researcher wants to know how to measure
employee performance at PT. Surya Trias Gemilang. Measurement concept is
important for companies to improve employee performance and follow
developments and compete to advance and maintain the company's survival
55
and this research is important to analyze employee performance measurement

using the Human Resources Scorecard and AHP methods at the said company.
The research was conducted on service companies and focused on renting
heavy equipment. The indicators used in this study were selected based on the
conditions and key factors that support the productivity of the company's
employees. In addition, the indicators used have been adjusted to what the
company needs to survive in the current pandemic.
Research Methods
In this study, the subjects selected were employees of the heavy
equipment rental department of PT.Surya Trias Gemilang. There are 25
employees in this department. Since the department only has 25 employees,
this research takes all the population as a sample. The method used in this
research is questionnaire based on Human Resources Scorecard. Human
resources scorecard is integrated with Analytical Hierarchy Process which aim
to determine the criteria weight and priority scale improvement of performance
indicator (Nasution & Tembiring, 2019).
According to Mahendra (2020) the human resources scorecard aims to
measure whether the human resources within the company are in line with the
goals set by the company or not. This method was selected for the study
because the human resources scorecard can raise awareness of the outcome
of human investment decisions and this measurement method is important for
Human Resources managers to face challenges in the future (Fariz&Tutik,
2018). The measured data from 4 perspectives are mainly about the financial
perspective, consumer perspective, internal business perspective, and growth
and development perspective.
1. Financial perspective is implementation, and strategy of the company has
contributed to the company. Each department of the company is
responsible for the financial condition of the company.
2. Customer perspective, the company needs to have a good relationship with
the customer's consumer. Good relationships with customers have a
positive impact on the company. The implications of consumer relationships
are that a company's reputation in the market is well known for its great
bargaining power.
3. Internal business process perspective aims to identify each process to be
executed and to develop work measurement methods that enable control
processes. You can improve and maintain the company's own
performance.
4. Growth and development perspective, the employee learning process is
sustainable as the workplace experience increases. If your organizational
culture supports process learning, you can maximize process learning
(Sahaya & Wahyuni, 2017).
Key performance indicators are parameters that serve as a medium for
measuring performance within a company (Ulfa&Ridwan, 2015). Key
performance indicators can determine a company's success or failure in
achieving the set goals and determine the success of activities, organizational
development and activities (Rahman, 2020). Key performance indicators of the
four perspectives in this research can be seen from the following table:
56
Table 1. Key Performance Indicator by Each Perspective

Perspective Key Performance Indicator
Financial Perspective Employee cost
Enhancement in company profit
Effectiveness for using company asset
Customer perspective Customer Retention
Customer Satisfaction
Number of Complain
Number of New Customer
Internal Business perspective Coordination between The Boss and the
employee
Fastness in administration service
Quantity of the computerized data
Growth and development perspective Amount and type of employee training
Percentage of employees who understand
about heavy equipment rental
Percentage of employees who have skills in
technology and information systems
The research begins with giving a questionnaire to employees of PT.

Surya Trias Gemilang Surabaya using a paired comparison questionnaire. After
the questionnaire has been collected, the questionnaire will be tested for
adequacy and consistency test to determine whether the data is sufficient, can
be processed further, and whether the questionnaire is consistent. According to
Azwar (2011), the adequacy data test formula is given as:
𝑍𝑎/𝑧 𝑆
N’ ≥ ( 𝑒 )
In this case: N’ = Total of adequacy data, Za/z = The normal probability

distribution, S = confidence level, e = degree of accuracy.
According to Sugiyono (2012), the consistency test formula is given as :
λ maks−n
CI =
𝑛−1
In this case CI = Consistency Index, and n = amount of element
𝐶𝐼
CR =
𝐼𝑅
In this case: CR = Consistency Ratio, CI = Consistency Index and IR =
Index Random Consistency.
According to Zaini&Suryadi(2020), The Analytic Hierarchy Process (AHP)
is a multi-criteria evaluation approach for compiling and analyzing decisions,
allowing you to select sub-criteria for measurement accuracy and evaluation. At
AHP, decisions involve key performance indicators with respect to the use of a
survey involving expert respondents who know the company and understand its
goals and objectives comparing weighted priorities. Start by comparing two key
performance indicators then weighing, the results of the weighted scores can be
used as a scale for employee performance. The criteria for measuring
employee performance are:
1. For a score of ≤ 1.8, it means that the employee's performance is very
low.
2. For a score of ≤ 2.6, it means that the employee's performance is low.
57
3. For a score of ≤ 3.4, it means that the employee's performance is

average.
4. For a score of ≤ 4.2, it means that the employee's performance is high.
5. For a score of ≤ 5.0, it means that the employee's performance is very
high.

The data used in this research were obtained through observation and
questionnaires compiled and filled in by 25 employees at PT. Surya
TriasGemilang Surabaya in heavy equipment rental department, all the
questions are valid, and got the following results:
1. Financial Perspective
Table 2. Weighted Score Comparison in Financial Perspective 2020
Key Performance Indicator Score Weight Weighted Score
Employe cost 3 0,5246 1,574
Enhancement in company profit 3 0,3337 1,0012
Effectiveness for using company assets 2 0,1415 0,283
Total 2,858
As seen from the results in table 2, a financial perspective employee

performance measurement in 2020. Effectiveness for using company assets
gets the lowest weighted score of 0.283. Employee cost got the highest
weighted score of 1,574. In the final result, the score is 2.858 which indicates
average for the employee's performance from a financial perspective.
Table 3. Weighted Score Comparison in Financial Perspective 2021

Employee cost 3 0,5246 1,574
Enhancement in company profit 2 0,3337 0,667
Effectiveness for using company assets 2 0,1415 0,283
Total 2,524
As seen from the results in table 3, a financial perspective employee

performance measurement in 2021. Effectiveness for using company assets
gets the lowest weighted score of 0.283. Employee cost got the highest
weighted score of 1,574. In the final result, the score is 2,524 which indicates
low for the employee's performance from a financial perspective.
2. Customer Perspective
Table 4. Weighted Score Comparison in Customer Perspective 2020
Customer Retention 3 0,62084 1,8625
Customer Satisfaction 3 0,17845 0,5353
Number of Complain 2 0,12142 0,2428
Number of New Customer 3 0,079274 0,2378
Total 2,8785
As seen from the results in table 4, a customer perspective employee
58
performance measurement in 2020. Number of New Customer gets the lowest

weighted score of 0.283. Customer Retention got the highest weighted score of
1,574. In the final result, the score is 2,8785 which indicates average for the
employee's performance from a customer perspective.
Table 5. Weighted Score Comparison in Customer Perspective 2021

Customer Retention 4 0,62084 2,4833
Customer Satisfaction 3 0,17845 0,5353
Number of Complain 3 0,12142 0,3642
Number of New Customer 2 0,079274 0,1585
Total 3,5415
As seen from the results in table 5, a customer perspective employee

performance measurement in 2021. Number of New Customer gets the lowest
weighted score 0,1585. Customer Retention got the highest weighted score of
2,4833. In the final result, the score is 3,5415 which indicates high for the
employee's performance from a customer perspective.
3. Internal Business Perspective

Table 6. Weighted Score Comparison in Internal BusinessPerspective 2020
Coordination between The Boss and the
2 0,6686 1,3373
employee
Fastness in administration service 3 0,2431 0,7293
Quantity of the computerized data 3 0,0882 0,2646
Total 2,3313
As seen from the results in table 6, an Internal Business perspective

employee performance measurement in 2020. Quantity of the computerized
data gets the lowest weighted score 0,2646. Coordination between The Boss
and the employee got the highest weighted score of 1,3373. In the final result,
the score is 2,3313 which indicates low for the employee's performance from an
internal business perspective.
Table 7. Weighted Score Comparison in Internal BusinessPerspective 2021

Coordination between The Boss and the
3 0,66869 2,00609
employee
Fastness in administration service 2 0,24310 0,48621
Quantity of the computerized data 3 0,08820 0,26460
Total 2,7568
As seen from the results in table 7, an Internal Business perspective

employee performance measurement in 2021. Quantity of the computerized
data gets the lowest weighted score 0,2646. Coordination between The Boss
and the employee got the highest weighted score of 2,00609. In the final result,
the score is 2,7568 which indicates average for the employee's performance
from an internal business perspective.
59
4. Growth and Development Perspective

Table 8. Weighted Score Comparison in Growth and Development Perspective
2020
Amount and type of employee training 3 0,6333 1,90003
3 0,2604 0,7814
2 0,1061 0,2123
Total 2,8936
As seen from the results in table 8, a growth and development

perspective employee performance measurement in 2020. Percentage of
employees who have skills in technology and information systems gets the
lowest weighted score 0,2123. Amount and type of employee training got the
highest weighted score of 1,90003. In the final result, the score is 2,8936 which
indicates average for the employee's performance from a growth and
development perspective.
Table 9. Weighted Score Comparison in Growth and Development Perspective

2021
Amount and type of employee training 3 0,6333 1,90003
3 0,2604 0,78149
4 0,1061 0,42462
Total 3,10615
As seen from the results in table 9, a growth and development

perspective employee performance measurement in 2021. Percentage of
employees who have skills in technology and information systems gets the
lowest weighted score 0,42462. Amount and type of employee training got the
highest weighted score of 1,90003. In the final result, the score is 3,10615
which indicates average for the employee's performance from a learn and
development perspective.
Table 10. Repair Recommendations for Companies

No Perspective Repair recommendation
1 Financial Discover the utilization of net income obtained by the company
Perspective to increase Effectiveness for using company assets
2 Customer Conduct regular evaluations of customer service, satisfaction,
Perspective and complaints.
Improve employee communication skills with customers for
quickly responding to customer requests and complaints.
Provide a form or suggestion box for customers who want to
write complaints or suggestions that are good for the company.
3 Internal Maintain coordination between boss and employees and
Business appreciate every employee's work, so that employee
Perspective productivity and performance for the company will also
60
increase.
The company is recommended to improve facilities regarding
systems for data and administrative processes so that
employees also feel comfortable.
4 Growth and Providing training is needed for employees so that employees
development have the skills and can-do better work to serve customers.
perspective
Conclusion
This research aims to analyze the measurement result of the employee
performance using the human resource scorecard and analytic hierarchy
process. The results found that the weighted score for each of the last 2 years
perspective was 2.858 and 2.524 for finance, 2.8785 and 3.5415 for customers,
2.3313 and 2.756 for internal business, 2.8936 and 3.10615 for growth and
development. So, the company needs special attention on the financial
perspective because of the decreased employee performance.Based on the
results of each perspective. To improve the company's performance starting
from the financial perspective, discover the utilization of net income obtained by
the company to increase effectiveness for using company assets. From the
customer perspective, the company should continue to maintain and improve
what has been implemented and increase employees' communication skills with
customers, respond to customer requests and complaints quickly, and provide
opportunities for customers to give suggestions for the company. From the
internal business process perspective, the company can improve facilities
regarding the system for data and administrative processes. Meanwhile, from
the perspective of learning and growth, the company should provide training or
increase employee skills in required fields such as understanding heavy
equipment and expertise in information systems.
Acknowledgments
Thank you very much to Fernanda, Nadira, and Dyah who helped me in
completing the research and A big thanks to the Department of Industrial
Engineering.
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Jurnal Manajemen dan Bisnis, Volume 22, No 1, (March 2023)
Analysis of innovation readiness level in SME exporting crafts

sub-sector on furniture in Yogyakarta
Sugeng Santoso, Lisa Safirah Bella Donna, Indah Kayani,

