ProBisnis : Jurnal Manajemen ISSN 2086-7654 ❒

Analysis of the Business Purchasing Decision Process in

MSMEs
Nur Halimah Sidik1, Kekey Mahesa Deva2, Moses Aprildo Jerico Sitinjak3
1,2,3
ARTICLE INFO
Article history:
Received Jun 9, 2018
Revised Nov 20, 2018
Accepted Jan 11, 2019
Keywords:
MSMEs, purchasing process,
internal factors, external factors,
marketing strategy.
Singaperbangsa University Karawang
ABSTRACT
This research aims to analyze the business purchasing decision
process in Micro, Small and Medium Enterprises (MSMEs). The
main focus of the research is identifying factors that influence
purchasing decisions and understanding the stages that MSMEs go
through in the purchasing process. The research method used is a
qualitative approach with in-depth interview techniques with a
number of MSME owners and managers in various industrial
sectors. In addition, the stages of the purchasing process include
identifying needs, searching for information, evaluating alternatives,
purchasing decisions, and post-purchase evaluation. These findings
provide insight for MSME stakeholders to understand the dynamics
of purchasing decisions, which can be used to develop more
effective marketing strategies and support their business growth

Corresponding Author:
Name of Corresponding Author,
Department of Electrical and Computer Engineering,
National Chung Cheng University,
168 University Road, Minhsiung Township, Chiayi County 62102, Taiwan, ROC.
Email: lsntl@ccu.edu.tw
1. INTRODUCTION (10 PT)

A business process is a collection of processes that includes a series of activities or tasks that
are interrelated to produce outputs that support an organization's strategic goals and objectives. In an
increasingly complex and dynamic business environment, good business processes must be
designed to be effective, efficient and adaptive to change. Effectiveness means that the process is
able to achieve the desired goals with optimal results, while efficiency refers to using the minimum
possible resources to achieve those results. Adaptability shows the ability of business processes to
adapt to changing business needs and market dynamics. Thus, business processes must emphasize
the quantity and quality of product output, minimize resource use, and be able to adapt to changes
that occur in the external and internal environment.

Ideally, business processes in an organization cover various areas such as human resources,
production, marketing, finance, and information technology. These areas must be well structured and
mutually influence each other, because policy changes in one sector can affect other sectors. For
example, changes in human resources policies can impact production and marketing, which ultimately
affects finance and information technology. Therefore, managing business processes becomes very
important to ensure that all parts of the organization work synergistically and efficiently to achieve the
stated goals.

Business process management is a concept that describes how individuals or stakeholders in

a system interact with each other to meet business needs efficiently and effectively. Business
processes are not static; they inevitably experience changes along with increases in resources,
products produced, broader marketing systems, or additional capital. In this context, business process
management plays a key role in planning and executing business strategies, ensuring that
organizations can adapt to change and remain competitive in the market.

Today, business process design and management is not only the domain of large companies.
Even small and medium-sized businesses are starting to apply business process analysis to improve
their efficiency and competitiveness. Micro, Small and Medium Enterprises (MSMEs) have a strategic
role in national economic development, because they not only contribute to economic growth and
employment, but also to equal distribution of development results. When the economic crisis hit
several years ago, many large companies experienced stagnation or stopped operations, but the
MSME sector showed greater resilience and was able to survive better in the face of the crisis. This
shows the important role of MSMEs in maintaining economic stability and making a significant
contribution to post-crisis economic recovery

Thus, effective and efficient business processes, as well as good management, are the keys
to achieving organizational success and sustainability amidst the challenges and changes that
continuously occur in the business world. This research aims to explore and analyze how business
processes can be optimized to support an organization's strategic goals, with a special focus on the
role of MSMEs in the national economy. Through comprehensive analysis, it is hoped that the results
of this research can make a significant contribution in understanding the dynamics and implications of
good business process management, as well as providing practical recommendations for business
actors at various scales.

RESEARCH METHOD (10 PT)

This research uses factor analysis, explaining the relationship between variables to obtain new latent
variables or latent factors, data collection is carried out using a questionnaire method and MSME
actors are the respondents.

