The Influence of Marketing Strategy and Port Performance on Enhancing The Competitiveness of Maritime Economy at The Patimban International Port (PIP)

 

Dodi Sugianto, Desamen Simatupang, April Gunawan Malau

1 Sekolah Tinggi Ilmu Pelayaran, Indonesia

2,3 Universitas Pamulang, Indonesia

Email: [email protected]

 

 

Keywords

Abstract

community empowerment, PAK DALANG, SARAH, Socio-Economic Growth, Waste Management

This research presents successful community empowerment programs focusing on sustainable tourism development and waste management in Prabumulih, Indonesia. The Desa Wisata Burai Program, initiated in 2016 by Pertamina EP (PEP) Prabumulih, aimed to enhance the tourist experience by providing recreational facilities, such as saung, galleries, and kiosks, while supporting local artisans. Alongside this, the SARAH (Sampah Jadi Berkah) Program, started in 2020, focused on integrated waste management, transforming waste materials into compost and innovative upcycled products. Collaborations with local institutions resulted in the creation of herbal soaps and probiotic beverages. Both initiatives demonstrated positive social, economic, and environmental outcomes, including increased income generation, environmental preservation, and strengthened community bonds. The programs' successes underscore the importance of community-based approaches in sustainable development, providing replicable models for similar regions. The Desa Wisata Burai and SARAH Programs exemplify how targeted interventions can foster community empowerment, environmental conservation, and socio-economic growth, highlighting the significance of collaboration between various stakeholders to achieve long-term sustainable development goals.

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1.      Introduction

The maritime resources, as a maritime nation, are clearly a sustainable competitive advantage for the development of ports in Indonesia because as long as this nation exists, these resources will continue to exist. These resources, both physical and the skills of its people, along with their spirit, are highly reasonable to be used as a strategic asset for port competitiveness, as they are non-tradeable, as per the resource-based view concept. However, the utilization of these resources is not an easy task and often requires a management team to create a catalytic condition within the organization that can motivate people to accept new challenges.

In line with this, during President Joko Widodo's current administration, there has been discourse about the Indonesian Maritime Revolution. The Maritime Revolution in President Jokowi's government began with the grand vision of building a "Maritime Highway" connecting the western and eastern parts of Indonesia's ports, from Belawan to Sorong (Dermaga, January 2016:23). Thus, the government's current focus is on developing port infrastructure and other maritime potentials, with one of its primary goals being to enhance the integrity of the national logistics flow.

Ports, as gateways for trade and the economy, play a crucial role in economic activity. Public service providers have a significant role in the economy. Maritime ports are optimized as nodes in the national transportation network, in addition to their other roles as gateways for economic activities, support for industrial and trade activities, distribution centers, production, and cargo consolidation points, contributing to the realization of the national maritime vision. Maritime ports are a crucial link in the entire domestic and international trade process. They are not just places for loading and unloading goods and passengers but also part of the logistics chain that provides value-added services.

With the achievement of national logistics integration, all logistics activities in Indonesia, from rural to urban areas and between regions and islands, are expected to operate effectively and efficiently, becoming an integrated national unit within the territory of the Unitary State of the Republic of Indonesia (NKRI), which will bring prosperity to the Indonesian people. One essential element in achieving this is the presence of ports as providers of facilities for loading and unloading goods.

According to the Regulation of the Minister of Transportation of the Republic of Indonesia Number: PM 60 Year 2014 concerning the Organization and Operation of Loading and Unloading of Goods from and to Ships, a port is defined as a place consisting of land and/or water with specific boundaries used for government activities and business operations that serve as a place for ships to dock, embark and disembark passengers, and/or load and unload cargo, including terminals and ship berths equipped with shipping safety and security facilities and supporting port activities and as a transfer point for intermodal and intramodal transportation.

This definition explains that ports play a crucial role in connecting national logistics distribution activities because they serve as places for loading and unloading goods, particularly in terminals. Ports are the primary facilities for the loading and unloading of logistics, which will be distributed to various regions in Indonesia and as entry and exit points for goods both nationally and internationally.