Imanuel Herdaru Cahyanugraha, Derri Arfiandi, Djudjuk Aryati
Faculty of Economics and Business, Mercu Buana University, Jakarta, Indonesia
Corresponding author: Sugeng Santoso, sugeng.santoso@mercubuana.ac.id
Received: November 27th 2021; Accepted: January 24th 2023; Published: March
21st 2023
Abstract
The creative economy of the craft sub-sector is present to make a significant

contribution to Indonesia's economic development through the creation of a
positive business climate. The value of furniture exports in Indonesia continues
to experience a positive increase from 2016 to 2020. This study aims to identify
and analyze the level of readiness for innovation and strategy for furniture craft
SMEs that have unique products to increase productivity, competitiveness, and
export. This study uses a qualitative approach with an interpretive paradigm and
case study design. The key informant is the owner of the CV. X. The researcher
conducted a survey and interviews using the IRL (Katsinov) and TKT to explore
and analyze the self-assessment of IRL and TKT. The results of this study
indicate that CV. X shows that the self-assessment results meet Katsinov level
3 and TKT level 9. Based on the results of the self-assessment Katsnov 4 with a
value of 78,18%, to fulfill it, efforts need to be made including: Improving
ecosystem support for the adoption of technology products and innovations for
the development of products desired by the market, improving the management
of cooperation including existing collaborations and increasing the application of
risk management.
Keywords: craft, furniture, IRL (Katsinov), strategy, export.
Introduction
The export value of Indonesia's non-oil and gas industry continues to show
its best performance from year to year. Although in 2019 it experienced a
decline because the Chinese government announced the first case of death
caused by Covid-19 spreading to various countries. The Covid-19 case has hit
the world. The Covid-19 pandemic has forced China and several countries to
implement a lockdown. However, this condition can benefit Indonesia because
Indonesia's competitor countries have implemented a lockdown which resulted
in 2020 the value of Indonesia's non-oil exports again showing positive growth.
Alhusain (2020) stated that Indonesian exports, especially non-oil and gas,
were able to show good performance amidst the pressures of the Covid-19
pandemic (Santoso et.al., 2020a).
To cite this article: Santoso, S., Donna, L.S.B., Kayani, I., Cahyanugraha, I.H., Arfiandi, D., 63
Aryati., D.. (2023). Analysis of innovation readiness level in SME exporting crafts sub-sector on
furniture in Yogyakarta. Manajemen dan Bisnis, 22(1), 63-79. DOI: 10.24123/jmb.v22i1.585
The stability of the value of Indonesia's non-oil and gas exports is

influenced by the creative economy. The picture above shows that fluctuations
in the value of exports in the creative economy can still be said to be stable in
the range of 19-20 US$ billion per year. Bappenas (2020), Economic
development in the next five years is directed at increasing economic resilience
as indicated by the ability to manage economic resources and use these
resources to produce goods and services of high added value to meet the
domestic and export markets (Santoso et.al, 2021a; 2021b). Increasing
economic value added through the acceleration of 1) agro-fishery industry; 2)
maritime; 3) industry; 4) tourism; and 5) creative and digital economy.
The creative economy is one of the concepts of developing the economic
sector that does not only depend on the potential of natural resources but also
prioritizes aspects of the quality of human resources (Andrea & Santoso 2020;
Rian & Santoso, 2022) who have quality and creativity in optimizing the
potential of resources to provide added value to the economic sector and
overall well-being (Riswan, 2018). In Indonesia, the creative economy exists to
make a significant contribution to Indonesia's economic development through
the creation of a positive business climate.
The agency for Creative Economy of the Republic of Indonesia (BEKRAF
RI) strengthens and protects the works of Indonesian artists. Rosiadi et al.
(2016: 6), the role of the creative economy sector is considered increasingly
significant to support Indonesia's economic growth in the future
(Kemenparekraf: Infografis, 2021). The Ministry of Tourism and Creative
Economy has established seventeen creative industry sub-sectors in Indonesia.
One of these sub-sectors is a craft. In this case, the Ministry of Tourism and
Creative Economy is responsible for managing the craft sub-sector.
Figure 1. The Value of Non-Oil and Gas Exports and Indonesia's Creative
Economy (In US$ Billion)
Source: Data processed from the Central Statistics Agency & Kemenperin 2020
Indonesia has a strategic location, of course, providing its benefits for local
artisans and craft craftsmen. Not only rich in raw materials but the different
landscapes on each island result in the emergence of a diversity of flora and
fauna which later becomes a source of inspiration in making works by
64
craftsmen. Every work of craft artists represents the identity of each region. So
that it gives color to the very diverse Indonesian culture.
Crafts is one of the sub-sectors that characterizes the Indonesian nation
and is very close to the tourism industry and the creative economy. The Ministry
of Tourism's Data and Information System Center (2020) explains craft (craft) is
part of applied art which is a meeting point between art and design originating
from traditional heritage or contemporary ideas whose results can be in the form
of works of art, functional products, ornamental and decorative objects, and can
be grouped based on material and exploration of technical tools. used, and from
the thematic products.
In Indonesia, many craft businesses have successfully marketed their
products to foreign markets. For consumers, the concept of handmade
handicraft products made in Indonesia is no longer in doubt. Thus, craftsmen
take advantage of this as an added value so that their products are marketed at
a higher price.
The manufacturing industry, especially the wood furniture industry, has
long been recognized as a labor-intensive industry and absorbs many workers
(Santoso et.al., 2021c). The development of this industry is directed at
industries that produce high-value-added products, and are globally competitive
and environmentally friendly. Until now, the wood furniture industry is still an
industry that attracts a lot of interest from both local and international
entrepreneurs to continue to produce it because the value of its products is
quite promising, and seeing the production opportunities that are increasing day
by day (Santoso et.al., 2022)
The value of furniture exports in Indonesia continued to experience a
positive increase from 2016 to 2020. During these five years, the increase in
furniture exports in Indonesia reached US$53.3 million. Export Micro, Small,
and Medium Enterprises (MSMEs) are faced with strategic issues covering
aspects of raw materials, technology, markets, financing, human resources, and
regulations. To maintain and/or improve positive performance in today's global
competition, business actors must find their way or uniqueness in their products
to gain a competitive advantage. One way that can be done by business people
is to use innovation (Santoso et.al., 2020b).
The furniture industry is quite in demand by entrepreneurs, startups, and
business people in general. This is because the furniture business promises a
fairly large profit. According to Agustina (2019), the creative industry needs to
be developed in Indonesia for several reasons. First, it can make important
economic contributions such as increasing employment, increasing exports, and
contributing to GDP. Second, create a positive business environment that has
an impact on other areas. Third, build the image and identity of the country as
tourism, a national symbol, and build a cultural heritage and local values.
Fourth, rely on renewable resources such as science and increase creativity.
Fifth, innovation and creativity are the competitive advantages of a country.
65
Figure 2. Furniture Exports 2016-2020

Source: DataIndonesia.id (2021)
The furniture industry is an industry that processes raw materials or semi-

finished materials from wood, rattan, and other natural raw materials into
finished goods in the form of furniture that has higher added value and benefits.
The wood processing industry is divided into two groups, namely the upstream
wood processing industry group, and the downstream wood processing industry
group. The upstream wood processing industry group is the primary wood
processing industry, namely the industry that processes logs into various wood
sorts, while the downstream wood processing industry group is an industry that
produces wood products, including dowels, molding, doors, windows, wood
flooring, and the like.
The furniture industry must maintain the quality of its products because
consumers will like quality and good quality products (Santoso & Mayrifka,
2019). Consumer satisfaction with a product is not only with a low price,
attractive shape, tantalizing volume, and a better physical appearance, but also
a product that offers a better value for benefits than its competitors as well as
improvements to other attributes of the physical product that make consumers
be m satisfied (Putra et al., 2019; Santoso & Mayrifka, 2019; Adhi & Santoso,
2021)
Business actors who innovate in this writing are MSMEs of wood
processing crafts. Innovations through the creativity of Indonesian human
resources carried out by SMEs in the craft sector for used wood are still
possible to be processed into innovative products with economic value. The
innovative furniture products produced by Indonesian MSMEs are part of the
handicraft export.
Several previous studies are used as a reference in this study. Appendix 1
shows the state of the art of this research. However, this research has several
novelties and advantages, including research related to crafts, innovation in the
use of used wood that is suitable for use and added value, exports (fulfillment of
standardization), and combination methods. In this regard, this study analyzes
the level of innovation readiness in the Craft sub-sector SMEs to compete in the
export market. The purpose of this study is to identify and analyzes the level of
66
innovation readiness and strategies for furniture craft SMEs that have unique
products to increase productivity, competitiveness, and export.
Research Methods
This study obtained primary data sources (primary data) and secondary
data (secondary data) using a qualitative approach (Uma & Bougie, 2017: 130),
saying that primary data refers to information obtained directly (first hand) by
researchers related to interest variables for the particular purpose of the study.
Secondary data refers to information gathered from existing sources. The
paradigm in this research is the interpretive paradigm (Sugiyono, 2018:549),
qualitative research is based on interpretive philosophy because in looking at
the symptoms of qualitative research, it must first interpret the data found. (Rian
& Santoso, 2022). The purpose of the interpretive paradigm is to analyze social
reality and how it is formed. While the research design is in the form of case
studies that explore a specific case as a research problem, then specify a
specific group of individuals, places, times, or processes that are the focus of
the search (Santoso et.al., 2022b)
This research method refers to the method of interviews, surveys, and
direct observations, and then filling out a questionnaire in the form of Innovation
Readiness Level / KATSINOV and Applied Readiness Level (TKT) (Putra &
Santoso, 2020; Ade, Santoso, & Yulio, 2021, Santoso et al., 2021d; Andrean &
Santoso, 2020), Technology Readiness Level is level of maturity condition or
preparedness of particular technological research and development system that
measured with aim of the capability to adopted by users from the government
sector, industry players, private parties and the public.
The interview process is divided into three stages, the first stage is the
preparation of the writer determining the intent and purpose and collecting
information such as questions to the informant. The second stage, the interview
stage, notes and records important points during the interview. And the third
stage is the stage of compiling the results of interviews with CV. X were
summarized and classified according to the criteria on Katsinov.
The furniture industry is one part of the craft sub-sector. The furniture
industry is described in the Indonesian Standard Field Classification (KBLI).
KBLI 31001 contains the wood furniture industry, this group includes the
business of making wooden furniture for households and offices such as tables,
chairs, bed benches, cupboards, shelves, cabinets, room dividers, and the like
(BEKRAF, 2016; OPUS Kemenparekraf, 2019; Rosiadi et al., 2016:112; Riyanto
& Santoso, 2022).
CV. X as an MSME that has been exporting furniture is located in Bantul,
Yogyakarta, and Jepara, Central Java, and has been operating for 17 years,
namely since 2004. CV. X has export coverage to several countries such as
Germany, Italy, France, Belgium, the Netherlands, America, and Japan. CV. X
is also doing creativity by utilizing wood waste to make furniture crafts and wood
materials to make furniture crafts and is expected to increase productivity and
be competitive with the uniqueness of the product that can be easily recognized
by customers. This research also identifies and explores challenges and
business strategies in dealing with technological advances and developments
67
through engineering the company's business processes to increase productivity,

competitiveness, and product uniqueness.
Research data were obtained in three stages, first from interviews with the
company owner’s CV. X. The process of collecting data with structured and
unstructured interviews was conducted several times using online/online
methods. In the first interview, some information was obtained, namely the
background and history of the company, the raw materials used, the prices and
types of products produced, and an overview of the sales and export process.
The second data was obtained from a questionnaire from the Readiness Level
of Innovation/KATSINOV. Ristekdikti (2018), explains that the Katsinov-Meter is
a measuring tool that measures the level of readiness or maturity of innovations
carried out by a company and/or projects/programs/activities. Innovation
Readiness Level or Katsinov consists of 6 levels (Katsinov 1 to 6), each of
which consists of 7 aspects of measurement, namely Technology, Market,
Organization, Partnership, Risk, Manufacturing; and, Investment. The third data
is which is obtained from participatory by making direct observations on the CV.
X.
Figure 3. Research Framework

