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INCREASING MANAGEMENT RELEVANCE AND COMPETITIVENESS
PROCEEDINGS OF THE 2ND GLOBAL CONFERENCE ON BUSINESS, MANAGEMENT
AND ENTREPRENEURSHIP (GC-BME 2017), AUGUST 9, 2017, UNIVERSITAS AIRLANGGA,
SURABAYA, INDONESIA

Increasing Management Relevance and

Competitiveness

Editors
Badri Munir Sukoco, Rahmat Heru Setianto & Nidya Ayu Arina
Universitas Airlangga, Indonesia

Ade Gafar Abdullah, Asep Bayu Nandiyanto & Ratih Hurriyati

Universitas Pendidikan, Indonesia
CRC Press/Balkema is an imprint of the Taylor & Francis Group, an informa business

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ISBN: 978-0-8153-7455-8 (Hbk)

ISBN: 978-1-351-24189-2 (eBook)
 Increasing Management Relevance and Competitiveness – Sukoco et al. (Eds)
© 2018 Taylor & Francis Group, London, ISBN 978-0-8153-7455-8

Table of contents

Preface xi
Acknowledgements xiii
Organizing committees xv

Strategic management, entrepreneurship and contemporary issues

Governance of financial intangible success factors: An option in building business
resilience and sustainability 3
P. Sugito
The influences of the alliance learning process and entrepreneurial orientation on the
strategic alliance performance of Indonesian construction companies 7
R. Handayani & R. Dyah Kusumastuti
Assessing necessity and opportunity-based entrepreneurship: An analysis of demographic
characteristics, propensity for new ventures and entrepreneurial motivation (a study of labor
forces and entrepreneurs in Padang, Indonesia) 13
H. Rahman & D. Lesmana
Critical assessment on zakat management: Zakat scorecard model 17
T. Widiastuti, S. Herianingrum & I. Mawardi
Investigating entrepreneurial orientation impact on project performance in highly regulated
industry: A case of renewable power industry in Indonesia 23
F.A. Firman, R.D. Kusumastuti, H.T. Kurniawan & I.M. Ruky
How to survive in the modern era: Integrated local entrepreneurs, the traditional market
and the modern store 29
P.P.D. Astuti, Y. Setyowati & A.A.G.S. Utama
The influence of Islamic service quality toward bank customer loyalty and satisfaction of
BRISyariah Surabaya 35
M.Q. Fauzi, S. Herianingrum, T. Widiastuti & R.P. Putra
Management accounting practices in micro enterprises in the Sleman Regency, Daerah
Istimewa Yogyakarta 39
A.C. Laksmi & A.P. Putra
The power of finance: The dynamics of female entrepreneurs in fulfilling their financial needs 43
M.R. Rita, S. Wahyudi & H. Muharam
Entrepreneurial orientation in a family business group: The role of the corporate center and its
effect on business unit performance 49
O. Pendrian, K.A. Karnen, R. Rachmawati & R.D. Kusumastuti
Developing entrepreneurship for the performing arts community through an art incubation model 55
J. Masunah & R. Milyartini
Capability to contest on market performance 61
B.M. Sukoco & R.R. Maulana

v
The influence of the socio-economic status of parents toward entrepreneurial attitudes 67
H. Mulyadi, M. Arief Ramdhany & S. Sulastri
Analysis of the factors affecting the elected mode of transportation for workers using an
analytical hierarchy process 71
E. Mahpudin & H. Sulistiyo
Multidimensional approach for assessing service quality in the service industry 75
Y.D. Lestari
The influence of entrepreneurship orientation and management capability on performance
of small and medium enterprises in Bogor 81
A. Setyo Pranowo, H. Hari Mulyadi, Z. Musannip Efendi Siregar &
Y. Hendayana
The influence of family factors on expatriate performance 85
N. Kartika
Is firm size an important determinant for firms in establishing political connections? 91
N.N. Amorita, D. Agustia & I. Harymawan
Integration of corporate social responsibility and resource based theory to create
and capture value 95
N. Nandang & H. Mulyadi

Organizational behavior, leadership and human resources management

Superior performance model of human resources 103
T. Yuniarsih, Disman & M.D. Sugiharto
The impact of fiscal decentralization on economic growth and manpower absorbed at
districts/cities in South Kalimantan Province 109
Muzdalifah & R. Purwono
Work-family conflict and satisfactions: A job demand-resources model perspective 115
J. Sulistiawan
Building employee engagement through transformational leadership, psychological
empowerment and affective commitment 121
P. Yulianti & N. Hamidah
The impact of transformational leadership, learning organization and job autonomy on
creative self-efficacy 127
I.B.G.A. Permana & W. Astiti
Enhancing commitment to organizational change initiative and performance outcomes 131
N.A. Arina & P. Yulianti
The influence of Perception of Usefulness (PoU) and Perceived Ease of Use (PEU)
on the perception of information system performance 137
F. Sayekti & L.E. Wijayanti
Knowledge sharing benefits: The contingency effects of environmental contexts 141
A. Qomariyah
The antecedents of entrepreneurial intentions in students of Airlangga university
(A study of student participants in WEBS in the faculty of economics and business) 147
P. Yulianti & I.G.N.W.H. Saputra
Effect of proactive personality and Organizational Support for Career Development (OSCD)
on career satisfaction and job performance 153
V. Octia & D. Ratmawati
The effects of transformational and transactional leadership on work performance of
middle-level leaders with organizational commitment as mediator: A study of state-owned
company, Pelabuhan Indonesia III Inc. 159
A. Eliyana, S. Maarif & R.J. Sunarsono

vi
Transformational leadership style, team performance and team job satisfaction:
Mediation by levels of cognitive trust and collective efficacy 165
P. Yulianti & R. Sanjaya
The impact of self-efficacy and perceived organizational support on operational
managers’ readiness to change 171
H. Prima & A. Eliyana

Marketing management
Factors affecting customer retention in a priority banking program 179
I.R. Aliyah, S. Soebandhi & A. Baktiono
The impact of messages assertiveness on compliance with perceived importance as a
moderation variable on the anti-cigarette campaign in Surabaya 183
Kristiningsih, R.S. Wuryaningrum & A. Trimarjono
Demographic variables and environmentally friendly behavior in a developing country 189
T. Handriana
Antecedents and consequences of ongoing search information 195
D.T. Firmansyah & D. Mardhiyah
Role of negative brand name perception and religiosity on brand attitude 201
S. Gunawan & R.T. Ratnasari
The effects of good/bad news on consumer responses toward higher education 207
G.C. Premananto & M.H. Hanafiah
Examining leadership style and advertising evaluation on employees’
customer focus 211
R.A. Aisyah & N.A. Arina
The effect of airline sale promotion types on consumers’ attitudes toward brand
and purchase intentions 217
M. Kurniawati
The influence of celebgrams, e-WOM, and pictures on impulse buying 221
Hartini, Sri & Uswatun
Value propositions of supermarkets 225
R. Rinawati
Empirical study of perceived quality information and perceived information security
impact on online purchasing in Indonesia 231
L. Lisnawati, L.A. Wibowo & P. Andi
Measuring religiosity and its effects on attitude and intention to wear a hijab:
Revalidating the scale 237
H.A. Wibowo & M.R. Masitoh

Management and economics education

Communication skills of accountants and managers in Indonesia 243
Y.L. Rudianto & A.R. Sridadi
Factors knowledge management and the work motivation of lecturers 249
Rino
The role of talent management in student performance in higher education 253
D. Purwaningsih
Strategy to build universities 257
P. Dewi Dirgantari, B. Widjajanta & L. Lisnawati
Factors affecting the improvement of students’ Grade Point Average (GPA) 261
A.B. Santoso, E.C.M. Simatupang & R.H. Sofyandi

vii
Innovation, operations and supply chain management
Analysis of the small segment credit business process at Bank ABC Indonesia 267
A.C. Saifullah & R.D. Kusumastuti
The identification of defects in rubber slipper production using the six sigma method 271
T.A. Auliandri & M.A. Setiani
The design of service quality improvement in a library by using LibQUAL model and
fishbone diagram 277
F. Wurjaningrum & A. Kurniawan
The strategic role of Indonesia in Global Value Chains (GVC) 283
M.A. Esquivias, D.W. Sari & R.D. Handoyo
Service innovation: The moderating effects of environmental contingencies 289
N. Anridho
Efficiency and total-factor productivity in the manufacturing industry in
33 provinces of Indonesia 295
Muryani
Academic excellence and total quality supply chain management in higher education 301
I. Usman & Windijarto

Financial management and accounting

The influence of usage accounting information on small medium enterprise’s perception 307
S. Mintarti, D.M. Sari & T. Fitriastuti
Determinants of banks’ net interest margin in five South East Asian countries 311
M. Gitanadya & R. Setiawan
The effect of monetary policy and macroeconomic variables on foreign portfolio investment in
Indonesia 317
N.F. Anne & R. Purwono
Internal factors, external factors, and bank liquidity in Indonesia 325
I.M. Sudana & A.F. Akbar
The obstacles in developing Indonesia’s sovereign sukuk 329
N. Laila, F.F. Hasib & M. Anshori
The effect of trading volume changes on JKSE’s market return 335
M. Madyan, S. Hasan & D.F. Putri
The influence of the profitability indicator, capital and performing loans on the
liquidity of the bank in the Indonesian stock exchange 341
O.V.B. Nainggolan
Corporate governance performance evaluation of banks operating in Indonesia 345
F. Budhijono
What drives finance pattern debt companies to pay dividends in Indonesia? 349
L. Gestanti & G. Memarista
Diversification, firm value and government ownership 355
S.A. Usman & C. Sulistyowati
Do operating costs, investment returns and claims have an effect on contributions? 361
D.F. Septiarini
Crowdfunding new paradigm for financing: Operational pattern of crowdfunding in Indonesia 365
S.R. Arifin & Wisudanto
Different ways to solve the liquidity problem of Indonesian Islamic microfinance 369
I. Mawardi & T. Widiastuti