Regarding loading and unloading activities, the Regulation of the Minister of Transportation of the Republic of Indonesia Number: PM 60 Year 2014 concerning the Organization and Operation of Loading and Unloading of Goods from and to Ships explains that: a. Stevedoring is the work of unloading goods from ships to barges/rafts/trucks or loading goods from docks/barges/trucks into ships, including arranging them in the ship's hold using ship or land cranes. b. Cargodoring is the work of releasing goods from ropes/nets (extackle) at the dock and transporting them from the dock to warehouses/storage areas or vice versa. c. Receiving/Delivery is the work of moving goods from stockpiles/storage areas in warehouses/storage areas and delivering them until they are arranged on vehicles at the warehouse/storage area gate or vice versa.

Maritime transportation is one of the transportation modes alongside air and land transportation. In various countries, maritime transportation is used as a solution for moving goods or people in large quantities over long distances. Examples of maritime transportation for goods include tankers, bulk carriers, and container ships. Container transportation involves various transportation modes. Container terminals are the links in transporting containers from the origin port to the destination port, equipped with container storage yards, container loading and unloading facilities such as ship cranes/quay cranes, field cranes/rubber tire gantry cranes, forklifts, straddle carriers, reach stackers, trucks/trailers, gate-in, and gate-out facilities.

Ports play a vital role in international trade as the main gateways for import and export cargo. In this regard, the government is making efforts to prepare Patimban Port, located in Subang Regency, West Java, to become one of the largest ports in Indonesia to support export and import activities. In the future, Patimban Port will be synergized with Tanjung Priok Port, located in Jakarta, to improve cost and time efficiency and reduce national logistics costs. With its strategic location, Patimban Port will be connected to toll roads and railways, enhancing the potential for the development of ten industrial zones along the northern corridor of Java Island. Patimban Port holds great importance for the national economy, as it is dedicated to becoming a major hub for motor vehicle production in Indonesia and automotive exports in the global market.

With the operation of Patimban Port, players in the automotive industry can make Patimban Port a strategic partner in cargo handling activities for import and export, making it an international trading center. Patimban Port is one of the National Strategic Projects (PSN) as stipulated in Presidential Regulation (Perpres) No. 47 of 2016 concerning the Designation of Patimban Port in Subang Regency, West Java Province, and Presidential Regulation No. 58 of 2017 concerning Amendments to Presidential Regulation No. 3 of 2016 concerning the Acceleration of PSN Implementation. The selection and determination of the port location are based on the results of pre-Feasibility Study (FS) and FS studies conducted in 2015. The suitability of Patimban Village as a port development location was assessed from various aspects, including transportation, legal and institutional, technical, environmental, maritime safety, and oil and gas aspects.

Patimban Port serves as a connection between the western and eastern parts of Indonesia. The port is essential for addressing waiting times for ships, which is currently a key area of improvement for service under President Joko Widodo's government to support the success of sea toll transportation in Indonesia. Sudarmo (2016) identified 8 key success factors for sea toll transportation, one of which is the improvement of port services and operations. According to Lasse (2012), the motto of modern ports is to provide safe, efficient, and fast services for ships entering and berthing at the port, as well as for loading and unloading cargo, warehousing, receiving, and delivering cargo as quickly and efficiently as possible.

The following is the realization data at Patimban Port during the period 2021-May 2022.

 

Based on the data above, these companies play a role in supporting the performance of Patimban port to produce effective and efficient services, especially coupled with the enactment of the Asean Economic Community (AEC) in the Southeast Asian region which demands trade services between countries with better infrastructure. Improving the quality of port services along with their maintenance is certainly important to do so that the port is able to support the increase in industrial competitiveness in international trade.

The variety of functions and services provided by ports makes ports often analogous to a system. The port system receives support from at least three main support sub-systems, namely: 1) the implementationor port administration / port authority, namely the government / ministry of transportation and 16 other government institutions; 2) business or port business, and port users or port users, i.e. the private sector, such as exporters, importers, and 3) port-specific transport companies. Thus, whether or not ports perform functions and provide a variety of services will depend largely on the synergy and interaction of the three subsystems as mentioned above.

