American Journal of Economics

p-ISSN: 2166-4951    e-ISSN: 2166-496X

2016;  6(5): 262-269

doi:10.5923/j.economics.20160605.03

 

The Influence of Partnerships and Self-concept for the Courage to Take Risks and Their Impact on the Achievements Sought of Small Industries in the City of Pekanbaru

E. A. Pailis1, Bambang Suroto2, Hadiyati2, Fatkhurahman2

1Faculty of Economics, University of Riau, Indonesia

2Faculty of Economics, University of Lancang Kuning, Indonesia

Copyright © 2016 Scientific & Academic Publishing. All Rights Reserved.

This work is licensed under the Creative Commons Attribution International License (CC BY).
http://creativecommons.org/licenses/by/4.0/

Abstract

The phenomenon of small businesses as the economic base in a particular country Indonesia became very clear, as in creating job opportunities and improving the product of the creative economy in accordance with government policy today. But the existence of small businesses, especially small industry that became the pride is very alarming. Products produced are still not able to be enjoyed by consumers widely and even just able to be enjoyed by the closest relatives only and is not uncommon even failed to survive the competition arena and considered less fortunate in achieving. Through testing to variable courage to take risks, followed by the partnership and also the concept of self-owned businesses are expected to increase achievement tried. The sample in this study was small industrial entrepreneurs as many as 100 people, spread across 12 districts and conducted a survey approach and analyzed using structural equation modeling (SEM). The results showed that the ability to build a business partner in terms of access plus with entrepreneurs have the self-concept in trying fosters courage in taking risks. The courage to take this risk will make employers unlucky and this part of the achievements that afford showed in the attempt. Later in the context of theoretical construct feat trying. This needs no subsequent studies related to other than the courage to take risks in building a feat attempted such aspects of mental attitude and local knowledge possessed.

Keywords: Achievement endeavor, Courage to take risks, Partnership, Self-concept

Cite this paper: E. A. Pailis, Bambang Suroto, Hadiyati, Fatkhurahman, The Influence of Partnerships and Self-concept for the Courage to Take Risks and Their Impact on the Achievements Sought of Small Industries in the City of Pekanbaru, American Journal of Economics, Vol. 6 No. 5, 2016, pp. 262-269. doi: 10.5923/j.economics.20160605.03.

1. Introduction

Indonesia ever get bitter experience with regard to the economic crisis, where this crisis began with the monetary crisis and in turn lead to a multidimensional crisis a devastating effect on the national economy. The deteriorating condition of the national economy is more severely felt in the business sector of medium and large businesses. Medium and large enterprises bankrupt and the bank went into liquidation. Whereas micro and small businesses that have employment which is quite large and is an informal activity undertaken by people who can withstand the economics crisis. The advantages of small businesses more because basically they do not rely on capital as their business base, they rely more on creativity and independent innovation in maintaining its business. Creativity and always take advantage of what they have become an advantage for small businesses to survive, because these two sources can not be monopolized and politicized by various groups who are thirsty for power and not sharing prosperity among the people of this world.
Small industry is part of a small business, small industries over the processing business, because along with the spirit of improving competitiveness and developing programs creative economy, it is expected that each individual citizen is expected to produce a product that is unique and has a sale value superior. It becomes a form of work that makes the icons on the uniqueness of each individual. An area is also experiencing the same thing, an advantage in trying to make a form of final destination and also has more value than an effort to give the best to its customers.
This study was conducted in the city of Pekanbaru, because this city is a city that is unique in layout problems and also has a high commitment in order to fight for the uniqueness of regional products. Having a location close to the neighboring countries and also the entrance to the State of Indonesia into the shape of an icon for Indonesia to introduce local products. However, when viewed from the condition of the phenomenon on the ground, still can be seen that the small industrial town of Pekanbaru is less exciting. It is characterized by decreasing the number of employment and more prominent on the use of capital resources in the development of its business and also the relative number of small businesses that are unable to survive for various reasons. Meanwhile, when seen from the experience of the achievements of small businesses that lead to their ability to survive and generate employment into a declining performance.
From the description can be clearly known that there is a tendency achievements of small businesses particularly small scale industries in the city of Pekanbaru decreased performance in order to create excellence efforts, especially in absorbing and retaining business in order to exist and develop and provide value in moving the real sector and also giving meaning to be economy people into getting attention from various circles both public and private.
From the results of previous studies regarding the performance of small businesses in relation to maintaining the benefits of its business and improve performance explained, as expressed by Endang (2011) that the achievement of a businessman trying to be influenced by personal characteristics and also by environmental factors. It is also in line with the opinion of Yusi (2012) that the internal and external factors affecting the achievement of trying, was also delivered by Hartono (2013) is more due to individual factors. Then also described in addition to individual conditions such as character, motivation, attitude, education and entrepreneurship, as well as the condition of organizational as submitted by Rante (2010) that cultural factors also influence the achievement of trying, but it is also a factor of entrepreneurship in terms of courage to take risks as presented by Junia (2011) provide additional success.
Then described by Pillay (2006) that internal environmental factors consisting of level of education and training owners, gender, ethnicity, business activity, the status of the business and capital resources, recruitment, managerial ability, and knowledge of finance and external factors which consist of economic development, tax, legal, technology, competition, government support, and the crime rate affect the growth of small businesses. In addition, Thomas Man (2007) that the direct and indirect influence of business opportunities, relationships, innovative, human resources and strategic competencies in providing long-term performance of SMEs through competitive environment and organizational capabilities.
Based on these variables to do with the achievement sought in this case can be explained that it is still not optimal achievement of small industries in Pekabaru allegedly because of poor business partnership between the government and large industry as well as individual factors in this case is the concept of self-possessed individual entrepreneurs in trying coupled with the courage to take risks factors that are part of the entrepreneurial spirit factor becomes an important part in building a feat attempted.