viii
Determinant of banks stock risk in Indonesia 375
R. Setiawan & R. Anggraeni
Degree of internationalization and firm financial performance 381
F. Ismiyanti
Cost efficiency of Indonesian banks over different groups of capital 385
M. Anwar
Analysis of investor preference in investing on initial public offering 391
M. Sari
Female directors, nationality diversity, and firm performance: Evidence from the mining
industry in Indonesia 397
Y.S. Putri, M. Nasih & I. Harymawan
Sharia governance framework in Islamic banking and financial institutions in Indonesia:
A proposed structure 401
M.I.S. Mihajat
Mediating role of Investment Opportunity Set (IOS) on diversification–corporate value
relationship: Empirical study of manufacturing companies in the IDX, 2013–2015 407
D.W.I. Hartono, B. Tjahjadi, N. Soewarno & Y. Permatasari
Underpricing, operating performance, long-term market performance, and the probability of
conducting seasoned equity offerings of IPO in Indonesian capital market 413
N. Sasikirono, Djumahir & A. Djazuli
The effects of firm size, good corporate governance, and business risk towards financial
performance with corporate social responsibility as the moderating variable 419
N. Soewarno, E.S. Wulandari & B. Tjahjadi
The effect of good corporate governance on financial performance with capital structure
and earnings management as mediating variables 429
N. Soewarno, B. Tjahjadi & B.D.P. Utomo
The impact of IFRS adoption on earnings management in the banking and mining sectors 437
H. Musvosvi
Managerial ownership and corporate diversification in the family and non-family businesses 441
T. Perdana & N. Fitdiarini
CEO gender, corporate finance decisions, and performance 445
R.H. Setianto & J. Mahbubi
Empirical testing of the accuracy of various theory models to measure the value of the firm 449
N.D. Kusumaningrum & I.M. Narsa
Determinant variables of the performance rating of banks operating in Indonesia 453
Sugiarto
Fraud prevention analysis in the financial management of local government 457
A.A. Nugroho & Y.N. Supriadi
The effect of leverage and profitability on stock return: A study on the mining sector
companies listed on the Indonesia stock exchange for the period 2011–2015 465
Y. Hendayana, H. Hari Mulyadi, Z. Musannip Efendi Siregar &
A. Setyo Pranowo
Asymmetric information at first seasoned equity offering in the Indonesian
capital market 471
H. Meidiaswati, Basuki & A. Irwanto
Efficiency analysis of economic empowerment program in Surabaya National Amil Zakat
Institution using Data Envelopment Analysis method (DEA) 479
F. Ramadhani & E.F. Cahyono

ix
Impact of interest rates, money supply, treasury bill and borrowing on exchange rate
volatility in Indonesia 485
W. Utama & Nugraha
Determinants of non-performing loan comparative study of banks in Indonesia and Nepal 491
S.K. Singh & I.M. Sudana
Bank specific variable and credit risk analysis on Islamic banking in the world 497
K.A. Effendi & N. Nugraha

Green business
When and how does the business become green? Green knowledge consequence for
management and organization 505
Susminingsih, K. Chandra Kirana & S. Hermuningsih
The role of financial technology for the agricultural sector in Indonesia: Case study of
I-Grow FinTech company 509
T. Widiastuti, R. Sukmana, I. Mawardi, Wahyuningsih & I.W. Indrawan
Gintingan in the Subang district of West Java: An implementation of local wisdom in
sustainable development in Indonesia 515
K. Saefullah

Author index 521

x
 Increasing Management Relevance and Competitiveness – Sukoco et al. (Eds)
© 2018 Taylor & Francis Group, London, ISBN 978-0-8153-7455-8

Preface

International Conferences provide an excellent opportunity to bring together academics from different
countries and backgrounds for the purpose of presenting their research results, critically discussing meth-
odology and findings and improving the quality of research and the impact of the research on society
and science. Furthermore, conferences enable the scientific community to create new networks, to foster
relationships and extend their visibility.
The 2nd Global Conference on Business Management and Entrepreneurship (GCBME) 2017 is an
annual conference co-hosted by Department of Management, Faculty of Economics & Business, Uni-
versitas Airlangga and Business Management Education Program, Faculty of Business and Economics
Education, Universitas Pendidikan Indonesia. The theme of GCBME 2017 is increasing management
relevance and competitiveness.
The theme inspired by the concern of Sumantra Ghoshal that bad management theories are destroying
good management practices. Before that, the dichotomy between rigor and relevance is always becoming
a hot topic in the management field. This conference aims to answer the following question: How might
we accomplish a reconciliation of rigor (academic) and relevance (practitioner) standards to offer organi-
zational competitiveness?
I expect this conference raises two important things in the discussion room and proceedings (based on
Corley and Gioia, 2011): First, theories used in this conference should be problem driven—that is address-
ing a problem of direct, indirect, or long-linked relevance to practice, rather than narrowly addressing the
(theoretical) “problem.” Second, the fact that we are a profession (academia) studying another profession
(management), therefore it needs balancing between theoretical contribution managerial implications. By
doing that, I believe that our research and discussion in this conference could offer something useful for
practitioners (thus increase its competitiveness) while at the same time contribute to the development of
our management field.
I am looking forward to seeing you in GCBME in the near future.

With warmest regards,

Prof. Badri Munir Sukoco, PhD
GC-BME 2017 Conference Chair

xi
 Increasing Management Relevance and Competitiveness – Sukoco et al. (Eds)
© 2018 Taylor & Francis Group, London, ISBN 978-0-8153-7455-8

Acknowledgements

Badri Munir Sukoco, Universitas Airlangga, Indonesia

Ratih Hurriyati, Universitas Pendidikan Indonesia
Ade Gafar Abdullah, Universitas Pendidikan Indonesia
Praptini Yulianti, Universitas Airlangga, Indonesia
Muhammad Madyan, Universitas Airlangga, Indonesia
Didi Sukyadi, Universitas Pendidikan Indonesia
Wann-Yih Wu, Nanhua University, Taiwan
John Nowland, Illinois State University, USA
Ikuro Yamamoto, Kinjo Gakuin University Nagoya, Japan
Jon Lovett, University of Leeds, UK
John Paul, Kedge Business School, France
Ranbir Malik Singh, Curtin University, Australia
Nobuhide Otomo, Kanazawa University, Japan
Mohamed Dahlan Ibrahim, Universiti Malaysia Kelantan, Malaysia
Dadang Kurnia, GIZ, Germany

xiii
 Increasing Management Relevance and Competitiveness – Sukoco et al. (Eds)
© 2018 Taylor & Francis Group, London, ISBN 978-0-8153-7455-8

Organizing committees

ADVISORS

Prof. John Paul Prof. Lincoln Arsyad

Prof. Ranbir Malik Singh Prof. Gunawan Sumodiningrat
Prof. Dr. Nobuhide Otomo Dr. Phil Dadang Kurnia
Prof. Dr. Mohamed Dahlan Ibrahim Assoc. Prof. Arry Akhmad Arman
Prof. Dr. Anis Eliyana Assoc. Prof. Dwilarso
Prof. Dr. Muslich Anshari Assoc. Prof. Hardianto Iristidi
Prof. Dr. Fendy Suhariadi Assoc. Prof. Rachmawaty Wangsaputra
Prof. Dr. Sri Iswati Assoc. Prof. Teungku Ezni Balkiah
Prof. Dr. Bambang Tjahjadi Assoc. Prof. Ruslan Priyadi
Prof. Dr. Nanang Fattah Assoc. Prof. Sri Gunawan,
Prof. Dr.Agus Rahayu Assoc. Prof. Dr. Indrianawati Usman
Prof. Dr. Tjutju Yuniarsih Assoc. Prof. Yudi Aziz
Prof. Dr. Disman Assoc. Prof. Lili Adiwibowo
Prof. Dr. Suryana Assoc. Prof. Vanessa Gaffar
Prof. Dr. Eeng Ahman Assoc. Prof. Chaerul Furqon
Prof. Dr. Ratih Hurriyati Vina Andriany MEd, PhD
Prof. Ina Primiana Tutin Ariyanti, PhD

CONFERENCE CHAIR

Prof. Badri Munir Sukoco, Ph.D

COMMITTEES

Dr. Tanti Handriana

Rahmat Heru Setianto, SE, M.Sc.
Nidya Ayu Arina, SM, MSM.
Dr. Masmira Kurniawati
Made Gitanadya, SE, MSM.
Ratri Amelia Aisyah, SM, MSM.

xv
Strategic management, entrepreneurship and contemporary issues
 Increasing Management Relevance and Competitiveness – Sukoco et al. (Eds)
© 2018 Taylor & Francis Group, London, ISBN 978-0-8153-7455-8

Governance of financial intangible success factors: An option in

building business resilience and sustainability

Pudjo Sugito
University of Merdeka Malang, Malang, Indonesia

ABSTRACT: The aim of this research is to analyze the financial intangible success factors related to
business resilience and sustainability. The research population consists of small and medium sized enter-
prises in the Probolinggo region, East Java, Indonesia. The sampling technique is proportional random
sampling. The number of respondents is 100, which is the minimum requirement needed for the data
analysis techniques of structural equation models. Primary data was collected by a questionnaire. Further,
it will be analyzed by using a structural equation model technique. Based on the results of the data analy-
sis, it is revealed that financial intangible success factors significantly influence business resilience. Also,
financial intangible success factors significantly influence business sustainability. In addition, business
resilience also affects business sustainability. This means that the governance of financial intangible assets
are extremely important for developing small and medium sized enterprises. In other words, this will be
an option for building business resilience as well as for sustainability.