The necessity to integrate the three subsystems, namely: implementation, business, and use, makes efforts to improve port performance tend to be complex. Such efforts need to involve cross-sectoral institutional roles and require comprehensive and mature concepts, planning, programs, and implementation strategies. In addition, consistency, transparency, and common perceptions among stakeholders are important keys to the integration process of the three subsystems. Therefore, developing a regulatory framework that is able to regulate mechanisms and working relationships among stakeholders from each subsystem is important to facilitate the integration process.

In order to be integrated with logistics systems and supply chains, ports need reforms in terms of regulation and management. This regulatory and management reform has at least three strategic objectives. First, reduce or completely eliminate rules and regulations that hinder competition for port development and management. Second, create rules that can encourage a climate conducive to competition. Third, facilitate transitions leading to a healthy competitive climate. In line with the above, the government needs to reposition its role in the management and development of ports.

Many factors affect the national maritime economic power related to the existence of Patimban Port in terms of marketing strategy and port performance. Patimban Port located in Patimban Village, Pusakanegara District, Subang Regency, West Java Province, is designated as a national strategic project as stipulated in Presidential Regulation Number 3 of 2016 concerning the Acceleration of National Strategic Project Implementation. The implementation of Patimban Port as a national strategic project, according to this Presidential Regulation, includes planning, construction, operation and business activities, technical guidance and guidance on port operation management, as well as guidance to ensure shipping and environmental safety. The construction of this port is the Government's strategy to reduce excess capacity at Tanjung Priok Port. Basically, the port has an important role in the development of industry, trade and services and the hope of Subang Regency to become a metropolitan industrial city.

To be able to compete with other ports, carry out several strategies ranging from providing door-to-door logistics services to service marketing strategies. Marketing itself has revolutionized the world economy, and since its rapid development and today all existing businesses depend on marketing activities and successful philosophy.

The marketing function for a company is a very important element, especially in a business environment with very competitive competition such as port services. Port services offered will not be widely known and will not sell well in the market if the marketing activities carried out are not good. The importance of providing port support facilities, including hinterland.

The marketing process in the port industry is three main aspects, namely:

1.    Forming customer loyalty through customer satisfaction. Customer satisfaction is the basic framework for creating a good relationship in the long term between the company and its customers. This ability to create customer satisfaction effectively is what will be the foundation of creating this kind of relationship. This is important because it is now increasingly realized that service quality and customer satisfaction are very vital in the business world.

2.    Build mutual trust with other ports. Competition between ports in the international world is currently very fierce. All companies are increasingly realizing that they need to use their core strengths to create multilateral cooperation with other companies in order to realize beneficial cooperation between them. The main purpose of this collaboration is of course to meet customer service needs, improve service quality to win customer satisfaction.

3.    Creating employees who have loyalty to the company. The mutual trust manifested in the form of support between the company and employees is the basis for the long-term relationship of the company and external customers. Without this basis, the relationship between the client and the company will not be effective at all. Therefore, the dedication of employees will be a key factor in the success of the company's development. In other words, companies need to treat their employees preferentially by arousing their enthusiasm and potential, increasing employee satisfaction and loyalty, and providing good welfare for them.

The 1998 shipping law repealed the previous provision of Law No. 21 of 1992, which provided the foundation for a comprehensive reform of Indonesia's port system. The law abolished the government's monopoly on the port sector and opened up opportunities for private sector participation. Furthermore, the law describes more specifically in Government Regulation Number 61 of 2009 concerning Ports. The service industry plays a very important role for the economy of a country. This field is one of the strategic areas that overshadows the lives of many people. The role of ports is also projected to be higher assuming that there are no regulations that harm the export and import system and human transportation, as well as stable production levels from natural resource management in the region and constraints obtained from land transportation.