Source: Author, 2021
Miles & Huberman (1984), activities in data analysis are 1) data reduction
where the data obtained need to be recorded carefully and in detail; 2) data
presentation, done in tabular form; and 3) verification, temporary conclusions
and will change if no strong evidence is found that supports the next data
collection, Sugiyono (2018: 484).
The third data is obtained from participatory by making direct observations
on the CV. X. For secondary data, the researcher uses existing data, namely
the phenomena in the introductory chapter. Miles & Huberman (1984), activities
in data analysis are 1) data reduction where the data obtained need to be
recorded carefully and in detail; 2) data presentation, done in tabular form; and
3) verification, temporary conclusions and will change if no strong evidence is
68
found that supports the next data collection, Sugiyono (2018: 484). For
secondary data, the researcher uses existing data, namely the phenomena in
the introductory chapter. Miles & Huberman (1984), activities in data analysis
are 1) data reduction where the data obtained need to be recorded carefully and
in detail; 2) data presentation, done in tabular form; and 3) verification,
temporary conclusions and will change if no strong evidence is found that
supports the next data collection, Sugiyono (2018: 484). 2) data presentation,
done in tabular form; and 3) verification, temporary conclusions and will change
if no strong evidence is found that supports the next data collection, Sugiyono
(2018: 484). 2) data presentation, done in tabular form; and 3) verification,
temporary conclusions and will change if no strong evidence is found that
supports the next data collection, Sugiyono (2018: 484).

CV. X is one of the exporters of the furniture industry that has been
established since 2004 and has now succeeded in creating various kinds of
simple and elegant furniture products with quality and durable wood raw
materials. CV. X exports products to several large countries (spread across
several continents). CV. X has an Industrial Business License (IUI) issued by
the RI OSS Management and Organizing Agency on January 17, 2019, with
products in the form of wooden furniture with a capacity of 2,700 m3/year.
December 2020 owner of CV. X received the Upakarti award for the IKM (Small
and Medium Industry) category in the Pioneer Service category.
CV. X located in Bantul as many as 120 people and in Jepara as many as
125 people. One of the advantages of a CV. X is to use used wood as the main
raw material and have an official permit and certification issued by the relevant
agency or institution, and it becomes an attraction for foreign consumers. Some
examples of products from CV. X such as tables, chairs, sofas, beds, mirrors,
and so on.
Table 1. Recapitulation of Export Volume CV. X Period Feb 2019 – Jan 2020.
Month Quantity Volume Real Volume Packing PEB Total V-Legal Total
(m3) (m3)
Feb-19 2,556 123,89 631,87 14 14
Mar-19 1,168 65,01 475,77 9 9
Apr-19 1,016 77,92 666,27 11 11
May-19 1,023 36,08 246,11 7 7
Jun-19 995 38,49 228,56 6 6
Jul-19 1,155 44,86 230,52 8 8
Aug-19 1,455 85,76 517,96 16 16
Sep-19 3,505 85,63 541,84 14 14
Oct-19 1,990 69,69 439,88 12 12
Nov-19 3,903 108,68 578,58 11 11
Dec-19 1,840 83,90 616,38 14 14
Jan-20 2,707 138,53 889,50 21 21
Total 23,313 958,43 6.081,25 143 143
Source: Timber Legality Verification Recertification Audit Report Industrial Business License
Holder CV. X
69
The results of interviews and secondary data collection showed that CV. X
has good business development potential in the international market. This is
evident from the recapitulation of the export volume of CV. X is increasing. This
business development also proves that MSMEs are growing from time to time.
This is supported by a statement from a key informant who stated that the
condition of the covid-19 pandemic that had occurred did not hurt the
sustainability of CV. X. During the Covid-19 pandemic had a positive influence,
because of foreign business competitors’ CV. X is unable to export due to the
lockdown implemented by each country. Interviews were conducted by
researchers with key informants, the owner of CV. X, and supporting informants
namely the head of the production, sales marketing, and design development.
Figure 4. Product Example CV.X

Source: Website CV. X, 2022
In furniture production activities can’t be separated from the need for raw
materials/wood materials. Because of CV products. X is export-oriented and
most of the destination countries are Europe, the Middle East, etc. Coverage of
export CV. X includes Germany, Italy, France, Belgium, the Netherlands,
America, and Japan. These countries are very strict about the requirements for
their furniture products, including the wood material used must be certified and
it is clear where it came from so that it is sustainable and does not damage
nature/ecosystems. These things are driven by environmental issues, global
warming, and the balance of the ecosystem. For these raw materials, CV. X
cooperates with partners based on mutual trust. The raw material supplier
partners already know the quality standards of raw materials required by CV. X,
what wood materials can be used for raw materials for furniture needs to be
sent for export purposes. These standards include old wood, demolition of
buildings having a predetermined grade, minimal fillings, as not so to strip, and,
no whiteness. And for new wood, it also has a certain grade, no patches, so as
not to strip, and no whiteness. With wood raw material that has passed these
qualifications, it will be the most important factor in achieving the quality of
furniture products s. demolition of the building has a predetermined grade,
minimal patch es, as not to strip, and no white. And for new wood, it also has a
certain grade, no patches, aso s not to strip, and no whiteness. With wood raw
material that has passed these qualifications, it will be the most important factor
in achieving the quality of furniture products. Demolition of the building has a
predetermined grade, minimal patches, so as not to strip, and no white. And for
new wood, it also has a certain grade, no patches, so as not to strip, and no
70
whiteness. With wood raw material that has passed these qualifications, it will
be the most important factor in achieving the quality of furniture products.
The Timber Verification and Legality System (SVLK) is a tracking system
developed in a multi-stakeholder manner to ensure the legality of timber
sources circulating and traded in Indonesia. The Timber Legality Verification
System (SVLK) was developed to encourage the implementation of applicable
government regulations related to the legal trade and distribution of forest
products in Indonesia. CV X has already pocketed the SVLK. CV X certifications
are FSC -C117252 (Recycled, FSC 100%), RA-COC-006699,
SVLK82430313007 and BSCI: DBID-398607. Timber Legality Verification
Certification audit process at CV. This X refers to the following rules and
regulations:
1. ISO/IEC Guide 17065: 2012 General Requirements for Bodies Operating
Product Certification Systems.
2. ISO/IEC Guide 23: 1982 Methods of Indicating Conformity with Standards
for Third-party Certification Systems.
Figure 5. Business Process Flowchart CV. X

Source: Wood Certification Report, 2021
Based on the results of interviews related to the obstacles faced by CV. In

this X, the key informant explained in general terms related to 1) government
regulations/regulations that change frequently. The change of government
resulted in a change of policy which resulted in the disruption of the export
process. This regulatory problem hinders furniture exports because it is related
to licensing. As a form of law-abiding business, CV. X always strives to comply
with applicable regulations and cooperates with relevant government agencies,
and 2) the need for raw materials used for the demolition of old buildings which
are sometimes difficult to obtain. CV. X cooperates well with suppliers to
overcome this. With superior human resources owned by CV. X. These
obstacles were also overcome by providing additional designs using materials
such as iron, rattan, and natural stone. To support the production process, CV.
X collaborated with the Yogyakarta Provincial Education Office in the form of a
vocational apprenticeship training program for 5 (five) Vocational High Schools.
In addition, the challenge of CV. X is the right schedule so that the product can
reach the customer's hands-on time. CV. X in its export activities uses ships as
71
logistics transportation for every 1 (one) container of either 20 feet or 40 feet,

adjusted to the need for efficiency in shipping costs. X collaborated with the
Yogyakarta Provincial Education Office in the form of a vocational
apprenticeship training program for 5 (five) Vocational High Schools. In addition,
the challenge of CV. X is the right schedule so that the product can reach the
customer's hands-on time. CV. X in its export activities uses ships as logistics
transportation for every 1 (one) container of either 20 feet or 40 feet, adjusted to
the need for efficiency in shipping costs. X collaborated with the Yogyakarta
Provincial Education Office in the form of a vocational apprenticeship training
program for 5 (five) Vocational High Schools. In addition, the challenge of CV. X
is the right schedule so that the product can reach the customer's hands-on
time. CV. X in its export activities uses ships as logistics transportation for every
1 (one) container of either 20 feet or 40 feet, adjusted to the need for efficiency
in shipping costs.
A business or company will have an urgent need to innovate. To
encourage innovation readiness, for commercialization purposes, and reduce
the risk of failure to use innovative products, innovation readiness needs to be
measured and determined in advance. Based on these considerations, it is
necessary to stipulate a Regulation of the Ministry of Research, Technology,
and Higher Education concerning the measurement and determination of
readiness to innovate. The readiness of innovation is the maturity or readiness
of a result of research and technology development that can be measured
systematically so that it can be accepted by users, both government, industry,
and companies. Katsinov's measurement and determination are carried out by
reviewing the conditions of innovation readiness as a prerequisite that must be
met so that an innovative product is ready to enter the market. The results of the
self-assessment measured by Katsinov show that for Katsinov level 3 has been met.
The overall total score is 93, with a percentage of 88.57% which means that it exceeds
the threshold value of 80%.
The results of the self-assessment on Katsinov 4 with a value of 78.18%.
This means that it is not fulfilled because the assessment results are still below
the 80% threshold, so the measurement is stopped at the Katsinov 3 level
achieved. Details of the value of 7 key aspects (1) Technology by 60%; (2)
Market by 90%; (3) Organization by 80%; (4) Partnership by 70%; (5) Risk of
60%; (6) Manufacturing & Logistics by 95%; (7) Investment of 90%. 3 aspects
are below the threshold, namely technology, partnership, and risk. Based on
interviews for filling in the parameters for each aspect of Katsinov above, the
researcher recommends 3 key aspects. The researcher recommends the
following 3 key aspects:
1. The key aspects of technology are expected to require increased
ecosystem support for the adoption of technological products and
innovations for the development of products desired by the market. This
needs to be done so that market penetration becomes stronger through
innovation and technology implementation,
2. On the key aspects of the partnership, the recommendation is to improve
the management of cooperation, including existing cooperation,
3. In the key aspects of risk, recommendations are given in the form of
improving the application of risk management, starting from risk
72
identification to market risk mitigation. This needs to be a concern for

companies to be able to identify risks, starting from planning, and identifying
risk categories so that they can manage risk including mitigation.
Table 2. Results of Self-Assessment Measurements Katsinov 3 on the CV. X