Keywords: Financial Intangible Success Factors, Resilience, Sustainability

1 INTRODUCTION and business sustainability of Small and Medium

Several researches have revealed that there is cur-
rently a significant shift in the utilization of cor-
porate assets. Evidently, more and more intangible
assets are being utilized in order to realize organi-
zation targets (Zigan & Zeglat, 2010). This is due
to the huge benefits of intangible assets to organi-
zational performance. Reynoso (2008) and Durst
(2015) also confirm that the intangible assets, such
as collaborations, skills, knowledge, innovation,
patents and other intellectual property, leadership,
image and reputation, and culture, are now the
essence of competitive advantage.
Interestingly, according to Feindt, Jeffcoate,
and Chappell (2002), the Financial Intangible Suc-
cess Factors (FISFs) are important components in
achieving the vision and mission of the corpora-
tion. Moreover, Wiley (2012) and Olavarrieta and
Friedmann (1999) support this idea. There are four
dimensions that are dictated by financial intangible
assets, namely, knowledge, image, brand value, and
other immaterial assets. Therefore, current finance
managers should concern themselves with the
financial intangible assets in order to improve com-
petitiveness and profitability. In Short, the financial
intangible success factors play a significant role in
meeting the business organization goals. Therefore,
the purpose of this research is to analyze the effect
of the governance of the FISFs on the resilience
Enterprises (SMEs) in Probolinggo.
The classification of the key success factors of
small enterprises is based on the governance of the
utilization of tangible assets and intangible assets,
and also according to financial and non-financial
factors. Interestingly, the successes of the small
enterprises are also built through the utilization
of financial intangible assets. These assets consist
of brand value, goodwill and the value of immate-
rial properties. Therefore, the study of the utiliza-
tion of financial intangible assets becomes really
important, due to the given assets that are owned
by many small enterprises.
Subsequently, Li and Wang (2014) proposed
a framework that includes the corporate success
of the marketing concept, a good management
approach and ethics organizations to meet the
needs and desires of various public organizations.
Furthermore, in the long term, it may ensure the
satisfaction of the needs of the organization itself.
Flamholtz and Aksehirli (2000) found that there
is a significant relationship among the develop-
ment of the six critical success factors, which are
the market, products and services, resource man-
agement, operating systems, corporate culture, and
the overall financial success of the organization.
Meanwhile, Lonnqvist (2004) stated that the fac-
tor of business success is determined by the tangible
and intangible assets. Hence, this explains why the

3
intangible success factor is classified into financial Table 1. Indicators of research variables.
and non-financial. The financial intangible success
factors include brand value, goodwill, and the value Variables Indicators Notation
of immaterial properties. On the other hand, the
Financial Intangible Brand value X1
non-financial factors consist of competencies, cus- Success Factors Goodwill X2
tomer satisfaction, customer retention, innovation, (FISFs) (Lonnqvist, Value of immaterial X3
motivation, and personnel satisfaction. It should 2004) properties
be noted that the majority of SMEs did not have Business resilience Adaptability X4
any tangible assets of great value. Therefore, these (Linnenluecke, 2017) Responsive X5
potential assets can be optimized to improve the Collaborative X6
business sustainability by optimizing the govern- Market readiness X7
ance of financial intangible success factors. Survivability X8
Burnard and Bhamra (2014) stated that business Business sustainability Market growth X9
resilience is the ability to adapt and respond to a (Shapiro, 2013) Customer growth X10
variety of business interruptions for the purpose of Profit growth X11
maintaining the continuity of its operations, to be Asset growth X12
reliable and to enable the entity to continue grow-
ing and developing. Carmeli and Tishler (2014),
supported by Chang and Hsieh, (2011), explained
that true business resilience originated from its and sustainability. Based on the literary review,
ability to understand correctly how to run a busi- the research variables include the FISFs, busi-
ness based on the performance of the business. ness resilience, and sustainability. By definition,
Management should not only focus on the issues the FISFs are financial intangible factors that
that cause organizations to work defensively, but become the key reasons for the success of busi-
must also use a proactive approach to face unex- ness continuity. The indicators that the FISFs
pected problems. In this way, the resilience of the cover are brand value, goodwill, and the value of
business will be effective and efficient. Linnen- immaterial properties. Meanwhile, business resil-
luecke (2017) revealed that there are six elements ience is the ability not only to adapt and respond
of business resilience. They consist of integrated to interruptions to the business quickly in order
risk management, business continuity, regulatory to sustain its operations, but also to become a
compliance, security data protection, knowledge reliable partner that allows it to continue grow-
and skills, and market readiness. ing. Sustainability indicates a business continuity
According to Ciarelo et al. (2014), the disclo- that is apparent from positive asset growth. The
sure of financial intangible assets has turned out indicators of the research variables are as follows.
to have had a major contribution to the achieve- The research population consists of small and
ment of profit and business continuity beyond medium sized enterprises in Probolinggo. Based
the contribution of physical assets. In addition, on the results of the survey, there are 385 SMEs
Husnah (2013) stated that the reinforcement of in this region, of which 100 SMEs have been the
financial intangible assets, which produces a larger respondents. The number of respondents is in
company because of the company’s earnings, is accordance with the requirements of the structural
relatively higher. Therefore, the research hypoth- equation model (Ferdinand, 2013). This research
eses are (1) financial intangible success factors sig- uses a valid and reliable questionnaire for collect-
nificantly influence the resilience of the business; ing data. Further, the primary data was analyzed
(2) financial intangible success factors significantly by a Structural Equation Model (SEM).
influence sustainability; and (3) business resilience
has a significant effect on sustainability.
3 RESULTS

2 METHOD The small and medium sized enterprises in Probol-

This research is an explanatory research with
quantitative methods. Data collection was
achieved by using a survey. The research popu-
lation consists of small and medium sized enter-
prises in Probolinggo. The research variables
consist of exogenous and endogenous variables.
In this study, FISFs are exogenous variables.
The endogenous variables are business resilience
inggo consist of the timber industry, non-metallic
minerals, manufacture of metal goods, food and
beverages, textiles, leather, and the ceramics indus-
try. Based on the primary data analysis by the
structural equation model, the path diagram is
demonstrated in Figure 1.
As is seen in Figure 1, there is linkage between the
financial intangible success factors, business resil-
ience and sustainability. Based on this Figure, the

4
Figure 1. Linkage of FISFs, business resilience and sustainability.

financial intangible success factors affect business Table 2. Regression weights.

resilience, and also directly affect sustainability by
Estimate s.e c.r. p
a coefficient of 0.42 and 0.33. Then, business resil-
ience affects sustainability by a coefficient of 0.51. Business resilience <--- 0.42 0.14 3.00 0.009
Subsequently, the test is done to determine Financial intangible
whether the research variables can be utilized in success factors
order to confirm those variables that can be shared Sustainability <--- 0.39 0.10 2.60 0.004
with other variables. The latent variables are Financial intangible
assessed using analysis phases. The loading factors success factors
should be greater than or equal to 0.40. If the load- Sustainability <--- 0.51 0.11 4.63 0.000
ing factor is lower than 0.40, it will be deemed that Business resilience
the dimensionless variables, together with other Source: Primary Data, 2017.
variables, will explain a latent variable. The load-
ing factors for the variables in this confirmatory
analysis are 0.54; 0.49; and 0.70. Thus, it can be
concluded that these variables are jointly present- 4 DISCUSSION
ing undimensionality for latent variables.
Further, weight regression analysis was con- Before discussing the research results, a research
ducted to determine the strength of the dimensions hypothesis test was done. The hypothesis testing
that form its latent factor by utilizing the test of the was based on primary data analysis by using the
regression weight generated by the model. Judging structural equation model technique. The result is
from this result, each indicator of each latent vari- shown in Table 2. Hypothesis testing was done by
able has already qualified, so it can be accepted. analyzing the value of the critical ratio (cr) and the
It has a value of loading factor (coefficient λ) or value of probability (p) on the results by regres-
regression weight or standardized estimate signifi- sion weights, compared with the required statisti-
cant to the value critical ratio (cr) of above or equal cal limits. The value must be greater than 2.00 for
to 2.0. The results of this latent variable regression the critical ratio and below 0.05 for the probabil-
weight can be seen in Table 2. From these results, ity. Table 2 describe the regression weights.
it can be seen that each of the indicators of each As shown in Table 2, the financial intangible
dimension has a value loading factor or standard- success factors significantly affect the business
ized regression weight or significant estimate to the resilience; the financial intangible success fac-
value of critical ratio > 2.0. In short, all of the indi- tors significantly affect the sustainability; and the
cators are eligible. Further, due to the probability business resilience significantly affects the sus-
values are less than 0.05. It can be concluded that tainability. This is due to the fact that the critical
the indicators forming latent variables have shown ratio values are more than 2.00 and the p values
unidimensionality. are less than 0.05. This means that the financial

5
intangible success factors and business resilience
significantly affect business sustainability. These
research findings support the findings of Zigan
and Zeglat (2010) in their article on the intangi-
ble resources performance measurement systems
of the hotel industry, in which the intangible asset
has a positive role in building a business continu-
ity. This also agrees with the ideas of Carmeli and
Tishler (2004), in their article about relationships
between organizational intangible elements and
organizational performance. Furthermore, these
findings reinforce the notion of Linnenluecke
(2017), that intangible assets affect the develop-
ment of the business. In addition, this also sup-
ports the opinion of Durst (2015). In brief, the
research findings support the findings of several
previous researches, that the governance of finan-
cial intangible assets can be an option in achieving
business continuity.
5 CONCLUSION
Based on the discussion, it can be concluded that
the financial intangible success factors significantly
influence the business resilience and sustainability.
Furthermore, the business resilience influences
business sustainability. This means that when a
business entity wants to build their resilience and
sustainability, the manager should optimize the
utilization of financial intangible assets such as
brand value, goodwill and the value of immaterial
properties. In this way, the small and medium sized
industries will have better prospects.
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 Increasing Management Relevance and Competitiveness – Sukoco et al. (Eds)
© 2018 Taylor & Francis Group, London, ISBN 978-0-8153-7455-8

The influences of the alliance learning process and entrepreneurial

orientation on the strategic alliance performance of Indonesian
construction companies

R. Handayani & R. Dyah Kusumastuti

Universitas Indonesia, Depok, West Java, Indonesia

ABSTRACT: This study explores strategic alliances in the Indonesian construction sector, especially in
terms of the impacts of the learning process and entrepreneurial orientation in their alliance organiza-
tions. The study aims to provide insights concerning the critical part of the learning process in the organi-
zation, which is implemented in four procedures: articulation, codification, sharing, and internalization.
This is to guarantee that the motivation behind the establishment of an alliance can be fulfilled and that
it will gain a competitive advantage. Moreover, this study will also give an outline of the entrepreneurial
orientation that is required to change operational propensities or routines that are instilled inside the rigid
structure of the organization, and thus, can overcome the issue of inertia by creating initiatives, imple-
menting higher risk-taking and becoming more proactive in entering the new market. A survey with 62
respondents, representing alliances in construction companies in Jakarta, is conducted. The survey data is
analyzed using structural equation modeling, and the results show that the alliance learning process and
entrepreneurial orientation influence alliance performance.