Ferdian Dwidarma, Yusuf Wibisono, Mohamad Zaini and Riza Lestari (2021) where the method used in this research is qualitative descriptive, where the approach is based on interviews. Books, journals, and articles from related agencies are also used as references for this research. With the construction of the Patimban port, there is also the potential for the development of Industrial Estates around the port, and later the Patimban port will also be supported by road access that can make it easier to reach. According to Nugraha (2015), efforts made to improve the performance of a port include increasing the productivity of loading and unloading equipment and the number of TKBM for general cargo shipsand accelerating the process of entering ships by using faster tugboats. According to Wibowo (2010) the most dominant variables that affect the performance of a port are: Productivity of loading and unloading, readiness of loading and unloading equipment, handling documents, tugboat requests, and ship arrival time.

Based on the identification of the problems discussed in this study, it is necessary to formulate as follows: 1. Is there an influence of marketing strategy on the competitiveness of the National Maritime Economy? 2. Is there any influence of Patimban Port performance on the competitiveness of the National Maritime Economy? 3. Is there a simultaneous influence of marketing strategy and performance of Patimban Port on the competitiveness of the National Maritime Economy?

Based on the formulation of the problem above, the objectives of this study are 1. To determine the influence of marketing strategies on the competitiveness of the National Maritime Economy. 2. To determine the effect of Patimban Port performance on the competitiveness of the National Maritime Economy. 3. To determine the effect of marketing strategy and safety culture simultaneously on the competitiveness of the National Maritime Economy

Realizing the importance of Patimban Port, the researcher felt interested in discussing more deeply " The Influence of Marketing Strategy and Port Performance on Enhancing The Competitiveness of Maritime Economy at The Patimban International Port (PIP)"

 

2.     Materials and Methods

This research employs a descriptive research method, which is a scientific approach to gather data for specific purposes. It utilizes a quantitative approach based on the philosophy of positivism and is conducted on a particular population or sample. The research involves several stages, including the creation of a draft proposal, mentoring processes, proposal validation, proposal improvement, data collection, data analysis, and the preparation of research reports.

The type of data used is quantitative data obtained through questionnaires. There are two sources of data: primary data (collected directly from respondents through questionnaires) and secondary data (supporting data from journals, information sources, and internal organizational data). Data collection techniques include field research, questionnaires, observations, and library research. The research population consists of users of the services at Patimban Port, with the target population being for the year 2021.

The research sample is selected using the incidental sampling technique. The research variables consist of independent variables (marketing strategy and Patimban Port performance) and dependent variables (the competitiveness of the National Maritime Economy). Data analysis is performed using the Partial Least Square (PLS) statistical technique, including descriptive analysis, inferential analysis, and hypothesis testing. In the model measurement stage (Outer Model), an evaluation is conducted to determine validity, reliability, and tests for convergence and divergence. In contrast, in the structural model stage (Inner Model), path coefficient analysis, coefficient determinant (R-squares), and hypothesis testing are carried out.

Hypothesis testing in this research includes t-statistics for each direct and indirect influence path, with a significance level of 5%. The hypotheses put forward include the influence of marketing strategy on the competitiveness of the National Maritime Economy, the influence of Patimban Port's performance on the competitiveness of the National Maritime Economy, and the combined influence of marketing strategy and Patimban Port's performance on the competitiveness of the National Maritime Economy. The results of this research will contribute to understanding the relationship between marketing strategy, Patimban Port's performance, and the competitiveness of the National Maritime Economy at Patimban Port.

 

3.     Results and Discussions

There is a positive and significant influence of marketing strategies on the competitiveness of the maritime economy at Patimban International Port (PPI). This means that an effective marketing strategy can have a positive and significant influence on the competitiveness of the maritime economy at Patimban International Port (PPI).