2. Research Methods

The method used in this research is survey method that is research that takes a sample of the population using questionnaires and interviews as a means of collecting primary (have now, 2000). Verification analysis used in this research is the analysis of structural equation modeling (SEM). The population in this study are all small industrial entrepreneurs were registered in Department of Industry and Commerce (Disperindag) the city of Pekanbaru by the number of 1,545 people scattered in five business groups namely industrial enterprises of food, clothing, chemicals and building materials, metals and electronics and handicrafts. The sample is part of the number and characteristics possessed by the population. Given the population is relatively affordable then the sample set. The sampling method is done by using the formula Slovin many as 100 people. The data analysis used a quantitative analysis with SEM (Struktuctural Equation Modeling). SEM is able to measure the construct through indicators as well as analyzing the indicator variables, latent variables, minimize the measurement error so that more accurate measurements.
Table 1. Latent Variables and Indicator/Dimensions
     
Measurement of each indicator using a Likert scale ranges of 1 - 5. The picture can be seen below:
Figure 1. Illustration SEM Model
Figure 2. SEM Model Analysis
Information:
Z = achievement sought
Y = the courage to take risks
X1 = partnership
X2 = self-concept
The research was conducted in the city of Pekanbaru consisting of 12 subdistricts, namely districts Tampan, Sukajadi, Rumbai, Rumbai Coastal, Marpoyan Damai, Bukit Raya, Sail, Payung Sekaki, Pekanbaru City, Senapelan, Tenayan Raya and Lima Puluh. The location of this research can be seen from the following map:
Figure 3. Map Location Research

3. Research Result

1. Data Analysis
The results of the study of the influence of partnership and self-concept for the courage to take risks and their impact on achievement seeks small industries in Pekanbaru city by using the theory of Rante (2010) that cultural factors also influence the achievement of trying, but it is also a factor of entrepreneurship in terms of courage to take risks as delivered by Junia (2011) provide additional success. Then delivered by Pillay (2006) that internal environmental factors consisting of level of education and training owners, gender, ethnicity, business activity, the status of the business and capital resources, recruitment, managerial ability, and knowledge of finance and external factors which consist of economic development, tax, legal, technology, competition, government support, and the crime rate affect the growth of small businesses. In addition, Thomas Man (2007) that the direct and indirect influence of business opportunities, relationships, innovative, human resources and strategic competencies in providing long-term performance of SMEs through competitive environment and organizational capabilities. In this study will prove the influence between variables as the subject.
Based on the results of survey research data were processed using a model SEM with AMOS software version 21 with the research results can be seen in the following figure:
Figure 4. Model fit the influence of partnership and self-concept for the courage to take risks and their impact on the achievements of small industries in the city trying to Pekanbaru. (Source: Data processing of survey 2015 AMOS)
Then the model fit can also be seen resulting from the processing of amos in order to test the feasibility of the model as follows:
Table 2. Goodness of Fit Index Test
     