Keywords: Strategic alliance, alliance learning process, entrepreneurial orientation, alliance performance

1 INTRODUCTION through strategic alliances (Mudambi & Tallman,

The Indonesian government is currently focus-
ing on infrastructure development in all regions
of Indonesia. This policy has opened up a great
business opportunity for the Indonesian construc-
tion sector. On the other hand, high demand for
residences in urban areas that are not supported
by the availability of sufficient land causes state-
owned enterprises and private companies to race
to construct buildings in strategic locations.
The construction sector is a high-risk business
because it involves a large investment value with
high safety standards. Then again, tight rivalry
forces the businesses to compete with low costs and
new innovations so that they can beat the competi-
tion in different ways. One of the strategies used
to beat the competition is through the distribution
of risks. A construction company may co-operate
with a few different companies in its supply chain
or process network, and use them as subcontrac-
tors (Chung & Ng, 2006).
Companies need a variety of resources and
the ability to compete effectively. Resources and
capabilities can be obtained through the acquisi-
tion, either developed internally or by establishing
co-operative relationships with other companies
2010; Bierly & Gallagher, 2007).
The objective of this research is to gain insights
regarding the relationship between strategic alli-
ances, entrepreneurial orientation and alliance per-
formance within the context of strategic alliances
in Indonesian construction companies.
2 THEORY AND HYPOTHESES
Researchers in strategic management start to
develop the concept of strategic alliance by inte-
grating the perspective of the resource-based view
(Barney, 1991) with the perspective of the eco-
nomic transaction costs (Williamson, 1989), as
well as the knowledge-based view of the firm (Kale
et al., 2002; Mudambi & Tallman, 2010; Emden
et al., 2005).
One basic premise of the strategic alliance is
that firms should concentrate on internal strategic
activities that are important to them, while other
activities can be outsourced to companies with
specific expertise or a company that has a focus on
those activities, which can offer economies of scale,
as well as the benefits of wider organizational
learning. This premise refers to the viewpoint of

7
economic transaction costs (Williamson, 1989),
whereby the company uses alliances to reduce their
risks and costs (Franco & Haase, 2015). By utiliz-
ing this alliance, companies can reduce the costs of
negotiation, co-ordination, and the monitoring of
inter-company transactions and corporate govern-
ance (Williamson, 1989).
Strategic alliance is a relationship that is deliber-
ately constructed between two or more independent
companies, with activities involving the exchange,
sharing, or co-development of the resources or
capabilities to achieve mutual benefits (Gulati,
1995; Kale et al., 2002; Kale & Singh, 2007).
A strategic alliance can be formed by developing one
or more value chains, and has a variety of organi-
zational configurations that are based on the inclu-
sion of equity in the relationship, such as a joint
venture, which is one kind of partnership based on
equity or investment (Kale & Singh, 2009).
As a reliable strategy for achieving a competi-
tive advantage in a dynamic environment (Bierly &
Gallagher, 2007), it is not easy to have a successful
alliance. For that reason, we need to understand
how learning occurs in a successful alliance and
how entrepreneurial orientation will address the
problem of inertia, so that routines that are embed-
ded in the company, as well as a rigid structure, will
not hinder the learning process.
Strategic alliance can be seen as a formal agree-
ment that could configure a contractual arrange-
ment (not involving capital sharing) or establish
an equity arrangement (involving capital sharing).
The alliance may also initiate a new corporate
entity or just form a joint operation without the
establishment of a new corporate entity (Yoshino &
Rangan, 1995).
2.1 Alliance Learning Process (ALP)
This study utilizes the alliance learning process in
order to conceptualize the process that the firms
undertake to learn, accumulate, and leverage alli-
ance management know-how. By doing so, firms
are able to develop or improve their partnering
skills and thereby achieve a better alliance per-
formance. These partnering skills are routines or
practices that are used to better manage different
phases in the life cycle of any alliance they engage
in, for example, alliance formation and partner
selection, alliance negotiation, formulation of
alliance design, post-formation alliance manage-
ment, and so on. The alliance learning process can
help firms to develop alliance capability and have
greater alliance success (Kale & Singh, 2007).
Based on the perspective view of a company’s
knowledge base, Kale and Singh (2007) indicate
that organizations can improve their skills in man-
aging tasks assigned to them by gathering and
8
applying knowledge that is relevant to the task.
Here, the company conducts the alliance learning
process by applying four processes (the articulation
of knowledge, codification of knowledge, sharing
of knowledge, and the internalization of knowl-
edge). With these activities, the company studies,
accumulates, and spreads the influence of alliance
management knowledge gained through the alli-
ance, as well as from others.
Using this concept, the manager of the com-
pany in an alliance serves as the main storage of
important experiences of alliance management,
as well as knowledge gained from the experience
of previous or ongoing alliances. Companies can
take measures to help individual managers in an
alliance to articulate their knowledge of alliance
management. Thus, the company captures and
externalizes the necessary alliance knowledge, so
that other managers in the company can learn
from these experiences (Kale & Singh, 2009).
A company can go a step further by arranging
the accumulated knowledge of alliance manage-
ment in the form of a knowledge object that can
also be used by others, such as alliance manage-
ment guidelines, checklists, and manuals, which
incorporate best practices for managing differ-
ent phases and decisions in the alliance life cycle.
These codification tools and templates can help
managers to assess the suitability of a prospective
alliance partner, develop an alliance agreement,
assess the performance of the alliance, and so on.
The codification process of alliances facilitates the
replication and transfer of best practice within the
company by creating a toolkit for managers (Kale &
Singh, 2007).
Companies can affect the alliance know-how by
conducting the process of knowledge sharing in
order to exchange tacit knowledge and individual
knowledge (possessed by each manager in the alli-
ance) so that they can be spread throughout the
organization. This can be in the form of group or
personal interactions in the alliance committee, task
forces or a special forum for the exchange of experi-
ence and best practice among managers in the alli-
ance (Kale & Singh, 2007; Kale & Singh, 2009).
The fourth process that needs to be undertaken
in this learning process is to internalize and absorb
the relevant knowledge of the alliance management
in various parts of the company through formal
and informal means. This internalization process
emphasizes whether tasks are associated with a
particular alliance, and also the process of appren-
ticeship, where a new manager will work with an
experienced manager in the alliance to gain useful
knowledge. Alternatively, the companies send their
managers on a formal alliance training program
conducted either by the company internally or by
external parties (Kale & Singh, 2009).
 Siren et al., (2016) explain that the strategic
acquisition of knowledge is a process of explora-
tion that allows individuals within an organization
to gather strategic information from their environ-
ment in order to expand their current knowledge.
The most feasible initiative eventually becomes a
formal strategy and generates new products, new
services, or new processes. Therefore, we draw the
following hypothesis.
H1: An alliance learning process has a positive
influence on alliance performance
2.2 Entrepreneurial Orientation (EO)
The concept of EO was originally conceived by
Miller (1983). EO is a strategic construct that
reflects the extent to which firms are innovative,
proactive, and risk-taking in their behavior and
management philosophies; or, stated more con-
cisely, are entrepreneurial in their strategic posture
(Covin & Slevin, 1989). The rapid development of
the EO literature reflects its centrality to both the
strategic management and entrepreneurship fields
(Anderson et al., 2009).
In particular, innovativeness is a tendency to
create and introduce new products, new produc-
tion processes, or new organizational systems.
Risk-taking is the tendency of companies to take
a higher level of risk to try and venture into pre-
viously unknown areas by making a strong com-
mitment, while proactiveness is the involvement in
an opportunistic expansion in order to seize the
opportunities for entering new markets and deal-
ing with competitors (Li et al., 2017).
Previous studies find that EO is associated with
the internal resources of the company, can be
regarded as intangible resources embedded in an
organization’s routines, and is spread among mem-
bers of the organization (Li et al., 2017). Further-
more, the company cannot purchase EO from the
market, but they have to invest a lot of time to cul-
tivate the culture so that EO can be a source of sus-
tainable competitive advantage (Li et al., 2017).
The level of EO is higher when companies are
more open to interaction with the external envi-
ronment, thereby improving their ability to obtain
knowledge-based resources that lead to a higher
level of learning. Likewise, the tendency of compa-
nies showing a higher level of EO is to experiment
with combining new resources, thereby facilitating
the internalization of knowledge-based resources
that will result in an increased level of experiential
learning (Kreiser, 2011).
Companies can increase the level of EO to pro-
duce high performances when they are involved in
alliances. When a company enters a certain alli-
ance, EO will help the alliance to understand the
9
learning process and give them the opportunities
to look for resources in the collaboration (Sarkar
et al., 2001; Teng, 2007; Li et al., 2017).
Compared to conservative firms, companies with
a high level of EO tend to have a better understand-
ing of the importance of the resources contributed
by all of the alliance partners. The company may
identify the entrepreneurial process and procedures
that are effective in managing complex resource
integration activities with uncertain outcomes (Li
et al., 2017). They can also develop their superior
resource management capabilities through the
entrepreneurial learning process (Li et al., 2017),
which will increase the yield of the alliance as a
whole. In particular, corporate alliances with inno-
vative ideas may have more insights into the crea-
tive aspects and can produce promising ideas and
new ways of thinking. Innovative companies tend
to favor the renewal, creation, and introduction of
appropriate co-operative mechanisms in the alli-
ance, which facilitates more effective control over
the process of resource integration. In this way,
innovation achieves a competitive advantage for
the formed alliance, as well as for all of the compa-
nies involved (Li et al., 2017).
Conversely, when a company with a low level of
EO is involved in the alliance, they may be more
concerned with protecting their own resources
rather than with providing sufficient resources to
share (Teng, 2007). This will limit the opportunity
to integrate resources in the alliance, which in turn
can undermine its success (Li et al., 2017).
According to Siren et al., (2016), EO is needed
to overcome the problem of inertia and routines
that are ingrained in the company, as well as a rigid
structure, which will cause a significant threat to
the adaptability of the company in the long term.
Companies that have a high level of entrepreneur-
ship are considered to be better equipped to adapt
to a dynamic competitive environment.
The success of the alliances of construction
companies may also be affected by EO, which
can change the habits involved in running opera-
tions, minimize organization inertia by building
initiative, and increase the willingness to take risks
and be more proactive (Siren et al., 2016). Based
on the above explanations, we draw the following
hypothesis.
H2: Entrepreneurial orientation has a positive
influence on alliance performance
3 METHODOLOGY
We have two major research questions. First is to
find out how far the alliance learning process influ-
ences the performance of the alliance. Second,
whether the EO also has a positive influence on the Table 1. Operationalization of variables.
performance of the alliance. We conducted a survey
of persons in charge of managing alliances in con- No. of
Indicators
struction companies in Jakarta, and the results Latent per
are analyzed using Structural Equation Modeling variables Dimensions Dimension References
(SEM). To simplify the model, we also use second
order confirmatory factor analysis using a latent Alliance Articulation 5 Kale & Singh
variable score technique. The research model is Learning (2007)
presented in Figure 1. Process Codification 4 Kale et al.
(2000)
This study focuses on alliances in Indonesian
Sharing 6
construction companies in Jakarta that have been Internalization 4
formed within five years. Referring to the unit of Entrepreunerial Innovativeness 3 Covin and
analysis that is being used in this study (the alli- Slevin
ance), we involve project managers, project coor- (1989)
dinators, project directors or persons in charge Orientation Pro-activeness 3 Li et al.
in consortiums or alliances as respondents in the (2017)
survey. The total number of respondents in this Risk-Taking 3 Miller
study is 62, representing 62 strategic alliances from (1983)
Alliance 5 Kale & Singh
34 construction companies in Jakarta. Whereby (2007)
nine companies are state-owned enterprises (26%) Performance Kale et al.
and 25 companies are private national companies (2000)
(74%). Variables, dimensions of each variable and Li et al.
the number of indicators in each dimension can be (2017)
seen in Table 1. Total No. of Indicators 33
In the pretest, questionnaires with six Likert-
scale questions are distributed to 20 respondents
with the same qualifications. We also interview all 4 RESULTS
respondents to collect information on issues of
interest. This pretest is important in order to get The analysis and interpretation of the model using
feedback for the questions posed in the question- SEM requires two stages: 1) analysis of validity
naire and to ensure that the respondents under- and reliability through the measurement model,
stand the questions. and 2) analysis of the structural model.
In order to determine the sample in this study,
we first identify construction companies that
4.1 Measurement model
have conducted strategic alliances in their busi-
nesses. Then, we identify the right persons to be Assessment of the measurement model entails
respondents, based on two criteria: 1) the per- examining the reliability of individual items to
sons must be responsible for the alliance man- analyze internal consistency and validity tests to
agement, such as the project director, project analyze latent constructs with reflective
manager, manager of corporate development, The result of the reliability test shows that all
or team coordinator for certain alliance projects; indicators and dimension variables have a Cron-
and 2) the persons have the ability to answer the bach Alpha coefficient above 0.7 and Variance
questionnaire. Extracted (VE) above 0.5; which means that all
of the variables in this model have internal con-
sistency. The result of the validity test shows that
all question items have loading factors above 0.5.
This means that all items are valid to measure the
abovementioned constructs.