(0 = not met; 1=20%; 2=40%; 3=60%; 4=80%;
No Aspect 0 1 2 3 4 5
5=100% or fulfilled)
The actual system technology has been
1 T X
demonstrated in an actual environment.
External testing of the developed technology has
2 T X been carried out in full, to meet technical
requirements and regulatory compliance.
3 T X Have documented the technology developed.
4 T X Innovation Results have been introduced.
Has acquired intellectual property (eg patents,
5 T X
industrial designs, copyrights, trademarks, etc.).
6 M X The specific needs and requirements of the
customer have been identified.
7 M X Segment, size, and market share are predictable.
8 M X The product has been introduced, and the price

has been set.
9 O X Establishment of the organization (business
structure with staff and collaborators).
10 O X Identify any additional staff needed.
11 O X Has detailed the division of responsibilities and
workload.
The system design is mostly stable and proven in
12 Mf X
test and evaluation.
Proven manufacturing processes and procedures
13 Mf X
on a pilot scale.
14 Mf X Production at a low rate has been implemented.
Has defined the final condition of the technology
15 I X product by considering the target person, vertical
market, and geography.
16 I X Validation of the business carried out has been
applied.
Identification and validation of key performance
17 I X
indicators that indicate business success.
18 P X A formal partnership has been established.
Have prepared and implemented a cooperation
19 P X
plan.
Technological risk studies are the basis for
20 R X making technical decisions in the engineering &
operation stage.
At the technology application stage, a technology
21 R X
risk control plan is prepared.
0 0 0 0 12 9
Σ 93
73
Σ 88,57% FULFILLED
Source: Self-Assessment by the researcher on Katsinov Meter, 2021
Table 3. Results of Self-Assessment Measurements Katsinov 4 on the CV. X

(0 = not met; 1=20%; 2=40%; 3=60%; 4=80%;
No Aspect 0 1 2 3 4 5
5=100% or fulfilled)
Skills related to the operation and maintenance of
1 T
X technology products have been formed.
Common uses of technology products by a wide
2 T
X range of markets have been identified.
Technological advantages through test results
3 T
X have been identified.
There is support for the adoption of technology
4 T
X products by the market.
Has built the image of technology products in the
5 T
X market.
6 M X Business model set.
7 M X Competitors are well identified.
Marketing emphasizes the introduction of specific
8 M
X technology products to its customers.
9 O X Has established the form of organization.
Has developed partnerships with independent
10 O
X organizations.
Identify opportunities to introduce products to new
11 O
X partners and markets.
12 Mf X It has been shown that production is profitable.
Start implementing GMP (Good Manufacturing
13 Mf
X Practice) or Lean Manufacturing.
Began to implement quality assurance according to
14 Mf
X standards (SNI).
There are public demands on the quality, safety,
15 I
X and security of the products used.
16 I X Market potential identified.
Market acceptance of the product has been
17 I
X identified.
18 P X Collaborating in dynamic business networks.
19 P X Continue to manage existing collaborations.
Preparation of non-technological (organizational
20 R and social) risk control plans at the stage of
X product introduction to the market.
An organizational risk assessment (especially
21 R financial indicators) is carried out at the stage of
X introducing the product to the market.
Social impact risk assessment at the stage of
22 R
X product introduction to the market.
0 0 0 9 6 7
Σ 86
Σ 78,18% FULFILLED
Source: Self-Assessment by the researcher on Katsinov Meter, 2021.
Determining the technology used in the business process will need to be

considered in detail and precisely regarding the degree of the mechanism and
74
the expected benefits (Susilo, Wijayanti, & Santoso, 2021); (Santoso et.al,
2021). If viewed from the TKT, Katsinov 3 consists of TKT 7, 8, and 9. Based on
the results of discussions and surveys, an assessment with an instrument (TKT)
results in level 9 (Arwanto & Prayitno, 2013).
Conclusion
Based on the results of the identification and analysis and discussion of
the company CV. X, as a furniture craft MSME tcane to penetrate the export
market, found the following:
1. CV. X has a unique product including processing used wood that is still
possible to be processed into innovative products with economic value.
Creativity by utilizing waste wood materials to make furniture crafts and add
value. This is supported by business processes and technology
development as well as the acquisition of related standards that support
business processes up to export.
2. The results of the analysis of the Innovation Readiness Level (Katsinov)
and the Technological Readiness Level (TKT) were carried out through a
self-assessment conducted by researchers with the company as follows:
a. The results of the self-assessment for Katsinov level 3 have been met
and actually Katsinov level 4 will also be fulfilled if 3 key aspects,
namely technology, partnerships, and risk are improved, for example
increasing ecosystem support for technology product adoption and
innovation for product development desired by the market, improved
management of cooperation including the ongoing collaboration and
increased risk management implementation, from risk identification to
market risk mitigation
b. The results of the self-assessment for TKT level 9 are met.
From the results of identification and analysis of Katsinov and TKT and
their recommendations, it is expected that CV. X can increase productivity, and
competitiveness and expand exports and/or the marketplace. Creative economy
business actors in the craft sub-sector, especially furniture, are expected to
collaborate with joint programs that have been carried out by various
stakeholders in the creative economy/SME development ecosystem including
the role of the government (Kemenparekraf/ Baparekraf, Ministry of Industry,
Ministry of Trade, Ministry of Cooperatives and SMEs), Academics,
Associations (Kadin) and others in brought Indonesia's name to international
trade. In this study, CV. X has shown a good stage. The role of the National
Research and Innovation Agency and the Ministry of Education and Culture in
developing value-added innovations, including in the implementation of the
measurement and recommendation of the Innovation Readiness Level is also
very necessary so that the outcomes and added value of both business actors
(micro), industry and in the aggregate in the macro economy may increase.
This study has limitations on the craft sub-sector which has not been
widely studied. In particular, research on the export craft subsector using the
Katsinov measuring instrument. Another limitation is the direct survey in the
field offline, except for one of the authors who know the owner of the CV. X.
Future researchers are expected to be able to further examine the craft sub-
75
sector with questions that can describe in more detail so that if using the
Katsinov measuring instrument it can increase to the next level.
Acknowledgments
The researcher would like to thank the lecturers and colleagues of the
Faculty of Economics and Business of the UMB Master Program who have
provided suggestions for the results of this research and the owner of the CV. X
allowed the researcher to discuss and allowed making it a CV. X as a case
study. And to all parties that we cannot mention one by one.
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78
Method
Type of
Industry
Appendix
Keyword
State of the Art
Craft
Tourism
Culinary
MSME's
Qualitative
Investment
Oil and Gas
Quantitative
Study of Literature
Trade, Service, and
Food and Beverage
˅
˅
Santoso, S., Hapsari, P. A., Difoasih, G., & Prianto, S. E. (2021).
Santoso, S., Natanael, A., Fatmawati, A. A., Griselda, A., Khoirunnisa, J.,
˅
˅
Simanjuntak, M., & Bagus, A. R. (2021)
Santoso, S., Natanael, A., Griselda, A., Khoirunnisa, J., Simanjuntak, M., Bagus, A.
˅
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R., & Merry, L. Z. (2021)
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Susilo, Y.; Wijayanti, E.; Santoso, S (2021)
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Adhi, S., Sugeng, S. (2021).
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Andrean, D.; Santoso, S. (2020)
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Suriani, N., Aan Oka Suryadinatha, Ida IDM Rai Mahaputra. (2017).
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Suci, Y. R. (2014)
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Ni Luh Wisayani,Kertahadi. (2014)
79
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Yunida Sofiana. (2011)
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Donna, L., Santoso, S., Kayani, I., Cahyanugraha, I., Arfiandi, D., & Aryati, D.
(2021)
Jurnal Manajemen & Bisnis, Volume 22, No 1 (March 2023)
Analysis of influence factor of service quality and taxpayer

satisfaction in reporting e-SPT
Nobertus Purnomo Lastu
Taxation Departement, Polytechnic Ubaya, Surabaya, Indonesia
Corresponding author: Nobertus Purnomo Lastu, purnomolastu@staff.ubaya.ac.id
Received: October 27th 2020; Accepted: April 23rd 2021; Published: March 21st
2023
Abstract
Tax Volunteers are college students assigned by the Directorate General of

Taxes to assist in reporting Tax Returns (SPT) using the electronic Tax Return
(e-SPT). Regarding to the services provided by tax volunteers, it is necessary
to evaluate their performance. This study aims to analyze the factors that
influence the service quality performed by the Tax Volunteers whether they
have met the service quality and taxpayer satisfaction. The data obtained was
processed using Importance Performance Analysis (IPA) with the help of
Cartesian diagrams for service quality and to determine the level of taxpayer
satisfaction using a Tao diagram on Customer Satisfaction Index analysis.
Based on the findings, the service quality provided by Tax Volunteers in
Surabaya is influenced by factors consisting of courtesy and reliabilities factors,
while tangibles and serviceability still need to be improved. Meanwhile, the
factors of reliability, competence, courtesy, security, accessibility,
communication, and customer understanding are considered as good service
quality, while the tangible and serviceability factors don’t affect service quality.
The following analysis relates to taxpayer satisfaction, it was found that in
general taxpayer satisfaction has been fulfilled because the interests or
expectations of taxpayers are lower than the perception of performance
obtained.
Keywords: taxpayer, tax volunteer, service quality, satisfaction level
Introduction
According to the General Tax Provisions Law article 3 section 1
(Indonesia, 2007), stated that every taxpayer must fill out a tax return (SPT)
correctly, completely and clearly, in Indonesian language using Latin letters,
Arabic numerals, rupiah currency units, sign and submit it to the tax service
office where the Taxpayer is registered, or another office determined by the
Director General of Taxes (DJP). Taxpayers are required to submit an Annual
SPT report once a year, in particular, in this study the submission of the annual
SPT of individual taxpayers will be examined.
To facilitate the submission of SPT, the Directorate General of Taxes has
issued a regulation that reporting SPT is no longer done manually but is done
electronically with e-spt. The problem is that not every taxpayer is used to using
To cite this article: Lastu, N.P. (2023): Analysis of influence factor of service quality and 80
taxpayer satisfaction in reporting e-SPT, Manajemen dan Bisnis, 22(1), 80-91. DOI:
10.24123/jmb.v21i2.510
e-spt. It happened because the implementation of reporting is done once a

year, especially for individual taxpayers who report their SPT using the e-spt.
Even if taxpayers have done, they generally forget how to use e-SPT report.
Thus, assistance is needed in reporting.
This assistance needs to be done apart from not being used to using
electronic SPT report is because the taxpayers reported their SPT when the
reporting deadline is approaching, which is at end of March. As a result, due to
the large number of taxpayers reporting their SPT, the Tax Service Office (KPP)
is full of queues of taxpayers. Therefore, the Directorate General of Taxes,
which has collaborated with universities in Surabaya, invites students to
participate in the implementation of SPT reporting activities, especially for the
annual SPT of individual taxpayers. According to the DJP, students who are
members of their official memorandum (Ministry of Finance, 2019) are called
Tax Volunteers. Specifically, for the DJP East Java 1 area, it includes 16
universities in Surabaya that are members of the Surabaya Tax Center Forum.
Before doing services, students are given training both covering material for
sending e-SPT and how to provide services to taxpayers. At the end of the
training, DJP inaugurated students as assistants of e-SPT submission with the
title of Tax Volunteer.
Table 1. The influence of Service Quality and Taxpay Satisfaction