Then it can be seen the value of the effect of each variable that affects the courage to take the risk and performance variables sought as follows:
Table 3. Influence among variables
     
Based on the above table, it can be seen that the business partnership a significant effect on the courage to take risks with significant value of 0.022 is smaller than the standard alpha of 0.05 and the degree of influence of 0.226. Then the effect of self-concept for the courage to take risks are the significant value of 0.002 is smaller than the standard alpha of 0.05, it can be said that self-concept significantly influence the courage to take risks and the size of the effect of 0.239. This value is compared between a business partnership with the self-concept affects the courage to take a greater risk of self-concept.
It also can be seen the influence courage to take risks trying to achievement, described the magnitude of the significance of the existing calculation amounted to 0.011 <0.05, which means that the courage to take risks significant effect on achievement tried on small industrial entrepreneurs in the city of Pekanbaru to the magnitude of the effect of 0.554, This means that the courage to take risks considerable influence on achievement tried.
2. Discussion on the influence of partnership and self-concept for the courage to take risks and their impact on the achievements sought of small industries in the city of pekanbaru
a. The influence of the partnership for the courage to take risks
According Kartasasmita (2006) is a partnership relationship between businesses that are based on mutually beneficial business ties in a synergistic relationship, that the result is not a zero-sum game, but a positive-sum game or win-win situation. The business partnership is the cooperation relations between the parallel effort, based on the principle of mutual support, and mutual support based on the principle of kinship and togetherness. Then Tell (2000) describes a network of cooperation not only from the structure, but more important is as a process and as a business development strategy. Koza and Lewin (2000) showed that the chances of success of the cooperation network will increase if the parties have a common partnership beginning in the exploration or exploitation purposes of their strategy, which is continuously adjusted and maintained.
The survey results revealed that the partnership has a significant impact on an entrepreneur the courage to take risks, the courage to take risks is one part of the entrepreneurial spirit. Zimmerer in Winardi (2005) describes a entrepreuneur is one that creates a new business with risk and uncertainty that aims to achieve profit and growth by identifying opportunities through a combination of resources necessary to get the benefits. Means the better the business partnership will add courage successfully built an entrepreneur in business. Of the five indicators/dimensions of the partnership is known to influence the magnitude of the partnership in building businesses access to the courage to take risks, followed by ease of licensing from the government, business promotion, partnership and the last is ability in partnership. While the lowest is in the use of banking facilities. This means that access is attempted to be very decisive courage of a small industrial entrepreneurs in taking their business risks. While the lowest is the utilization of the business world in the use of banking facilities. This is mainly due to the small industry is still considered not able to generate profits to pay interest on banks, so the banks are still low confidence to lend.
b. The influence of self-concept for the courage to take risks
According Kreitner (2003) explains that the concept of self as a concept which is owned by the individual to himself as a creature of physical, social and spiritual or moral. In other words, because the self has no concept of self, then the self recognizes itself as a different man. A self-concept would not be possible without the capacity to think. Then, also in accordance with the opinion of Yuki (1998) that the concept of self in building one of its components is social, namely "Apearson's self-concept is composed of a hierarchy of social identities and values. The same opinion was also expressed by Burns (1984) says that "ascribe to the self concept a key role as a factor in the integration of the personality, in behavior and in motivating Achieving mental health. From the opinions of the picture of self-concept a key role as a factor in the integration of the personality, in behavior and motivation in accepting the mentally healthy. The concept of self in each individual takes it as a basic human need to get a positive appreciation of someone or of a group of people. The self-concept is formed as a person interacts with the social environment and in turn can affect their behavior. Where the self-concept is a mixed picture of what we think, how people feel about ourselves and what we wanted in connection with ourselves now and in the future.