CONCLUSION (10 PT)

1.1. KMO and Bartlett's Test

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. ,786
Bartlett's Test of Approx. Chi-Square 208,906
Sphericity df 45
Sig. ,000
Used to see whether the variables and data used meet the requirements for factor
analysis or not.
The conditions are that the KMO value must be 0.50 or greater than 0.50 and the
significant value must be far below 0.50. From the table above it can be concluded
that factor analysis can be continued because it meets the requirements for continuing
factor analysis.

1.2. Anti-image Matrices

This table explains and identifies whether each indicator meets the requirements or whether
Total Variance Explained
Extraction Sums of Squared Rotation Sums of Squared
Initial Eigenvalues Loadings Loadings
Compon % of Cumulati % of Cumulati % of Cumulati
ents Total Variance ve % Total Variance ve % Total Variance ve %
1 5,425 54,249 54,249 5,425 54,249 54,249 4,832 48,318 48,318
2 1,268 12,682 66,932 1,268 12,682 66,932 1,712 17,119 65,437
3 1,123 11,231 78,163 1,123 11,231 78,163 1,273 12,726 78,163
4 ,686 6,857 85,020
5 ,488 4,882 89,902
Anti-image desire .685 -.028 ,12 -,178 ,217 -,416 -,251 ,031 ,234 -,218
6 ,395 3,948 93,850
Correlation a 7
7 ,313 3,130 96,979
need -.02 ,844 ,04 -,451 ,058 -,016 ,161 ,027 -,146 ,218
8 ,150 1,503 98,483
8 a 4
9 ,110 1,095 99,578
opinion ,127 ,044 ,80 -,374 -,091 -,069 ,202 -,457 -,255 ,433
10 ,042 ,422 100,000
1a
Extraction Method: Principal Component Analysis.
marketingso -,17 -,451 -,37 ,877a ,143 -,013 -,165 -,227 -,102 -,189
urce 8 4
evaluation ,217 ,058 -,09 ,143 ,817a -.095 -,136 -,329 -,171 ,131
criteria 1
determining -,41 -,016 -,06 -,013 -.095 ,846a ,101 -,089 -,492 ,269
alternative 6 9
options
alternative -,25 ,161 ,20 -,165 -,136 ,101 .388a -,264 ,114 ,112
that has 1 2
been
chosen
product ,031 ,027 -,45 -,227 -,329 -,089 -,264 ,795a ,327 -,538
purchases 7
rationalize ,234 -,146 -,25 -,102 -,171 -,492 ,114 ,327 ,755a -,785
the decision 5
as the best
decision
feel satisfied -,21 ,218 ,43 -,189 ,131 ,269 ,112 -,538 -,785 ,709a
with the 8 3
product
factor analysis was carried out or not, and the requirement for this stage is that each indicator
must have a value of 0.50. The value of each indicator can be seen from the letter 'a' at the
end of the value at table. The table above states that the indicators meet the requirements for
factor analysis.
1.3. Total Variance Explained
 The table above determines the factors produced from the indicators, the factor
requirements are
the value is 1 or above 1, this table states that there are 3 factors in the analysis
this factor.
1.4. Rotated Component Matrix

Rotated Component Matrix

Components
1 2 3
desire ,625 -,394 ,530
need ,698 -,006 -,226
opinion ,655 ,540 -,090
marketingsource ,887 ,270 ,093
evaluation criteria ,219 ,861 ,072
determining alternative ,824 ,171 -,036
options
alternative that has been -,161 ,122 ,915
chosen
product purchases ,723 ,519 ,246
rationalize the decision as ,870 ,288 -,125
the best decision
feel satisfied with the product ,841 ,233 ,070
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
This table explains that each indicator is included in factors 1, 2 or 3, which can be
determined by the largest value for each indicator. The largest value among the 3 factors
indicates that the indicator is included in that factor.

4. Conclusion
The factor analysis carried out stated that there were 3 factors in the business purchasing
decision process, including the first, marketing sources. Second, evaluation criteria. And
third, the alternative that has been chosen. This is stated through the research results in table
2.4 which shows the largest indicator values for each factor

REFERENCES (10 PT)

First Author, Article Tittl