Title Research Method Finding
Measuring Customer Satisfaction Customer If the expectation is
with Service Quality Using satisfaction model higher than the
American Customer Satisfaction perceptions of
Model (Angelova, 2011) performance, customer
will feel dissatisfied with
the services provided.
Analysis of Service Quality on Importance The service quality
Taxpayer Satisfaction Performance provided by the Pratama
At the Kedaton Primary Tax Analysis. (IPA) and Kedaton Tax Service
Service Office in Bandar Lampung Cartesian Diagram Office has not been fully
(Wulan, 2012) analysis provided.
satisfaction for the
taxpayer
Analysis of Taxpayer Satisfaction Examine the Reliability dimension is
with Primary Tax Service Offices differences between the dimension that has
in the Regional Offices of the expectations and the most significant
Directorate General of Taxes, perceptions of influence on taxpayer
East Java I. (Adisasmito Stefan service quality satisfaction.
Purnomo & Sadjiarto Arja ,2013) dimentions
This research was conducted to determine the service quality performed

by tax volunteers in supporting the successful implementation of SPT reporting
using e-spt. If the service quality performed by tax volunteers increases, it will
affect taxpayer satisfaction which will increase taxpayer compliance (Putri,
2020). From the explanation above and because it is the first time for the tax
volunteers are being assigned to help taxpayers, it is necessary to do an
evaluation in order to improve their services. Therefore, the problems in this
study can be formulated as follows: Factors that influence service quality and
81
satisfaction of taxpayers who make tax report using e-SPT by tax volunteers.
The purpose of this study was to determine the factors that influence service
quality and taxpayer satisfaction. At the end of this study, it is expected that the
results will be used to improve the service quality and taxpayer satisfaction
conducted by Tax Volunteers, so it will increase taxpayer compliance in
reporting taxes.
According to the previous studies above, it shows that the service quality
in a tax service office is conducted using the IPA method with the result that
service quality has not fully provided satisfaction to taxpayers (Wulan, 2012).
Other research on assessing the level of customer satisfaction (Angelova,
2011) using the Customer Satisfaction Model shows that if expectations are
higher than perceptions of performance, the recipient of the service by the
customer will feel dissatisfied.
Service quality is defined as a comparison between expectations/
interests and perceptions obtained from a performance (Cauana, 2000). In A
Multiple-Item Scale for measuring consumer perceptions of service quality
(Parasuraman, 1988), stated there are five dimensions that can be used to
measure service quality consisting of Tangible which is a real physical
appearance that can be seen and held by service providers such as facilities
physical warehouse or room, equipment, and appearance of service providers.
Reliability is the ability to work accurately, reliably, and according to what has
been promised. Responsiveness is the ability to help quickly. Assurance is the
ability to guarantee a sense of security and decency which can generate a
sense of trust from service users, and Empathy which is care and concern for
customers such as the ease of being able to communicate. These five
dimensions are broken down into nine dimensions based on the five dimensions
of service quality, namely reliability, security, competence, courtship, tangibles,
accessibility, customer understanding, and serviceability. The nine dimensions
are actualized into 18 question attributes. In order to find out to what extent the
five dimensions are actualized in the 18 question attributes, a priority scale is
conducted on which attributes need to be increased, maintained or excessive
by making an analysis called the importance and performance level analysis of
Abalo (2007) in Importance Values for Importance Performance Analysis (IPA).
Importance Performance Analysis is a simple and useful technique for
identifying those attributes of a product or service that need an improvement or
alternatives for possible cost savings without significantly compromising overall
quality. IPA is actually a graphical method of showing in a two-dimensional
coordinate system, which is calculated in relation to each other i.e., the average
value of importance and performance of different service/product elements,
represents the user's perception of the service quality provided by the
organization, whereas importance refers to the user's assessment of the
importance of the service. (Martilla & James in Ormanovic 2017). The result is
shown in a diagram Figure 1.
Quadrant A, if importance is high and performance is low, it becomes the
main concern to be improved.
Quadrant B, if the importance and performance are high, it should be
maintained.
Quadrant C, if the importance and performance are low, it is not a priority
82
to be improved. It usually called a low priority.

Quadrant D, if the importance is low and performance is high, it became
something excessive.
Quadrant A Quadrant B
Quadrant C Quadrant D
Figure 1. Importance Performance Analysis (IPA)

Source: Ormanovic, 2017
Satisfaction can be defined as an evaluation of the difference between

what is expected and what is received from a product produced (David &
Wilton, 1988), while satisfaction is also interpreted as a customer's feeling that a
product has been exceeded their expectations (Chiguvi, 2017).
The association between service quality and satisfaction level is the result
of an individual service implementation and entire service encounter (Bitner &
Hubbert, 1994 in Mensah, 2018). Tao, in Customer Relationship Management
based on Increasing Customer Satisfaction (2014) stated that the level
Customer satisfaction can be seen by comparing customer expectations with
customer experience in receiving services. It is shown in Figure 2 below, where
customer satisfaction and customer expectations are the opposite. Customer
satisfaction is obtained from customer experiences about company
performance compared to customer expectations. The higher the customer
experience, the higher the customer satisfaction. On the other hand, the higher
of the customer expectations will bring lower customer satisfaction. In Figure 2
the level of satisfaction is divided into five intervals, namely very satisfaction,
relative satisfaction, general satisfaction, relative dissatisfaction and very
dissatisfaction. Mellroy and Barnett, 2000 in Chiguvi & Guruwo (2017) stated,
loyalty is a customer's commitment to do business with a given organization, in
a way to buy its goods or services repeatedly and to recommend them to
colleagues. Therefore, if the taxpayer is satisfied, they will become loyal and will
give benefit to the DJP because this loyalty will be reflected in the willingness to
be served again or to get more service from tax volunteers because the quality
of the service that provided makes the taxpayer satisfied.
There is an association between service quality and satisfaction level as
83
stated in Gong's research (2018) conducted in 5 Asian countries that good

service quality affects satisfaction levels and will ultimately affect customer
loyalty levels. Hadiyati (2014) also found that in a study of services in the public
sector, she found that service quality greatly influences the level of satisfaction.
The factor that has the greatest influence is the responsiveness of the service
provider to the community. Whereas Sharma (2017) in her findings said that
electronic service quality, customer service, and trust have a strong direct effect
on satisfaction and an indirect effect on loyalty, so the level of actual satisfaction
is also a mediation between service quality and customer loyalty. Loyal
customers have characteristics such as making repeat purchases,
recommended to colleagues. Therefore, if the taxpayer is satisfied with the
service quality provided by the tax volunteers, they will be to return to use the
service conducted by tax volunteers.
Figure 2. Customer Satisfaction Index (CSI)

Source: Tao (2014)
Based on several theories about service quality and customer satisfaction

levels, especially Gong's research (2018), this study created a research model
which can be described as follows:
Performance
Service Customer
Quality Satisfaction
Expectation
Figure 3. Research Method
In this study the method that used to assess service quality is to compare
expectations and performance of taxpayers in order to assess the level of
service quality with the help of IPA (Importance Performance Analysis). While to
84
assess the level of satisfaction of taxpayer, the Customer Satisfaction Index by

Abalo in 2007 is being used and results are illustrated through a diagram (Tao,
2014).
The data that being used in this study was from a list of individual income
taxpayers who report SPT data using e-spt. Taxpayers who requested as
resource persons were taxpayers who ask for assistance in filling out e-SPT at
the Tax Service Office in the DJP East Java 1 Surabaya area. The method used
in data collection w using a list of questions that are sent to taxpayers who have
reported their SPT via e-spt. Taxpayers who have received assistance from Tax
Volunteers are asked to fill in their identity according to the standard operating
procedure at the Tax service office. Through the identity data that has been
obtained, the taxpayer is given a list of questions through the Google form. The
data that has been received from the taxpayer is being processed using the
Importance Performance Analysis (IPA) in order to find out the difference
between expectations and performance.
Finding and analysis

The results of the Importance Performance Analysis (IPA) analysis found
that the quality level of service provided by Tax Volunteers who are members of
the Surabaya Tax Center Forum under the authority of the East Java
Directorate General of Taxes 1 to taxpayers is illustrated in table 2.
From the results of data processing, data analysis can be concluded as
follows:
First, it is known that the taxpayer’s expectation for the services provided
by Tax Volunteers who are members of the Surabaya Tax Center Forum under
the auspices of the East Java Directorate General of Taxes 1 are very high. It is
proved by respondent's answers for the element of interest in tax services with
the average 4,56, while the perception of the performance conducted by the
Tax Volunteers also gets a high score with average 4,65. In more detail on the
reality data, there are several things that are stated by high taxpayers as more
than expectations, such as reliability, competence, courtesy, security,
accessibility, communication, and customer understanding. On the other hand,
for the tangible and serviceability dimensions, the expectations exceed the
reality, therefore for the 2 tangible and serviceability dimensions, Tax
Volunteers must pay attention and improve the quality of their services. Through
the Cartesian diagram, it can be shown the position for the quality element of
the level of expectation of the taxpayer with the performance of the taxpayer. By
using the overall average reference of the expectations of the taxpayer from the
service quality variable (4,56) and the overall average performance of the
taxpayer from the service quality variable (4,65) the results are shown in Figure
4, The explanation of the figure is as follows.
Attributes located in quadrant B stated that it has a higher level of
expectation than the average level of importance, which is 4,56 and the attribute
level of performance is lower than the average performance level, which is 4,65
in overall. Attributes that are in quadrant I:
a. A comfortable place during the e-SPT service process
b. The existence of modern equipment in the e-SPT service process
c. The level of speed in providing e-SPT services
85
Ease of reporting or complaining problems
Table 2. Importance Performance Analysis Tax Volunteers

No. Average
Question
Importance Performance
Tangibles
1 A comfortable place during the e-SPT service
4,63 4,47
process
2 The existence of a modern equipment in the e-SPT
4,73 4,60
service process
Reliability
3 The e-SPT service process is conducted on time 4,57 4,67
4 The e-SPT service process is conducted as
4,57 4,73
promised
Serviceability
5 The level of speed in providing e-SPT services 4,67 4,47
6 Ease in reporting or complaining problem 4,77 4,60
Competence
7 The skills of Tax Volunteer in filling the data 4,43 4,70
8 The skills of Tax Volunteer in operating computer
4,50 4,60
system
Courtesy
9 Greetings in the e-SPT service process 4,57 4,80
10 Polite, friendly and respectful behavior in the e-SPT
4,53 4,70
service process
Security
11 Maintain the secrecy of taxpayer data 4,70 4,70
12 Trust in the Tax Volunteer 4,40 4,57
Accessibility
13 The location for e-SPT services is easy to reach 4,50 4,67
14 14, The location for e-SPT services is easy to find 4,37 4,63
Communication
15 The language of the Tax Volunteer is easy to
4,63 4,70
understand
16 The politeness of the Tax Volunteer in
4,43 4,67
communicating
Understanding Customer
17 The understanding of Tax Volunteer on taxpayer
4,50 4,77
problems
18 The readiness of Tax Volunteer in serving 4,67 4,73
Average 4,56 4,65
Source: Processed data
86
Figure 4. Cartesian diagram between expectations and performance

For the Directorate General of Taxes who are represented by tax

volunteers should pay attention to the four attributes above which are the top
priority that must be considered. The tangible elements which include a
comfortable place during the e-SPT service process and the existence of
modern equipment in the e-SPT service process must be able to meet the
expectations of taxpayers on these attributes. If the Directorate General of
Taxes does not fulfil the taxpayer’s expectation, they will certainly delay or even
not report the SPT.
Attributes located in quadrant B stated that these attributes have a higher
performance level than the average performance, which is 4,65 and the
attribute level of expectation is higher than the average level of expectation,
which is 4,56. Attributes that are in quadrant II:
a. The e-SPT service process is conducted on time.
b. The e-SPT service process is conducted as promised.
c. Greetings in the e-SPT service process
d. Maintain the secrecy of taxpayer data.
e. The language of the Tax Volunteer is easy to understand.
f. Readiness of the Tax Volunteer in serving
Even though the performance is already higher than the average of the
entire performance of the variable and the level of expectation is above the
entire average level of expectation, the attributes that are in quadrant II cannot
be ignored by the Directorate General of Taxes. In fact, the Directorate General
of Taxes must maintain its performance so that taxpayers will continue to
experience good service quality.
Attributes located in quadrant C stated that these attributes have a level of
expectations below the average, which is 4,56 and performance level attributes
below the average performance, which is 4,65.
Attributes that are in quadrant IV:
a. The skills of the Tax Volunteer in filling the data
b. Polite, friendly and respectful behavior in the e-SPT service process
87
c. e-SPT service locations are easy to reach.