4.2 Structural model

This research uses seven Goodness-of-Fit (GoFI)
indicators to give information about the GoFI of
the model, namely p-value = 0,04112 (marginal fit),
RMSEA = 0,079 (< 0,08: good fit), GFI (> 0,90:
good fit), AGFI (> 0,90: good fit), CFI (> 0,90:
good fit), NFI (> 0,90: good fit), RFI (> 0,90: good
Figure 1. Research model. fit) (Wijanto, 2015).

10
 The empirical data shows that 6 out of 7 GoFI
indices have higher values than the cut-off values.
Only the p-value indicates marginal rate of fit.
Thus, it can be concluded that the overall fit of the
model is good.
Empirical data explained by chi-square = 66.29;
Degree of freedom = 48; P-value = 0,04112 yields
T-values for the relations of dimensions to latent
variables are in the range between 6.39 to 14.34
or all are above 1.96. Thus, it can be said that all
dimensions in this whole model have significant
influence on the latent variables.
The T-values between the alliance learning proc-
ess and alliance performance is 2.48, and between
EO and alliance performance is 1.98. These indi-
cate that H1 and H2 are supported by the data.
5 DISCUSSIONS
The empirical study proves that alliance perform-
ance at construction companies in Jakarta is
directly influenced by the four stages of the learn-
ing process that occurs in alliances (Alliance Learn-
ing Process). This is in accordance with the results
of previous research (Kale & Singh, 2002), that in
order to understand the things that happen during
the process of upgrading the alliance management
skills, companies can focus their attention on the
accumulation of knowledge and the four stages of
the alliance learning process.
In the case of construction companies in Jakarta,
they make deliberate efforts to learn, accumulate
knowledge, and disseminate knowledge and inter-
nalize knowledge management alliances, so that all
companies are able to develop their alliance capa-
bilities and to achieve the goal of alliance, which
is to complete the project on time through innova-
tion breakthrough in the form of the utilization of
the latest technology in the field of construction.
Empirical studies in this study also prove that
EO has a direct influence on alliance performance,
which is in accordance with previous studies (Li
et al., 2017). So, it can be concluded that construc-
tion companies with high levels of EO, through
deliberate efforts to take risks, to proactively com-
pete and to continuously develop new ways or new
mechanisms for creating innovation, will be able to
produce a better alliance performance.
Out of the three dimensions that reflect EO, the
most influential dimension for the entrepreneurial
orientation mindset of construction companies in
Jakarta is proactiveness. This is because construction
companies in Jakarta have a mindset to always ini-
tiate newer and different actions compared to their
competitors. The companies also face uncertainties,
so they have the mindset to always apply an active
and adventurous attitude and to try new things.
11
Meanwhile, the performance of the construc-
tion company alliance in Jakarta is reflected more
by the level of corporate satisfaction with the alli-
ance in general, in the hope that the company can
improve its competitive position and can achieve
its main goal through alliance.
This study provides useful implications for alli-
ance managers on how they can achieve optimal
results from established alliances by performing
articulation, codification, sharing and internaliza-
tion processes.
In addition, alliance managers can also take
advantage of EO and their relationship with part-
ners in order to maximize the performance of the
alliance. Practitioners must recognize the impor-
tance of EO in managing the alliance. The result
of this study also reinforces the belief that com-
panies with strong EO tend to be better at finding
opportunities for entrepreneurial alliances and in
collaborating with those opportunities. Therefore,
to achieve superior alliance performance, managers
need to take steps that encourage efforts to create
entrepreneurial attitudes in each of their actions
and develop their own EO capabilities, such as
encouraging companies to take unconventional
actions and improve their innovative skills.
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during our stay amongst the ice. When I say “in a rush” it is only
relatively speaking. For a rush was impossible in our circumstances.
The pilot’s room offered good sleeping accommodation for two people
if they went to bed quietly and carefully. There were so many uprights,
struts, and pipes that our bedroom had the appearance of a birdcage.
The making of a miscalculated movement landed one against a pipe or
a strut, sometimes both. In addition to this one could not stand at full
height. To speak of a rush under such conditions is therefore stupid.
The sight which met us when we put our heads through the trap-door
was interesting, but not altogether inviting. It was interesting to note
how much four desperate men can straighten out. The pool we had
made was now covered with ice in the center of which N 25 was stuck.
The pressure was tremendous and a catastrophe seemed
unavoidable. Gathering all his strength, Riiser-Larsen sprang like a
tiger. He jumped high in the air in order to land anywhere on the ice
which jammed the seaplane. The result was always the same. The ice
broke under him without resistance. Omdal had got hold of a tool (I
don’t know which one) and helped his comrade splendidly with its aid.
Larsen pushed for all he was worth against the seaplane’s nose and
tried to free it from the ice pressure. By this united work they managed
to loosen the machine about 45° and thereby lighten the pressure
against the sides. In the meantime Ellsworth and I were occupied in
putting the provisions and equipment on the old ice. We were masters
of the situation at last, but it was a near thing that time.
To return to our old quarters was unthinkable, so we looked round
for a safe place somewhere else. We lay in a favorable position for
crossing to N 24 and decided it might be wise to pursue this course.
There was a possibility that we might reach it by way of the new ice,
but this seemed unlikely after our last experience. However we would
try our best to get over because it would be an advantage to be able to
use N 24’s petrol without transporting it. Moreover it appeared that
conditions across there were calmer and offered a safer resting place.
That this was not the case we shall see later.
Thus we began again to hack and to level and by breakfast time
the track was finished. Exactly as though we ourselves had dispersed
it the fog lifted, and we could soon start. This reminds me of an
amusing occurrence, amusing for others, but not exactly for me. On
account of the small accommodation in the machines it was necessary
for us always to move about in tabloid form, bent, drawn together and
compact. The result of this was cramp, sometimes in the legs, in the
thighs, in the stomach, in the back. These attacks came on at the most
inopportune moments and the martyr was a never-failing object of
general amusement. Everything was ready that morning for departure
and I suddenly remembered my glasses which I had forgotten in the
mess and which I now rushed to fetch. But it was a mistaken move on
my part. My first hasty jerk gave me cramp in both thighs with the
result that I could not move from the spot. I heard titters and giggles
and notwithstanding the infernal pain I could not do otherwise than join
in the general amusement.
The second start was not more fortunate than the first. The ice
broke all the way and N 25 became famous as an icebreaker. One
good result came from it, however, namely, that we got near to the
other machine. That presented a sad appearance as it lay there lonely
and forlorn with one wing high in the air, and the other down on the ice.
They had been lucky enough to get its nose up on to a grade of the old
ice floe, but the tail lay right out in the ice.
The conditions here seemed quite promising. We had an open
waterway about 400 meters long with fine new ice quite near. The third
attempt to start was undertaken the same afternoon but without result.
We decided to join up the waterway and the new ice. It was possible
that the great speed one could attain on the waterway would carry one
up onto the ice and if that happened there was a big chance of rising in
the air as the track would then have become about 700 meters long. At
2 a.m. on the 4th June we started the work, continuing all day. As by
eventide we had got the track finished, down came the fog and
prevented us from starting. A little later the ice got rather lively,
beginning to screw during the night. Fortunately it was only the new-
frozen ice, but even it was eight inches thick. There were pipings and
singings all round us as the ice jammed against the machine. The
methods and tools we now used were most original. Dietrichson armed
himself with a four-yard-long aluminium pole with which he did
wonderful work. Omdal used the film camera tripod, which was very
heavy, ending in three iron-bound points. Every blow therefore was
trebled and was most effective. Riiser-Larsen was the only one who
had brought rubber boots with him; these reached to his waist. As the
ice encroached it was met by ringing blows. The battle against it
continued the whole night and by morning we could once again look
back upon a conquest. Meantime the old ice had crept up nearer to us.
It now appeared as though the “Sphinx” was taking aim at us; this was
an ugly forbidding iceberg, formed in the shape of the Sphinx. The
movements of the ice had caused the sides of the waterway to set
together and our starting place was ruined again. The fog lay thick on
the 5th of June while fine rain was falling. The ice cracked and piped
as though it would draw our attention to the fact that it still existed.
Now what should one do?
With his usual energy Riiser-Larsen had gone for a walk that
afternoon amongst the icebergs accompanied by Omdal; they wished
to see if they could find another place which could be converted into a
starting place. They had already turned round to return home, as the
fog was preventing them from seeing anything, when suddenly it lifted
and there they stood in the center of the only plain which could be
used. This was 500 meters square and not too uneven to be made
level by a little work and patience. They came back happy and full of
hope and shouted to the “Sphinx”: “You may be amused and smile
even when others despair—even when the position is hopeless we still
sing with pleasure aha! aha! aha! Things are improving day by day.”
The “Sphinx” frowned! It did not like this!
 COLLECTING SNOW BLOCKS FOR A RUN-WAY
The way to the plain which the two men had found was both long
and difficult, but we lived under conditions where difficulties frightened
us no more. First of all the machine must be driven there—about 300
meters through new ice to a high old plain. Here we would have to
hack out a slide to drive the machine up. From here the road crossed
over to the Thermopylæ Pass, which was formed by two moderately
sized icebergs, and ended in a three-yards-wide ditch over which the
machine must be negotiated on to the next plain. On the other side
one could see the last obstacle which must be overcome in the form of
an old crack about five yards wide with sides formed of high icebergs
and loose snow—rotten conditions to work in. Early on the morning of
the 6th the work was started. After breakfast we took all our tools and
attacked the old ice where the grade should be built. In order to get to
this spot we had to pass round a corner which took us out of sight of
N 25. Under general circumstances one would not have left the
machine unattended, but conditions were otherwise than general and
we had no man we could spare. Singing “In Swinemunde träumt man
im Sand,” the popular melody associated with our comfortable days in
Spitzbergen, we used our knives, axes, and ice-anchor to the best
advantage, and fragments of ice flew in all directions. It is with pride
and joy that I look back on these days, joy because I worked in
company with such men, proud because our task was accomplished.
Let me say quite frankly and honestly that I often regarded the
situation as hopeless and impossible. Ice-walls upon ice-walls raised
themselves up and had to be removed from our course; an
unfathomable gulf seemed to yawn before us threatening to stop our
progress. It had to be bridged by cheeky heroes who, never grumbling,
tackled the most hopeless tasks with laughter and with song.