The survey results revealed that the concept of self-possessed individual entrepreneurs of small industry in trying to have a significant influence on the courage of a small industrial entrepreneurs taking the risk of doing business. Also note that of the six indicators/dimensions used to measure self-concept can be known indicator is highest on the condition of entrepreneurs who have the potential in the business, means an entrepreneur who has the potential good will dare to take the risk of business, it is because they rely more on the ability in itself when compared to others. This was followed by a desire to extend dignity, have a competitive advantage, comparative advantage and committed to achieve the desire. While those with the lowest score is the indicator of the commitment to achieve the desire. This shows that the commitment to small enterprises in achieving its business objectives easily changeable. It causes doubts in taking risks and are considered as part of that weaken a small industrial entrepreneurs in facing the challenges of their business.
c. The influence of courage to take risks to achievement sought
The courage to take risks is one part of the entrepreneurial spirit. This concept was adopted from the opinion in Byggrave Schumpeter (1994) that "the entrepreneur as the person who destroy the existing economic order by introducting new products and service, by creating new forms or organization, or by Exploiting new raw materiaI". Then Hisrich (2005) Entrepreneurship is the process of creating something new with value by devoting the Necessary time and effort, assuming the accompanying financial, social risk and receiving the the resulting rewards of monetary and personal satisfaction and independence. Zimmerer in Winardi (2005) a entrepreuneur is one that creates a new business with risk and uncertainty that aims to achieve profit and growth by identifying opportunities through a combination of resources necessary to get the benefits.
The concept was developed achievement of the opinion sought Anoraga (2005) which defines the achievement sought as a behavior as output (output) of a process many different components underlying psychiatric or produce more and better quality, with the same effort. Then, if of the opinion Saiman (2009) as creating an activity or work or employment or business activities. Therefore seeks a business move, trying also synonymous with the work, but work in the business world. In addition, the achievement can be interpreted as the result or output of a purpose or goal attainment. It is as presented by Mangkunagara (2005) that is equal to the performance achievement is the result of the quality and quantity of work achieved by a person in performing their duties in accordance with the responsibilities given to him. According to Tika (2010) achievement is the implementation of the results of the work function at a specific time period. It is also confirmed by the opinion in Sutrisno (2010) states that a person's work performance was successful in doing the job. Based on the understanding of achievement trying it can be concluded that the achievement sought is a behavior at the outcome of a process of a wide variety of psychiatric component is behind them or region contribute more and better quality, with the same effort.
Based on the results of research conducted to prove that they are willing to take risks to have a good performance when compared with those who are less willing to take risks in business. The courage to take the highest risk of a small business in the city of Pekanbaru is the speed of decision-making, shows that small business owners a quick look at the profit opportunities they can do. Then on the achievement of the highest sought is an increase in profits generated by the entrepreneurs themselves, this means that the faster decision-making effort the faster increase in profits earned. Then the lowest indicator is in its ability to think positively, whereas the indicators of achievement sought is on customer feedback, this means that entrepreneurs who have a negative attitude will immediately responded negatively also by customers towards the products.