d. The politeness of the Tax Volunteer in communicating
e. The understanding of the Tax Volunteer on taxpayer problems
In this quadrant, even though the level of expectation of the taxpayer is
below the average level of the expectation, while the performance level of the
tax volunteer is above the average performance, it can be said that the
performance of the tax volunteer is a bit excessive. DJP is better to give
attention to quadrant B, where the level of expectation and level of performance
are above the entire average.
Attributes located in quadrant D stated that these attributes have a level of
expectation below the average level of expectation, which is 4,56. Meanwhile,
the level of performance is below the average level of performance, which is
4,65. In this quadrant, even though the level of importance is below the average
level of importance and the performance of Tax Volunteers is also below the
average, it is not a major factor that should be given more attention to be
improved. Attributes that are in quadrant III:
a. The skills of the Tax Volunteer in operating computer systems
b. Trust in the Tax Volunteer
c. Places for e-SPT services are easy to find.
Secondly, the next analysis is to find out the level of taxpayer satisfaction
based on the level of expectations and the performance of the tax volunteers as
shown in Figure 4, The higher expectation of the tax volunteers’ performance on
the expectation of the taxpayer, the more satisfied they will be and vice versa.
The highest difference score between the performance of tax volunteers on the
expectations of the taxpayer is 0,27 and the lowest score between the
expectations of the taxpayer on the performance of the tax volunteer is 0,17.
The attributes of taxpayers with a high level of satisfaction one is shown through
attributes 7,9,14,16 and 17, consisting of:
a. The skills of the Tax Volunteer in filling the data
b. Greetings in the e-SPT service process
c. Places for e-SPT services are easy to find.
d. The politeness of e-SPT service officers in communicating
e. The understanding of e-SPT service officers on taxpayer problems
Next, taxpayers whose level of satisfaction is below the category 1 or
category 2 shown through attributes 4,10,12 and 13 which consist of:
a. The e-SPT service process is conducted as promised.
b. Polite, friendly, and respectful behavior in the e-SPT service process
c. Trust in the Tax Volunteer
d. e-SPT service locations are easy to reach.
Furthermore, taxpayers whose level of satisfaction can be classified into
category 3, are shown attributes 3, 8, 11, 15 and 18, consists of:
a. The e-SPT service process is conducted on time.
b. The skills of the Tax Volunteer in operating computer systems.
c. Maintain the secrecy of taxpayer data.
d. The language of the Tax Volunteer is easy to understand.
e. Readiness of the Tax Volunteer in serving.
f. Lastly, taxpayers whose level of satisfaction is categorized 4 are shown
attributes 1, 2 and 6 which consist of:
88
g. A comfortable place during the e-SPT service process

h. The existence of modern equipment in the e-SPT service process
i. Ease of reporting or complaining problems
j. In the end, taxpayers whose level of satisfaction is low are shown attribute
5, which contains the level of speed in providing e-SPT services.
From the results of Figure 5, taxpayers get satisfaction in several
dimensions such as accessibility, reliability, courtesy, competence,
communication, and customer understanding, while the tangible and
serviceability dimensions show that they are not satisfied.
Satisfaction
Performance
(0,27)
7 17
14
, ,16
12
13
2
4 3
3
15 3 8
18
Expectation
11
1 2 6
5
Dissatisfaction -0,17
Figure 5. Position of Taxpayer Satisfaction Level Based on

Expectations and Performance
Conclusion
From the results of data processing, it was found that the main factors
influencing service quality were courtesy and reliability factors, while the
tangibles and serviceability factors still did not meet service quality, so it needed
to be improved. In more detail, the tangibles factor consists of a comfortable
place and modern equipment, while serviceability consists of speed in providing
services and ease of reporting taxpayer problems. For factors that are
considered good service quality are factors of reliability, competence, courtesy,
security, accessibility, communication, and customer understanding. Compared
with previous studies, it shows that there are similarities in the factors that affect
89
the service quality, namely reliability, but the reliability factor is not the dominant
factor yet the second factor.
For the satisfaction factor, because the perception of the performance
provided by the taxpayer has exceeded the expectations of the taxpayer, the
taxpayer is satisfied with what has been done by the Tax Volunteers. The
factors that most satisfy taxpayers are competence and customer
understanding, which includes the skills of tax volunteers and the understanding
of tax volunteers on taxpayer problems.
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91
Year
Rural entrepreneurship strategic planning a cognition

perspective
Ferrynela Purbo Laksono, Diah Utari Berta Rivieda, Lucia Kurniawati
Faculty of Economy, Sanata Dharma University, Yogyakarta
Corresponding author: Ferrynela Purbo Laksono, Ferrynela@usd.ac.id
Received: November 19th, 2021; Accepted: August 8th, 2022; Published: March
21st 2023
Abstract
The purpose of this paper is to explore the cognition aspects of strategic

planning in rural entrepreneurship. The research is a case study in Patuk sub-
district, Gunung Kidul district, Yogyakarta. The phenomenon that underlies this
research is that rural entrepreneurs have limited knowledge and skills to
develop business. Patuk Sub-district has great potential. Cognition aspects are
determinants for rural entrepreneurs to develop village potential. This research
is qualitative research using a case study. The method in this research uses in-
depth interviews and FDG. This study develops a model for the cognition aspect
of rural entrepreneurs in developing strategies. The result of the research is that
the cognition aspect is one of the determinants of success in determining the
strategic planning. With sufficient knowledge, rural entrepreneurs can develop
the right strategic planning, so they can compete and survive. Rural
entrepreneurs get cognition from two dimensions. (1) The rural internal
environment itself consists of rural communities where entrepreneurs are
located. (2) The external environment is a support system from outside the
community. The rural entrepreneurs need a support system. Rural
entrepreneurs can build an ecosystem consisting of the internal environment as
well as the external environment.
Keywords: rural entrepreneurship, cognition, strategy.
Introduction
Entrepreneurship is a concept that continues to develop especially in the
study of economic development (Hisrich & Drnovsek, 2002). Entrepreneurship
is one of the concepts that can drive the economy including the economy for
rural communities (Thurik & Wennekers, 2004). One of the important keys of
rural entrepreneurship is to develop the potential (Zampetakis & Kanelakis,
2010). Innovation is an important aspect to consider in order to survive
(Rădulescu et all., 2014). Not only related to the network, but also rural
entrepreneur research is also related to the abilities possessed by
entrepreneurs (Matthews, et al., 2018). Knowledge about taking advantage of
opportunities can influence business development in rural entrepreneurship
(Zampetakis & Kanelakis, 2010)
To cite this article: Laksono, F.P., Rivieda, D.U.B., Kurniawati, L. (2023): Rural
entrepreneurship strategic planning a cognition perspective. Manajemen dan Bisnis, 22(1), 91- 91
104. DOI: 10.24123/jmb.v22i1.581
Year
Rural entrepreneurship is starting to be an interesting study and is a

study that continues to grow. Several rural entrepreneurship studies have been
carried out related to building community in business that can encourage the
success of rural entrepreneurship (Combe & Greenley, 2004; Rădulescu, et all
2014; Sophia, Demetrios, & Dimitris, 2004; Williams, 2011; Zampetakis &
Kanelakis, 2010). The rural community can optimize the existing potential to
gain economic benefits (Fuller-Love et al., 2006). The rural area has broad and
diverse potential, starting from natural resources, agricultural resources, culture,
and values. Rural people need to develop their skills and knowledge to achieve
prosperity for themselves and their community. They are required to be creative
in utilizing their potential to take the opportunities from the rural and changes
that occur due to the external environment. The gap of the ability and the
knowledge must be overcome so that the rural economy will not be left behind
by the urban economy.
Most of the issues of interest in rural entrepreneurship are associated
with small and medium enterprise business development. The limited available
resources need to be cultivated properly to get both financial and non-financial
profits and incomes (Korsgaard et al., 2016). Therefore, the entrepreneurs need
to be creative and innovative in maximizing all of the potentials as an
investment in the future (Galindo-Martín et al., 2019; Hisrich & Drnovsek, 2002;
Thurik & Wennekers, 2004). Entrepreneurship is not only about using and
managing resources but also an attempt to increase competitive advantage
(Muthusamy, 2008; Tang & Hull, 2012; Weerawardena & Coote, 2001). Ability
entrepreneur is important to entrepreneur growth (Deakins & Freel, 1998).
Various dynamics of entrepreneurship in general and rural entrepreneurship, in
particular, can be a deeper study to see cognitive aspects. Cognitive aspects in
rural entrepreneurs can answer the problem of increasing the ability of
entrepreneurs (Combe & Greenley, 2004; Muthusamy, 2008). Knowledge as
the cognitive process is the key to successful rural entrepreneurship (Lattacher
& Wdowiak, 2020).
Unfortunately, Rural entrepreneurs do not have sufficient knowledge to
develop their business. Based on the initial interview conducted by the
researcher with Haryo Ambar Suwardi, the sub-district head of Patuk, it was
revealed that entrepreneurs find it difficult to develop their business because of
their lack of knowledge. For this reason, it is necessary to determine that
researchers need further aspects of the cognition of rural entrepreneurs.
Cognition can see more deeply related to the ability and knowledge that is
owned in determining the planned strategy (Wrona & Ladwig, 2015). Strategic
cognition is needed to find information in determining the appropriate formula.
This is related to the knowledge, values, and culture adopted by the community.
Moreover, the rural community still maintains its culture and values (Williams,
2011). This study analyses the cognitive aspects of developing strategies in
rural entrepreneurship.
The cognition process is an important key to formulating strategies
(Muthusamy, 2008). Entrepreneurs need to improve aspects of cognition so that
they can continue to grow (Lattacher & Wdowiak, 2020). Cognitive strategies
build flexibility in business (Combe & Greenley, 2004). Entrepreneur cognition
to develop strategies to be more innovative (Sassetti, Marzi, Cavaliere, &
92
Year
Ciappei, 2018). Rural entrepreneurship requires different strategies to survive