TRYING OUT OUR BULB SEXTANTS

 FAST IN THE ICE
At 1 p.m. we went on board for soup. The ice was then calm. The
“Sphinx” lay in the same position. Oh! how good the thick pemmican
soup tasted! Five hours’ hard work on a cup of chocolate and three
small oatcakes gives one a good appetite. At 4 p.m. Dietrichson went
on board to fetch something, and on his return remarked that it
seemed to him that the old ice was approaching the seaplane. Now,
he, during the last days, had suffered a little from snow blindness and
we thought accordingly he had made a mistake. It was indeed a
mistake. We should have gone at once and looked into the matter.
One must however remember that every second is precious and that
we grudged stopping work. At 7 p.m. we went on board to eat our three
biscuits. The sight which then met us would have filled the bravest
heart with despair. The great pack had approached the seaplane to
within some meters. The “Sphinx” seemed to bow and chuckle with
amusement. Now it would have us! But it had laughed too soon. The
six men that it now looked upon were not the same six who some days
ago had arrived through the air from a place full of life’s comforts; the
six now were hardened by obstacles, weariness and hunger, and they
feared nothing on earth, not even the “Sphinx.” “Hurrah! heroes.
Hurrah for home and all we hold dear. The devil take the ‘Sphinx.’” And
so the work began and in its performance we got more self-confident
than ever before, as we managed to turn the heavy machine round in
the course of a few minutes. What task each person specially
performed it is difficult to say, but it was a Herculean task. We lay
down, we pulled, we toiled, we scratched. “You shall go round!” Before
we realized it there it was, turned 180° and the course set for the new
slide. The “Sphinx” hung its head and looked sad; but the next day it
lay exactly on the spot where N 25 had lain. During this performance
N 24 was pushed on to the plain beside which it had lain. Still a little
more leveling and the slide was ready. To shouts of joy the machine, in
the evening at eleven o’clock, was driven over the track and stopped
exactly beside the Thermopylæ Pass. To-morrow there would not be
much to be done.
The 7th of June. Norway’s Day! At home they would be wearing
light summer clothes and enjoying life, while flags flew over the whole
land from the North Cape to Neset. But don’t think that we forgot this
day. No! From the N 25’s highest point our silk flag flew and our
thoughts—oh! don’t let us think at all of them!
The side of the pass was formed by two gigantic icebergs which
would have to be more than half cut down before the wings could pass
over and the great ditch had to be filled up with ton after ton of snow.
But the 7th of June is a good day to work for homesick folk. The knives
are driven with greater certainty, the axes swung with greater power,
and in a remarkably short time the ice giants dwindled to dwarfs. We
experienced a very exciting episode on this occasion. While Riiser-
Larsen drove the machine over the snow glacier Dietrichson went past
and did not get out of the way. At the last moment he threw himself
down flat on the ground and the tail-skid passed so near to him that I
could not see daylight between. It was in the words’ fullest meaning a
narrow escape. “I saw you all right,” remarked the pilot later. “But I
could not stop in the middle of the bridge.” That his words were true
was proved by looking back and noting that the bridge was no longer
there. It was a delightful feeling to sit on a “flynder” and rush across the
snow plains. It was not often we got the satisfaction, as we usually had
to stand by ready to push or haul the machine over the snow. But this
intermediate plain was hard and the pilot could manage to steer with
the wheel. And thus we stood before the last ditch which had to be
filled and leveled. It took us six hours before it was finished and the
machine landed in safety on the big plain. It had been thawing the
whole day and was uncomfortably warm for working, but one could
always throw some clothes off. We were not so particular about our
appearance.
The 8th of June brought us fog and half a degree of heat. It
drizzled the whole time and we were exceptionally uncomfortable. We
were now faced by another hard task, namely, turning the machine
round in the deep wet snow. We were unused to this work and
consequently were fairly clumsy. In addition to this we had to decrease
our daily rations from 300 to 250 grammes, insufficient to keep up our
strength. Our work in the deep wet snow of this plain was wearying.
More wearying than ever before. Do you remember, comrades, how
we made the turning platform? You will scarcely have forgotten that?
The machine had to be driven up to the starting place and then swung
round 180° to face the right direction. The snow as already said was
deep and wet, and any turning of the machine under these conditions
was hardly possible. What should we do now? There was only one
thing to be done, namely, to dig down to the ice and turn the machine
on that. The snow here was from two to three feet deep and every
spadeful was a heavy weight to lift, particularly as we used the big
shovels. We cleared a circular place with a diameter of fifteen meters.
That got the name “turning-table.” Had we solved our problem by this
you might have forgotten the turning-table by now, but when we tried to
turn the machine, we found that the skids caught in the ice and
stopped the whole progress. Again we were faced with the question
—“What shall we do?” And some one was struck by a bright idea—to
lay a snow-skate underneath. We all agreed the idea was good, but to
accomplish it was not easy. We must lift the machine and it weighed
four and one-half tons. But even that did not frighten us. It was not to a
great height that we had to lift it—just about two centimeters, but only
five men were available while the sixth must place the snow-skate
underneath. Never mind, come on, my heroes. Lay your shoulders to
the wheel and lift. And then five backs are bent in unison, and one!
two! three!—we had got it up on the snow-skate at last. We continued
working steadily, regardless of time’s flight, from 4 a.m. on the 8th of
June to 4 a.m. the next day. During that time starting place No. 5 was
worked on, tried, and approved. The fog lay thick and heavy while the
drizzle continued all day on the 9th, but Riiser-Larsen insisted that the
track should be completed. Think now what a problem we had before
us when we started to work that morning. A track—500 meters long—
twelve meters broad—should be made in wet snow three feet in depth.
The snow cleared away from the track must be thrown at least six
yards away from each side so that it should not get in the way of the
machine. We had lived on 250 grammes daily for several days so you
will not be astonished when I say that by evening we were absolutely
worn out. I watched, with wonder, the two giants who wielded the
shovels all day. We others did what we could, but our work was trifling
compared to theirs. On the 11th we set to again after breakfast, but we
could not keep up this strenuous work; an observer would have
noticed at once that he had a number of worn-out people before him.
The clang of the spades got slower, the rest-intervals longer and
longer till in the end we stood quite still and stared at each other. It
seemed an impossibility to get the snow shoveled aside in a
reasonable time. Whilst we stood discussing it, Omdal walked up and
down in the snow. It was only a chance that he did so, but a chance
which brought about important results. “See,” he shouted suddenly,
“this is what we can do instead of shoveling.” The place where he had
trekked was quite hard and with a little frost would give a splendid
surface. In the afternoon we started our great trek. Foot by foot of the
track of soft wet snow was trodden into a solid road. It was still
thawing, but we knew that if it turned frosty it would become a perfect
track—and it was only natural to expect that frost would come. To
make the surface even we had to remove long and high stretches of
ice-formation containing tons upon tons of ice. On the 14th of June as
we laid down our tools I don’t think I exaggerate when I say that all in
all we had removed 500 tons of ice and snow. That day we made two
starts, 6 and 7, but the foundation was still too soft as we had had no
constant frost. Certainly the temperature that day had been as low as
-12° c., but then it rose immediately after to 0° again. It was impossible
to get up sufficient speed to rise, the machine sank down into the
snow, and in a number of places dragged the whole of the underlying
snow with it. Now will it freeze or not?
The 15th of June was fixed as the latest day for our next attempt to
start. If that was not successful we must collaborate and decide what
could be done. There were not many courses to choose. Either we
must desert the machine and attempt to reach the nearest land, or we
must stay where we were and hope for an opportunity to rise in the air.
We had performed the miracle of leaving Spitzbergen with one month’s
provisions, and yet after four weeks had passed we found we had
provisions for six weeks. We could thus hold out until the 1st of
August. In my lifetime I have often been faced by situations where I
found it difficult to decide on the right course of action, but to choose in
this case with any degree of certainty was more difficult than the
making of any previous decision. The first alternative—to set off in
search of land—appeared to me to be the most sensible as, should our
provisions run out, it was possible further south that we might find
edible animal life. In addition this plan had the great advantage that it
would occupy our thoughts with the work we had ahead. Against this
plan the fact of our modest equipment and our probably weakened
condition must be weighed. When I privately considered these two
alternatives I always came to the conclusion that to look for land was
the most sensible, but as soon as I decided on this course a voice
whispered in my ear: “Are you mad, Boy? Will you leave a complete
and good machine, filled with petrol, and go down into the high broken
ice where you know you may perish miserably? A waterway may open
up before you to-morrow and then you will be home in eight hours’
time.” Will any one blame me for my indecision when I found it so
difficult to choose.
On the evening of the 14th we unloaded everything on the ice
except the most necessary, and that we placed in a canvas boat. We
kept sufficient petrol and oil for eight hours, one canvas boat, two
shotguns, six sleeping bags, one tent, cooking utensils and provisions
for a few weeks. Even our splendid ski-shoes had to be set aside as
they were too heavy. Of our clothes we only kept what we could not do
without. All told it amounted to about 300 kg.
On the 15th of June we had a temperature of -3° c. with a little
breeze from the southeast, just the very wind we required. The track
was frozen fine and hard during the night, but the sky was not too
promising—low-lying clouds—but what in all the world did we care
about the sky! The thickest fog would not have kept us back. In this
light the track was very difficult to see; small black objects were
therefore placed at each side so that the pilot would be certain to make
no mistake. A little too much to one side or the other could be fatal. At
9:30 p.m. everything was clear and ready for a start. The solar-
compasses and the engines started. They were three-quarters warmed
up. I cast a last glance over the track and walked along it to pass the
time. It ran from northeast towards southeast. A few yards in front of
the machine there was a small crack across the ice. It was only a few
inches wide, but there it was, and at any moment it might open and
separate the little corner we stood upon from all the rest. For the
distance of 100 meters the track rose quite gradually in order to
become level. Two hundred meters away, on the floe’s southeast end,
there also lay a crack right across, but this was of a much more
serious nature, and had caused us many uneasy moments. It was
about two feet wide and filled with water and mush. This seemed to
show that it was connected with the sea and could give us a few
unpleasant surprises sooner or later. Should this crack widen and tear
away 200 meters of our track, the latter would be entirely ruined. The
floe ended in a three-foot broad water-lane; on the other side of it,
direct in the line of the track, lay a flat forty-meter long plain, which one
will understand was far from ideal, but absolutely the best which the
place could offer us. At 10:30 everything was in order. In the pilot’s
seat sat Riiser-Larsen, behind him Dietrichson and I, in the petrol tank
Omdal and Feucht, and Ellsworth in the mess. Dietrichson was to
navigate us homewards and should really have taken his place in the
observer’s seat in front of the pilot. But as that was too exposed in
view of the nature of the task we were undertaking, his place was
allotted further back at the start. This was undeniably a most anxious
moment. As soon as the machine began to glide one could notice a
great difference from the day before. The hasty forward glide was not
to be mistaken. One hundred meters off, we started at top-speed,
2,000 revolutions a minute. It trembled and shook, shivered and piped.
It was as though N 25 understood the situation. It was as though the
whole of its energy had been gathered for one last and decisive spring
from the floe’s southern edge. Now—or never.
We rushed over the three-meter wide crack, dashed down from the
forty-meter broad floe and then? Was it possible? Yes, indeed! The
scraping noise stopped, only the humming of the motor could be
heard. At last we were in flight. A smile and a nod and Dietrichson
disappeared into the observation compartment.
 And now started the flight which will take its place amongst the
most supreme in flying’s history. An 850-kilometer flight with death as
the nearest neighbor. One must remember that we had thrown
practically everything away from us. Even though we had managed by
a miracle to get away with our lives, after a forced landing, still our
days were numbered.
The sky was low and for two hours we were compelled to fly at a
height of fifty meters. It was interesting to observe the ice conditions,
so we eased down. We believed that in different places we observed
from the sky we could distinguish open water all around us. But it was
not the case. Not a drop was to be seen anywhere, nothing but ice in a
chaotic jumble all around. It was interesting also to see that the floe,