4. Conclusions

This research resulted in a conclusion with regard to the achievement sought which are also linked with the courage to take risks and partnerships as well as self-concept in detail as follows:
1. The business partnership and concept themselves have a significant influence on the courage to take risks as an entrepreneur business. Of the two variables are variables self-concept is superior to a business partnership, it meant that an entrepreneur must have a clear vision of the future with a clear vision that will foster courage in taking risks because they contemplate previous efforts.
2. The courage to take risks also provide a considerable influence on the performance of endeavor, a businessman who dared to take the risk to be lucky. It actually can be interpreted that courage is the basic capital in being a brave man to open his business starting from today (small businesses) do not need to wait ready raised new capital to start a business.
3. Overall it can be concluded that the achievements of an entrepreneur can be intervened by the attitude of one's courage in taking risks and this attitude is intervened by its ability to establish partners and also the concept of self or a clear vision for the future.

References

[1]  Anoraga, Panji. 2005. Psikologi Kerja, Rineka Cipta, Jakarta.
[2]  Burns. R.B. 1984. The Self Concept. Theory, Measurement and Behaviour. Longman. London.
[3]  Bharadwaj, S.G., et. Al., 1994, “Sustainable Competitive Advantage in Service Industries: A Conceptual Model and Research proposition, Journal of Marketing, Vol. 57, pp. 83-99.
[4]  Endang. Sri. 2011. Peran Ketidakpastian Lingkungan pada Hubungan antara Karakteristik Pribadi Pengusaha dengan Kinerja UKM Sektor Industri Di Malang Jawa Timur (Studi dengan Trianggulation Mixed Method). Dissertation, http://karya-ilmiah.um.ac.id/index.php/disertasi/article/view/17254.
[5]  Hartono. 2013. Analisa Faktor Individual Pengusaha Mikro Dan Kecil Sektor Informal Dan Hubungannya Terhadap Kinerja Bisnis Di Jawa Timur, Jurnal Agora, Vol 1, No 3. http://studentjournal.petra.ac.id/index.php/manajemen-bisnis/article/view/1154.
[6]  Junia, Wina. 2011. Pengaruh Jiwa Kewirausahaan dan Motivasi Terhadap Kinerja Usaha Para Pengusaha Butik di Istana Plaza Bandung. Tesis, Fakultas Ekonomi Manajemen Universitas Komputer Indonesia.
[7]  Kartasasmita, Ginanjar. 2006. Pemberdayaan Ekonomi Rakyat Melalui Kemitraan Guna Mewujudkan Ekonomi nasional Yang Tangguh dan Mandiri. Makalah pada National Institute of Development Entrepreneurs Seminar Small, Medium Enterprises and Cooperatives in Jakarta.
[8]  Koza, Mitchell and Lewin, Aril. 2000. Managing Partnership and Strategic Alliances: Raising The Adds of Success European Management, Journal Vol: 16 No.2.
[9]  Kreitner, Robert. 2003. Perilaku organisasi. Salemba Empat. Jakarta.
[10]  Mangkunegara, Anwar, Prabu. 2005. Evaluasi Kinerja SDM, Refika Aditama, Bandung.
[11]  Pillay. 2006. “The Internal And External Environment For Small Business Growth In Pietermaritzburg.” Bulletin of Indonesian Economic Studies, Vol. 47, No. 2. Australian National University. Canberra.
[12]  Rante, Yohannes. 2010. Pengaruh Budaya Etnis dan Perilaku Kewirausahaan Terhadap Kinerja Usaha Mikro Kecil Agribisnis di Provinsi Papua. Jurnal Agora, Vol 12, No 2. http://jurnalmanajemen.petra.ac.id.
[13]  Saiman, Leonardus. 2009. Kewirausahaan, Teori, Praktik dan Kasus-kasus, Salemba Empat, Jakarta.
[14]  Sutrisno, Edi. 2010. Budaya Organisasi, Kencana Prenada Media Group, Jakarta.
[15]  Tell, Joankim. 2000. Towards Interorganizational Empowerment? Employee Participation in the Development of a Network of Small Business and Enterprise Development. Journal of Small Business Management, Vol 18 No.5.
[16]  Thomas, Man. 2007. Employee Participation in the Development of a Network of Small Business and Enterprise Development. Journal of Small Business Enterpise Canadian Council Vol 20 No.9.
[17]  Tika, Moh, Pabundu. 2010. Budaya organisasi dan peningkatan kinerja perusahaan, Bumi Aksara, Jakarta.
[18]  Winardi. 2005. Manajemen Pemasaran, Penerbit Sinar Baru, Bandung.
[19]  Yukl. 1998. Perilaku Organisasi dan Psikologi Personalia, Termahan Muc Shobaruddin, Bina Aksara, Jakarta.
[20]  Yusi, M. Syahirman. 2012. Analisis Kondisi Internal Dan Eksternal Usaha Kecil di Kota Palembang Implikasinya Terhadap Pencapaian Hasil Usaha, Jurnal Orasi Bisnis Edisi ke-VIII, November 2012. http://jurnal.polsri.ac.id/index.php/admniaga/article/download/170/105.