and compete (Tang & Hull, 2012). Cognition can be obtained from various
sources. Not only learn from theirs own experience but also can learn from
others (De Jaegher, Di Paolo, and Gallagher, 2010).
Social Cognition provides knowledge and understanding of the results of
social interactions (Albert, Dean, & Baron, 2016). Individuals absorb
information, process, and produce knowledge on the results of interactions with
the community. Both formal and informal community have an impact on rural
entrepreneurs (Escandón-Barbosa et al., 2019). Formal communities are those
that are formed by society and interconnection with the government (Thurik &
Wennekers, 2004). The informal community also needs to participate in building
rural entrepreneurs (Williams, 2011). Besides that, it is important to see
entrepreneurs building networks with schools that study entrepreneurship (Eyal,
2008).
The entrepreneurs need to remember that they cannot thrive on their
own. in other words, entrepreneurs need external encouragement to be able to
develop their business and knowledge. Support could come from the formal and
informal institutions (Escandón-Barbosa, Urbano, Hurtado-Ayala, Salas
paramo, and Dominguez, 2019). they need a network to grow a business.
network with business schools to develop knowledge (Eyal, 2008). When the
owner has the attention to develop his skills, knowledge, and information related
to his business, it will increase his business (Ayinla Alarape, 2007). various
supports can come from the government to support social entrepreneurship
(Thurik & Wennekers, 2004; Zampetakis & Kanelakis, 2010). Government and
business schools can support to environment to be able to build an
entrepreneurship ecosystem. that supports such as the promotion of
entrepreneurship. various supports to provide this knowledge. For this reason,
the aim of this research is to analyse the cognitive aspect in developing rural
entrepreneurship. This research answers the questions 1) how does rural
entrepreneurship perceives potential? 2) how does rural entrepreneurship view
the business environment in building strategy? 3) how cognitive do
entrepreneurs have in developing strategies?
Research Methods
This research uses the qualitative method. Qualitative research has the
characteristics of not having a lot of data in order to obtain more information
(Creswell, 2008). Qualitative research method can digging up deeper
information ( Laferriere, 1986). research to obtain more unique data with various
approaches. Qualitative research can combine various forms of datas (Neale,
2016). This research is a case study in the Patuk subdistrict, Gunungkidul,
Yogyakarta, Indonesia. This study tested the validity by using triangulation.
Qualitative research allows using triangulation to ensure the validity of research
to provide a comprehensive understanding of a phenomenon (Carter, Bryant-
Lukosius, Dicenso, Blythe, and Neville, 2014). This research uses method
triangulation and data triangulation. This research uses grounded theory.
Grounded theory arranges systematic steps to be able to obtain more complete
qualitative data to meet scientific principles (Charmaz, 1996). The grounded
theory emphasizes interaction making it appropriate for behavioural research
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(Creswell, 2008).This research explores related information Information seeking

was carried out by in-depth interviews with stakeholders, Focus Group
Discussion. The discussion is easier to provide coding for each data obtained
Interviews were conducted with 37 Informan. Interviews were conducted
with rural entrepreneurs and government officials The government, in this case,
were the village government and the sub-district government. The sub-district
head is a representative of the sub-district government, who is the key
informant. Village officials from Bunder village, Patuk village, Beji village
represent the village government. The researcher chose these three village
officials because there were many entrepreneurs in their area. This study also
conducted interviews with 33 entrepreneurs. This is to get balanced data. The
data obtained with patterns of information related to the ability of entrepreneurs
in implementing development strategies and also entrepreneurial cognition. The
research team conducted three stages of interviews. First, the initial interview
with the head of the Patuk sub-district. The information obtained is in the form of
initial information related to the development of entrepreneurship and cognition
of entrepreneurs in Patuk sub-district. Informants provide information related to
the cognition of rural entrepreneurs. Not only that, but they also provide an
overview of villages potential and entrepreneurs development.
Focus group discussions provide good quality data in qualitative
research designs. FGD approach to obtain detailed information with
homogeneous groups (Rabiee, 2004). FGD was conducted with rural
entrepreneurs, village officials. FGD was conducted after receiving information
from interviews. This study designed a simultaneous FGD for both
entrepreneurs and representatives from the government. Informants were
divided into groups based on the same characteristics. One group was
entrepreneurs and the second group was representatives from the government.
This is to get a more complete perspective. This design makes it easier and
faster to search data. This FGD emphasized the business development strategy
within the Patuk sub-district. It also discusses related to the cognition
development of entrepreneurs.

This discussion will be carried out based on research objectives with the
addition of location profiles and informants' profiles. The first is related to the
general description of the location and informants. Second, the potential for
developing entrepreneurship in the Patuk sub-district will be discussed. The
three business development strategies by rural entrepreneurs. The fourth is
related to the cognition of rural entrepreneurs.
Patuk Sub-District is part of Gunung Kidul Regency. The area of the
district is 72.04 kilometers. Located in the main traffic of Yogyakarta Special
Region province which is close to Sleman Regency. Patuk is the entrance to
Gunung Kidul Regency. The total population is 34,914 people spread over
eleven villages. Most of the labor force is taking care of the household with
12.7% of the total population. The total number of entrepreneurs in Patuk
District is 4120 people.
This research has 33 entrepreneurs as informants. Each business
operates in a different business. entrepreneurs in Patuk who are used as
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informants mostly work in the food industry. The variety of products is

processed food, traditional food, and also culinary. As a key informant, the
study interviewed the head of the Patuk sub-district. Besides that, interviews
were conducted with several village officials in the Patuk sub-district. More
details can be seen in appendix 1. FGDs were also conducted to complete the
data. The FGD was conducted with 26 people who were later divided into two
groups.
Village area Opportunities

Entrepreneurs realize that the patuk sub-district has great potential. Patuk
subdistrict is part of the Gunungkidul Regency, Yogyakarta Province. There is
potential for pioneering tourism villages and ready-made tourist villages. There
is also that from outside Patuk (FDG, December 21, 2020). Tourism in
Gunungkidul regency is one of the main attractions for the economic activities of
the Patuk community. Recently, in the Patuk sub-district, a tourism area based
on village potential is being developed. Generally, Patuk sub-district is a
strategic area because it is an area adjacent to provincial roads. Vehicle traffic
is very busy passing through the patuk sub-district. Unfortunately, the travelers,
as well as the tourists, are just passing through the patuk area. This is very
unfortunate because it could be a potential for mobilizing rural entrepreneurship
in the Patuk area. Geospatial data is strengthening data related to the potential
of the patuk area.
Figure 1. Patuk Geospasial

Source: Google Maps
In the aspect of agriculture, patuk has the potential, including rice, corn,
cassava, peanuts, chocolate, medicinal plants such as ginger, lemongrass,
rambutan fruit, durian, longan, sugar apple, jackfruit. the potential commodities
is not much developed. So far, it has only been sold in the form of commodities
and some of them have developed into processed products in the form of chips
business with unattractive packaging. Other businesses include chicken
and peanut brittle, making tempeh, woodworking, fashion, small food stalls,
traditional food. Various initiatives to develop by exploring processed crystal
guava, chocolate, rambutan skin, into processed products
In addition to potential, there are also problems including loan sharks.
Some entrepreneurs are caught in debt that cannot be paid. They even sell their
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assets, such as house and cattle. This problem is serious enough for residents
to experience so that they are unable to continue their business. for those who
are too big into debt, they leave the village to avoid debt. They still have
difficulty managing their business as well, and also lack of product innovation
and development of ways to market products.
Strategic Planning
The strategic planning in this study analyzes the internal and external in
the Patuk district. Internal and external approaches use a SWOT analysis
perspective. Internal is obtained from the strengths and weaknesses of being
from external analysis with the perspective of opportunities and threats.
Internal Perspective
This internal perspective looks more at these entrepreneurs seeing the
environment near the entrepreneurs involved in activities. The strength
perspective is what they do and feel in doing business activities. The strength
they have varies widely. Most of them put raw materials easily available within
the businessmen environment, both in the village environment and at the district
area. Most of them put raw materials easily available within the entrepreneurs,
both in the village area and in the district area (FGD, December 21, 2021). Raw
materials which tend to be easily available have an impact on the price offered
which tends to be stable and competitive when compared to its competitors.
They also provide good service to consumers. The entrepreneurs. try to provide
quality that is maintained. the character of a rural person in Patuk is tenacious,
patient, and hardworking.
The weaknesses they have are varied widely. The biggest weakness is
the lack of product innovation. The products are only the imitation of the existing
product. They are not yet able to develop a unique or innovative product to be
offered.They produce by imitating existing products. another problem they have
is marketing. there is still no marketing map, especially for markets outside his
rural area. Moreover, regarding distribution, it does not yet have an extensive
network. aspects of the production process they still use simple equipment, raw
materials have a short lead time. if using machines, they experience difficulty. to
maintenance repair production equipment. Another weakness is financial
management skills. they often feel a lack of financial capital. some of them
borrow money from a loan shark. they have trouble repaying the loan.
External Perpective
The opportunity is big because it is in the tourism traffic area. Gunung
Kidul Regency is projected as a tourism development area. The Patuk area is
an area that is passed by tourists. even in the patuk district itself, village-based
tourism is developed. One of the impacts is the emergence of a souvenir store
that can be used to introduce products from Patuk. besides those, many shops
are selling daily necessities and small restaurants that can be used to sell
products (FGD, December 21,2020). The people in the Patuk village tend to
have social characteristics with a communal culture. they have a good
relationship. communication between them also went well. they always maintain
the customs of Javanese manners. the government is also involved in the
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development of rural entrepreneurs. government events can be used to