which from first to last had given us freedom, was the only floe within a
radius of many miles which could have been of any use to us. N 24 got
a farewell wave and was lost to sight for ever. Everything worked
excellently, the engines went like sewing machines and gave us
unqualified confidence. Both solar-compasses ticked and worked, and
we knew that if only the sun would appear, they would be of invaluable
assistance to us. The speedometers were placed. By the wheel sat the
pilot, cool and confident as always. In the navigating compartment was
a man I trusted absolutely, and by the engines two men who knew their
work perfectly. Ellsworth spent his time making geographical
observations and photographs. I myself managed to get what was
impossible on the journey north, a splendid opportunity to study the
whole flight. The course was set towards Spitzbergen’s north
coastland, around Nord Kap. In the two first hours we steered by the
magnetic compass. This had been considered an impossibility,
hitherto, so far north, but the result was excellent. When the sun broke
through after two hours and shone direct on the solar-compass, it
showed us how exactly we had steered. For three hours the
atmosphere had been clear, but now it turned to thick fog. We rose to a
height of 200 meters, flying over it in brilliant sunshine. Here we
derived much benefit from the solar-compasses and were able to
compare their readings with the magnetic-compass. We had fog for an
hour and then it cleared again. The condition of the ice was as on the
northern trip, small floes, with icebergs on all sides. There was
apparently no system in its formation; everything was a jumble. There
was more open water than on the northern tour, but no waterways,
only basins.
In 82° N. Lat. the fog descended again. The pilot tried for some
time to fly under it, and this was a flight which would have delighted
people who seek nerve-splitting thrills. The fog came lower and lower
till at last it stretched right over the icebergs. With a speed of about
120 miles at a low altitude one gets a new impression of flying. With a
rush we passed over the top of the icebergs one after the other. At a
great height one does not notice the terrific speed. One is, on the
contrary, astonished how slowly one appears to be traveling. Several
times icebergs peeped up directly under us, so close in fact that I
thought, “We shall never clear that one!” But the next moment we were
across it. There could not have been more than a hair’s breadth to
spare. At last the conditions became impossible; fog and ice blended
into one. We could see nothing. There was another matter as well
which was of special weight, namely, the nearness of Spitzbergen.
Should we fly into the high cliff walls with a speed of 120 kilometers
there would not be much left of us. There was only one thing to do—to
fly over the fog and that was exactly what the pilot decided to do.
Up 100 meters high—and we were above the fog in brilliant
sunshine. It was observable soon that the fog was thinning, it began to
lift more and more in big masses, and soon we could see territory
under it. It was not inviting; nothing but small ice with a little water.
When I speak of the impossible landing conditions it is only to show
that to land here would have meant certain death. Such a landing
would have crushed the machine and sent it to the bottom. The fog
lifted steadily and soon disappeared entirely. It was a fresh southerly
breeze which brought about this welcome change. The fog had lain
thickest in the south, but now that began to move away as well. Large
sections of it tore themselves away from the great mass and
disappeared in small driving clouds. Where was Spitzbergen? Had we
steered so mistakenly that we had flown to the side of it? It was quite
possible. One had no experience in the navigation of the air in these
regions. Over and over again the general opinion of the magnetic
compass’s uselessness in this district came back to my mind as I sat
there. The solar-compass had—as soon as we got the sun—shown a
reading in agreement with the magnetic compass, but it was set at
——? At what? If only I knew! There was probably no ground for
anxiety, yet I felt dubious. We ought to see land by now. We had not
enough petrol to last long—and still no land. Then suddenly a big
heavy fog-cloud tore itself away and rose slowly, disclosing a high
glittering hill-top. There was scarcely any doubt. It must be
Spitzbergen. To the north lay some islands. They coincided with
Syvöene and the land stretched out in a westerly direction. But even if
it were not Spitzbergen, it was still land—good, solid land. From the
islands there stretched a dark strip northwards. It was water—the great
open sea. Oh! what a delightful feeling—sea and land and no more
ice. Our course lay southwards, but to get more quickly away from the
ugly conditions beneath us, the course was set westwards and
downwards to the open sea. It was more than a clever move on the
part of the pilot—it was refreshing to see how instinct came to his aid—
because the controls were showing signs of wear. It is enough to say
before we had got right across the sea the controls jammed and an
immediate landing was necessary. The wind blew with a cold blast
from what we learned later was Hinlopen Strait and the sea was high
and rough. The forced landing was accomplished with all the
assurance and experience which always distinguished our pilot. We
left our places and all went aft in order to allow the nose to lift as high
as possible. The pilot was the only one left forward. He flew most
carefully, guiding the boat and maneuvering it against the highest
waves, which were of tremendous dimensions. We who were aft kept
warm and dry, but it was a different matter for the man at the wheel.
Time after time the waves lashed over him, wetting him to the skin in a
few minutes. It was not “spray” which we shipped when the waves
broke over us. Unused as I was to maneuvers of this kind I expected
every moment to see the bottom stove in. It was seven in the evening
when the forced landing was accomplished, and it was not until eight
that we reached land. It was a fairly shoal bay we entered and the
landing places it offered us were not of the best. We found a sloping
side of the coast ice where we could climb ashore. The wind now died
away and the sun shone on the heavy stones which lay on the beach.
Here and there a little fresh rill ran between them singing as it
descended from the hillsides. The sweet voices of birds fitted in with
our gentle mood of eventide and inspired in us a feeling of solemnity.
There was no need to look for a church wherein to praise God the
Almighty and offer up to Him our burning thanks. Here was a spot
amidst His own wonderful nature. The sea lay smooth and calm with
here and there tremendous pieces of ice protruding from the water.
The whole scene made an ineradicable impression on us which we
shall never forget. The plane was moored to a large piece of ice so
that it swung free, and all of us went ashore. There were two things
which it was necessary for us to do in our own interests. First to
discover our whereabouts and then to have a little food. The chocolate
and the three biscuits we had taken at 8 a.m. no longer satisfied us.
While Dietrichson “took the sun” the rest of us got the meal ready—a
repetition of breakfast. How good it tasted! How fine it was to jump
about among the big rocks! We became children again. All around lay
driftwood which we could use for firing if we remained here any time.
The ninety liters of petrol which we had must be used sparingly.
Omdal, who had been our cook during the whole trip, wished to set
the Primus going, as there was still a little drop of petrol left in it, and
he was busy with it when suddenly Riiser-Larsen shouted, “There is a
ship.” And truly there in the east round the nearest point came a little
cutter, gliding along. Had misfortune earlier been our lot luck seemed
now to overwhelm us. It was now 9 p.m. and Dietrichson had just
completed his observations. We found that we were exactly at Nord
Kap on Nordostland, the very spot we had steered for in the morning.
Thus the flight was a master-stroke on the part of the man who
directed the machine, while the navigator shares the distinction with
him. It was a splendid deed! But—the little cutter had changed her
course and apparently had not noticed us. She moved quickly and was
probably fitted with a motor engine. What should we do? What should
we do to communicate with it? “Nothing easier,” said the flying-men.
“Just sit tight and you shall see.” In a second everything was brought
on board the plane, the motor started and we rushed over the sea
stopping exactly beside the cutter. It was the cutter “Sjöliv” of Balsfjord
—Captain Nils Wollan. A jolly-boat was lowered and with two men
rowed across to us. They seemed in doubt as to who we could be,
dirty and bearded as we were. But when I turned slightly round I
exposed my profile—and they knew us at once. Would they tow us
down to King’s Bay as our petrol was almost done? They would be
delighted to do this, in fact Wollan would have certainly towed us to
China if we had asked him, so glad was he to see us, so beaming with
kindness and goodwill. We had a rope attached to N 25 and we all
went on board the “Sjöliv.” There for the first time we felt that the
expedition was finished. Quietly and calmly we shook hands with each
other—it was a handshake that said much. We were received by all
the crew with hearty welcome and shown down to the cabins. While
this part of the ship was not exactly a ballroom, the cabins on “Sjöliv”—
2 × 2 meters—compared with what we had had in the last four weeks,
were roomy and comfortable. These good people cleared out of them
absolutely and handed over the whole place to us. In the two broad
bunks four of us were able to sleep, while two found berths in the
men’s quarters. “Will you have coffee?” was the first question. Would
we! Yes, certainly, and as quickly as possible with a smoke thrown in.
We had been tobaccoless for the last days and now were longing for a
smoke. The first coffee was not an unqualified success; the coffee pot
was set on the fire to warm and, on a mighty roll the cutter gave, it flew
straight onto Riiser-Larsen’s back. He was thus the first to get coffee,
but if he appreciated the honor, his language expressed a totally
different opinion. They apologized to us for the egg pancake and the
seal-flesh which comprised the next course, but apologies were
unnecessary. All the food disappeared as though a whirlwind had
passed over the table—and this, despite the fact that we had decided
to eat sparingly after our long restriction.
The towing of N 25 proceeded satisfactorily in the beginning, but
during the night a southerly breeze came up blowing directly down
from the hills. The waves increased steadily and as we steered
westwards towards Hinlopen Strait we decided that we must turn
landwards and anchor. We only got to bed at 5:30 a.m., after traversing
an endless number of roods.
At eleven o’clock the next morning we were up again. It was
blowing a gale and we lay badly. We decided therefore that we should
go into the nearest bay to find a calm and safe harborage for N 25, let
it remain there while we went on to King’s Bay for assistance, return
for the seaplane and fly it down. The nearest harbor was Brandy Bay.
We looked at each other as much as to say, “Can we really permit
ourselves to enter a place with such a name?” The ice here lay at the
bottom of the Bay and we towed the machine safely through it. At 8
p.m. we steered for King’s Bay. It was a windy passage through
Hinlopen Strait. The sea was high and rough and the “Sjöliv” enjoyed
herself royally. If our feelings agreed with hers, I should not like to say.
On the 17th we sailed along Spitzbergen’s north coast in summer
sunshine and warmth. We passed a few vessels and asked if they had
seen “Hobby”—but “No, they had not.”
As we passed Virgo-havn we hoisted all our flags and the little
“Sjöliv” was in gala attire. We wanted to honor the memory of the man
who, for the first time, sought to reach the Pole through the air—
Salomon August Andrëe. Was there any one in the world who had
more right to honor the memory of this man than we six who stood
here looking over the place from which he set out on his sad
expedition. I scarcely think so. We lowered our flag and continued.
At 11 p.m. we rounded Cape Mitra and there lay King’s Bay before
us. It was a wonderful sensation to sail back through the Bay and see
all the old well-known places again. The ice had vanished, melted by
the sunshine as loon and auk gamboled in its rays. Anxiety was rife
among us as we sailed in as to whether “Hobby” was here or not? The
skipper looked out, came back and announced that “Hobby” was not
here; only a coal-boat lay by the quay. As we approached one or other
of us went continually to look out; suddenly some one cried, “Yes,
there is ‘Hobby.’ And another boat lies there also, but I can’t distinguish
which it is.” Our relief was great. There lay “Hobby” and many of our
dear friends were near. “Hullo,” some one cried from above, “the other
boat is the Heimdal.’” “No, you must be mad. What would the ‘Heimdal’
be doing here?” answered another. We had not the slightest idea what
awaited us. Nearer and nearer we approached. “Shall we raise the
flag?” said the skipper. “No,” I answered, “there is no reason to do so.”
But a little later some one said, “Surely we must greet the naval flag.”
“Yes, naturally. I have forgotten my good manners on the trip,” I had to
admit. So up went the flag and the “Sjöliv” approached the quay. We
continually had our glasses directed on the ships ahead; suddenly
some one exclaimed, “Good gracious, two flying machines are lying
there.” And, true enough, there lay two Hansa-Brandenburgers ready
for flight. Surely they were destined for a North Coast charting survey,
as that had been discussed last year. Yes, that seemed quite possible!
That we were the reason for all this excitement never entered our
minds. We came on nearer and nearer. We could now see that they
were beginning to direct glasses on us from the Coast, showing
interest in the little cutter. As we sailed in one of our people who saw a
comrade on board the “Hobby” shouted, “Hullo, Finn, how is everything
at home?” That was the signal for great excitement. We saw them run
round each other in jubilation, shouting and gesticulating. What in the
world was the reason for all this? Soon we were to know. The motor
stopped and the “Sjöliv” sailed up alongside “Hobby.”