introduce the products of entrepreneurs. not only the government, there are
external parties also involved in such as universities that hold training both
product development training and capacity building training. There is training
from outside parties to develop such as from universities. The traditional market
environment outside the patuk area is still the target market choice. Raw
materials are easy to find not only around the patuk area but also outside the
relatively close distance. The opportunities seen by entrepreneurs are market
opportunities, community character and external support to develop knowledge
and skills.
Threats to entrepreneurs come from the social character, competitors of
similar products, the continuity of raw materials, and the purchasing power of
the surrounding community. the communal culture of the patuk community in
addition to bringing opportunities also creates threats. Entrepreneurs who join
an organization often have misunderstandings. Rural residents who have
disagreements can destroy harmonization and eventually choose to walk alone
and even choose to no longer run a business. competition for similar
businesses is still the biggest challenge. similar products are still often found in
other areas, so that gave rise to a lot of competition in the market. raw materials
sometimes there are vacancies of staples at the vendor. there are times when
they don't get the raw materials. This is because they still use seasonal raw
materials. Also in it is the low purchasing power of the local community and also
difficulties in obtaining business permits. Entrepreneurs have awareness
regarding the problems both internally and externally.
Rural Entrepreneurs think of various strategies to overcome it. Marketing
strategy is still a concern. They think about marketing related to the promotion.
they want to promote products through social media, and through various
village-level meetings such as by women or called PKK1 meetings, as well as
exhibitions held by the government. Entrepreneurs also think about creating
products variations and the amount of product to be produced. They realized
that they were not well informed and had less knowledge about the product. the
innovations they get by engaging universities to train and provide information
and knowledge. During this time they sell to neighbors, sell in traditional
markets, schools, leave them in food stalls, souvenir centers. Human resource
management is also still a problem, they want to find people who are recruited
with sufficient abilities. Their production process is carried out by managing
stock and looking for appropriate technology. The strategies they develop are
mainly related to marketing, product innovation, resource development, and
related to production
Support System
The government through the district government has launched a Rural-
based economic development program. Programs carried out with the One
Village One Product (OVOP) approach. the Patuk district government has been
developing since 2014. This program was inspired by the training conducted at
1
PKK is a government program for the welfare of the population by involving women
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Gadjah Mada University. The government hopes that the OVOP program will
develop local potentials from production to marketing management. The district
government claims that this program has succeeded in increasing the added
value of agricultural commodities. The product consists of rambutan chips, a
kind of nata de coco with the basic ingredients of rambutan, guava chips. The
government also provides support with marketing. The government encourages
citizens to continue to be proud of their products.
For this to be prosperous, it turns out that the community has potential, it
just needs to be encouraged so that there is the ability and intention to be
independent, both products are paid well (Suwardi, Personal Communication
March 13, 2021). Entrepreneurs are encouraged to be more confident to
promote their products. In case the government is also trying to get involved in
promoting the product. the government carries out promotions by giving local
specialties consumption and souvenirs at official government events. not only
patuk regional events but also they introduce products at outside official events
such as events in regional and provinces level.
Rural entrepreneurship development in Patuk also involves universities.
The colleges consist of Sanata Dharma University, Gadjah Mada University,
Sarjana Wiyata Taman Siswa University, Yogyakarta State University, Ahmad
Dahlan University. universities provide training and assistance to develop
distinctive products. They also provide knowledge related to business
management.
Cognition Aspect
The patuk community has a strong value system. they maintain
Javanese culture and manners. Beside culture, they also have religious values.
The values that they follow have an impact on the way they do business. like
they prevented debt from shark loan. district leaders took advantage of this
approach to convince their communities to no longer make loans to shark loans.
It seems that this method was quite successful in preventing the community
from avoiding it. The character of the Patuk person is a person who works hard
and is always enthusiastic, resilient, and patient in carrying out his duties.
Socially they are very connected to one another. This closeness can be an
asset in building rural entrepreneurship.
The social capital they already have can be one of the impetus for
developing a business (Svendsen, Kjeldsen, & Noe, 2010). Not only is this an
opportunity, but also the closeness of the patuk community can also be a
problem. they are afraid of social sanctions. Residents have values so that their
citizens have habits that already exist in the community. The habits are good,
but this habit sometimes raises different opinions. So it's a bit disturbing
business. so hard to grow (FGD, December 2020). They choose not to confront
if they have different perspectives. this is what hinders the development of new
ideas in developing rural entrepreneurship. innovation and creativity need to be
a concern in developing rural entrepreneurship (Rădulescu et al., 2014).
The entrepreneurs in patuk, feel less innovative in developing their
products. They mostly develop existing products. We also have to innovate.
Great potential to make the same product that requires innovation and new
products so that it can make products better and continue to innovate in other
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forms (Riaulo, February 12, 2021) The potential does not provide benefits if the
entrepreneurs do not develop them into innovation. They only tend to imitate
other people both in the village and outside the village. Entrepreneurs imitate
others who have successfully developed a product. Gradually it can create
competition in their business. those who have little financial capital are no
longer able to continue their business because they cannot compete. even so,
the district government continues to encourage new product innovations.
Initially, they refused because they thought it was impossible.
This is due to their tendency not to have sufficient knowledge.
Entrepreneurs need a process to be able to learn and understand the business
they are going to do (Deakins and Freel, 1998). they will learn from a failure
(Lattacher & Wdowiak, 2020). Entrepreneurs in the patuk village need a
breakthrough in both products and marketing. The ideas they get tend to be
hereditary. they learn from the experiences of their predecessors and people
around the village. recently they got a lot of ideas from training. The government
encourages training by involving higher education institutions. the entrepreneurs
are aware of the lack of knowledge so they enthusiastically carry out any
training given to them. Armed with this training, they do business.
This discussion analyses the data findings that have been described
previously. This study develops a model which is the findings of the research.
This model uses the data found. The data has been elaborated on the results of
research that has been elaborated previously. Entrepreneurs have cognition for
strategy from the internal environment and the external environment. The
internal environment is more to the rural community. This involves social
conditions and values prevailing in the rural community. On the other side, there
is external environment involvement to pull rural entrepreneurs. This external
involves the government as well as universities. Illustrated through the following
figure 2/
Figure 2. Cognitive Strategy on Rural Entrepreneurship
The cognition aspects of strategic planning in rural entrepreneurship are

important (Lattacher & Wdowiak, 2020). Entrepreneurs need to develop
knowledge in business activities. The potential in the rural area becomes more
beneficial if they have knowledge and information. Rural entrepreneurs can
also develop potential such as agriculture commodities, potential community
culture, community values. Their learning process determines the direction of
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business. Cognitive process determine their success in continuing business .

The higher desire to seek information and knowledge make the business grows.
The Cognition also increasing innovation (Rădulescu et al., 2014). Rural
are potential can be optimized with sufficient knowledge (Zampetakis &
Kanelakis, 2010). Commodity products can have added value and generate
more income. Agricultural potential, for example, if it does not have sufficient
capacity, it will only sell in the form of commodities. otherwise, if village
entrepreneurs can develop their knowledge, they can sell it in the form of
processed products. Cognition can also avoid entrepreneurs from trouble.
Knowledge about Marketing and business management seem to be problems
that are often experienced by entrepreneurs (Weerawardena & Coote, 2001;
Williams, 2011). Rural entrepreneurs will not borrow from loan sharks if they
can analyse the problem. Entrepreneurs will also realize the importance of
developing a flexibility strategy (Combe & Greenley, 2004).
Sufficient knowledge makes them confident in formulating strategies.
Rural entrepreneurs, who most of them small business owners, need to be able
to think of a strategy that they do. (Wrona & Ladwig, 2015). They need to
analyse their business environment (Tang & Hull, 2012). In fact, they already
have a strategy they want to do. Of course, it is not optimal because they feel
they have limited knowledge and limited reference sources. They formulate a
strategy after receiving insight and reinforcement from the training they have
received. This training is the key for them to have the courage to design
strategies that they did not initially think about.
Business and production that imitates the efforts of others who have
succeeded. If there is a new one, it is not necessarily imitated, so need insight
(FGD, December 21, 2020). Cognition can come from outside the rural
entrepreneur. they also have to interact with the rural community. They are also
required to have a social cognition (Matthews et al., 2018). They tend to follow
society's values. the references they get tend to come from around them. So
that the tendency is trapped in clerical and routine activities, without further
development innovation becomes a problem in doing business (Tang & Hull,
2012). Entrepreneurs are facing competition within similar product. If they do
not develop innovation, they will not able to compete and difficulty to survive.
Unfortunately, the knowledge possessed by rural entrepreneurs is
limited. that's why they need outside support. Support for knowledge to
development can be obtained from government and universities. additional
knowledge makes village entrepreneurs more confident. The knowledge they
have also determine their competitive strategy. They can analyse internal and
external environment to build a strategy. In fact, they have strategy
development. Experience in doing business and looking around enable them to
divide strategies in term to get income.
Rural entrepreneurs have limitations in developing their businesses.
They need the role of other institutions to develop their business continuously
(Escandón-Barbosa et al., 2019; Galindo-Martín et al., 2019). These various
developments require the involvement of the government that provides support
to entrepreneurs. The government provides policies to support rural
entrepreneurs. On the other side, universities have a significant role.
Universities can give insight ideas to develop business. Various universities are
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Year
involved in developing citizen knowledge, such as Ahmad Dahlan University,

Sarjana Tamansiswa University, Sanata Dharma University (Suwardi, Personal
Communication March 13, 2021)
Conclusion
The cognition aspect is a determinant of success for rural entrepreneurs.
Rural entrepreneurs can gain cognition from the village's internal. They got the
idea from their predecessor. They inherited the way, which they have been
doing all this time. Apart from that, rural entrepreneurs also follow the values in
the village. They do business based on the ways that have been done so far.
The pull from the village's external environment is also a determinant of
cognition. Rural entrepreneurs need support to define their strategies. The
external environment of the village can inspire business development ideas.
Rural entrepreneurs also hear a lot from their discourse. The external
environment comes from the government. The government is at the village,
sub-district, and district levels. Apart from the government, rural entrepreneurs
also get insight from universities. They share knowledge with entrepreneurs to
develop their business.
This research has several limitations. Limitations in this study are due to
the pandemic, making it difficult for the process of further observation. More
data should be obtained, but due to various restrictions it is difficult to make
observations. The other side, the object under study is only limited to the sub-
district level spread over several village areas. The Second limitations of using
only qualitative methods. This method can be deeper in analyzing. however, it
just needs a wider scope. In other side, research uses cognition in general as a
variable. cognition is used to see the ability to make strategic planning.
Based on the limitations, the researcher provides suggestions for further
research. First, it uses a wider scope so that it can capture a broader picture
related to cognition. Researchers also provide suggestions that not only use a
qualitative approach but also use a quantitative approach to better provide an
overview of the relationship between variables. Researchers provide
suggestions that not only variable aspects of cognition but also use other
variables such as social cognition.
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Effectiveness of Digital Music Platforms ' Social Media Interaction On Advertising Trust Using Cognitive Aspects

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Jurnal Manajemen dan Bisnis, Volume 22, No 1 (March 2023)

Effectiveness of digital music platforms’ social media

Fakultas Ekonomi dan Bisnis, Universitas Trisakti, Jakarta, Indonesia

Corresponding author: Alviana Aslama Anantia, 122012101008@std.trisakti.ac.id

stay in touch with consumers through online communication channels (Chakti,

Social Media 82,70%

Internet Browsing 75,10%

Watch Movies (Streaming, DVD) 57,80%

Listening to Music/Radio/Podcast 57,30%

Read Books 40,50%

Watching TV (Free to air) 39,50%

Figure 1. Entertainment Activities During Stay at Home

Based on the above phenomenon, social media marketing as an alternative

Apple Music, YouTube Music). Social media networks featuring advertisements

Social media's rapid development has revolutionized how firms interact

On the other hand, consumer knowledge refers to the number of information

it personally or globally and give it a good, negative, or mixed evaluation

Furthermore, brand affection describes the positive emotions that a brand

H6: Social Media Interaction is positively related to Advertising Trust of digital

Figure 2. Conceptual Framework

Table 1. Respondents Characteristics Summary

Table 2. Operationalization of Variables

Result and Discussions

Table 3. Outer Loading of Construct

Table 5. Coefficient Determination

Table 6. Research Hypothesis Testing

with earlier research that found a significant negative relationship between

Table 7. Specific Indirect Effects

mediatiors between Social Media Interaction and Advertising Trust. As seen in

Cepat Medis dan Kesehatan Masyarakat COVID-19 di Indonesia (A. F. Setiawan,

Media Sosial terhadap Kepercayaan Merek (Studi Kasus : Instagram Shopee).

Impact of service quality dimensions on student satisfaction

STIE Adi Unggul Bhirawa, Surakarta, Indonesia

Corresponding author: Suroto, suroto@stie-aub.ac.id

Received: September 1st 2021; Accepted: December 27th, 2021; Published:

Customer satisfaction is a fundamental concept in contemporary theory

trying to help its customers in providing services quickly and precisely.

Figure 1. Thinking Framework

occurrence increases, and if it is negative the opposite is true.

Result and Discussions

Table 1. Instrument test results

Table 3. Logistics Coefficient

Post global pandemic and national paradigm of resilience in

Corresponding author: Muhammad Gunawan Wibisono,

Indonesia has a big potential of development by boosting up the SMEs. The

Figure 1: Vosviewer Density Visualization

Identification of studies via databases and registers

Records identified from

Records screened SMEs in

Reports sought for retrieval Reports not retrieved

Reports assessed for Journal of

Studies included in review

Figure 2: PRISMA MATRIX

Distinctive features were the reason for building a model to promote

Result and Discussion

Resilience Factors Related to SMEs Indonesia

Internal Factors Related to Resilience

External Factors Related to Resilience

In this article, we want to experimentally explore the range of perspectives

Findings related to internal factors related to individual resilience show that

internal resilience, namely attitudes (Fonseca & Azevedo, 2020). Attitude in

that adaptive selling is analogous to working smarter, making plans to determine

Implementing Resilience by Small Medium

Media Sosial terhadap Kepercayaan Merek (Studi Kasus : Instagram Shopee).