MEMBERS OF THE EXPEDITION ARRIVING AT KING’S BAY

The reception we received will never be forgotten, not even when
other things fill our thoughts. Our friends wept, they took hold of us,
they looked at us with unbelieving glance—“But, Great God, is it you?”
They simply did not realize that we had returned. But they explained
how they had waited and waited, insisting that they had never given us
up, while in their hearts they knew they had. And suddenly there we
stood among them—the dead returned to life. No wonder that the
reaction was great. Not one sensible word was said during the first half
hour. There stood all our dear old friends: Captain Hagerup, Lieutenant
Horgen, Zapffe, Ramm, Berge, etc. They looked so happy. And there
were the dear fellows who had been sent to our relief: Captain Blom of
the “Heimdal” and First Lieutenant F. Lutzow-Holm with the air fleet.

ROALD AMUNDSEN AND LINCOLN ELLSWORTH AT THE

RECEPTION BY THE KING OF NORWAY
The last to come down, not because he wished to be late, but
because it took him a long time to traverse the road from the Director’s
house, was our dear host, Stakkars Knutsen. He had run so fast that
he had to stand for a time to regain his breath. It was a warm reunion.
Among all who had missed us in that time there was scarcely anybody
whom our absence had made more uneasy. Late and early, we were
told, he had scanned the horizon looking for us. Never had we been
out of his thoughts. Big, strong man as he was, he had the warmest
and softest of hearts. No wonder then that the meeting with Knutsen
was regarded as an outstandingly important incident.
We had to be photographed from all sides, although a record
would appear on the plate of a month’s whiskers and dirt. In an hour
both would have vanished. And so we set off to our old King’s Bay
quarters where we had passed unforgettable days before our
departure. It was like a delightful dream to see it again. Every day as
we had sat in our little mess on N 25 taking our humble meal, it was
remarked on every side, “Oh! if only we were back at Knutsen’s.” And
now we were there. We felt we wanted to pinch ourselves and ask, “Is
this really possible? Can you really eat as many biscuits as you wish?”
There was no time to shave and wash first. No! Berta had now taken
command, and we should first and foremost have food. As we stepped
into the room, cheering broke out. The Station welcomed us back, and
never has our National Anthem sounded finer than it did as we stood in
the little square room listening to the tones of what is our dearest
hymn. I believe there was not one dry eye in the company. “Gud sygne
dig landet vaart. Vi gir dig med glede alt.”
On the next day about three or four o’clock the steam bath was
ready and a change was effected; hair and whiskers disappeared. We
were all very thin, but we noticed it now more distinctly. It looked as
though Riiser-Larsen could have put his collar twice round his neck—
the same size collar which had even been tight for him when he set out
for the north.
What time we went to bed that night I really cannot say, but I do
know that when I came out next morning and looked around, one of
the finest sights met me, making an ineradicable impression. On the
flagstaff, right before the house, waved our big, beautiful National flag
in a light summer breeze. The sun was blazing down and the glaciers
around shone like silver in its rays. All seemed to be in festal dress.
The hills blushed with the finest little flowers, and the birds twittered
and sang. In the harbor lay the boats fully be-flagged. Yes! it was