A strong marketing strategy will increase visibility and awareness about Patimban Port among shipping companies, cargo owners, and other business people. Information disseminated through marketing campaigns can attract market attention and highlight the advantages and advantages of ports, so more business people will consider using Patimban Port as one of their options. An effective marketing strategy can also attract new investment and business to Patimban Port. When the port has a good reputation through good promotion, it can build confidence among investors and businesses to invest and operate in the port. New investments can increase port capacity and infrastructure, which in turn will increase the competitiveness and attractiveness of Patimban Port.

With the right marketing strategy, the port can encourage more shipping companies and cargo owners to use its facilities. More ships and cargo docking at Patimban Port will increase cargo traffic, which in turn will have a positive impact on the maritime economy of the region. A good marketing strategy will help build a positive image and trust among stakeholders. A positive image of Patimban Port as a reliable, efficient, and user-friendly port will help retain and attract more business.

An effective marketing strategy will help highlight the competitive advantage possessed by Patimban Port. Advantages such as strategic location, modern facilities, or excellent services can be key factors in attracting more business and facing competition with other ports in the region. Marketing strategies can influence the behavior of stakeholders, including shipping companies, cargo owners, and other business partners. By providing relevant and intriguing information, marketing strategies can persuade them to choose Patimban Port as their main or even exclusive choice.

There is a positive and significant influence of port performance on maritime economic competitiveness at Patimban International Port (PPI). Good port performance has a very important impact in improving the competitiveness of the maritime economy, and this means that an efficient and reliable port will provide significant benefits for the growth and economic development of the region and the country as a whole.

Efficient and well-organized port performance can speed up the process of loading and unloading ships and handling cargo. This efficiency reduces ship waiting times, speeds up cargo distribution, and reduces logistics costs. The more efficient the operation of the port, the more attractive it is for shipping companies and cargo owners to use the services of the port. Reliable and reliable port performance in running its operations consistently on schedule is very important. This reliability gives shipping companies and cargo owners confidence that they can rely on ports to handle their cargo in a timely manner. Punctuality in cargo handling will have a positive impact on the supply chain and help avoid delays that can have a negative impact on the business.

Good port performance includes investment in infrastructure development and capacity building. Adequate capacity and modern infrastructure will enable the port to handle increasingly large and diverse cargo traffic. This will create an environment conducive to the trade and economic growth of the region. Ports with good performance tend to attract more investment and new business. Investment in port infrastructure and facilities will increase the attractiveness of Patimban Port for shipping companies, cargo owners, and other business people. The sustainability of this growth will make a significant contribution to the maritime economy in the region.

Good and reliable port performance will improve the image and reputation of Patimban Port as a professional international port. A positive image will help maintain good business relationships with customers and business partners, as well as increase attractiveness for new companies planning to operate in the region. The port's sustainability-focused and environmentally friendly performance can create a special attraction for customers who care about environmental issues. Patimban Port that is committed to green maritime initiatives will have a positive impact on the competitiveness of the maritime economy in an era that is increasingly aware of sustainability.

There is a simultaneous influence of marketing strategy and port performance on the competitiveness of the maritime economy at Patimban International Port (PPI). In addition, it looks Adjusted RSquare for customer satisfaction construct with a value of 0.816. This shows that the model has a good level of model goodness-fit. This means that the variability of maritime economic competitiveness can be explained by all three variables in the model, namely marketing strategy and port performance of 81.6%.

Overall, it is important to note that an effective marketing strategy must be supported by good port performance. The positive experience of port users will strengthen the impression given by the marketing strategy and help maintain the competitiveness of the maritime economy of Patimban Port in the long run. Good port performance is a key factor in improving maritime economic competitiveness at Patimban International Port (PPI). With a focus on efficiency, reliability, and infrastructure improvement, Patimban Port can continue to grow and make a significant contribution to the maritime economic growth in the region.

 

4.     Conclusion

Based on the results of research that has been conducted in the previous chapter, it shows that there is a positive and significant influence of marketing strategies on maritime economic competitiveness at the International Patimban Port (PPI). There is a positive and significant influence of port performance on maritime economic competitiveness at Patimban International Port (PPI). There is a positive and significant influence of marketing strategy and port performance on maritime economic competitiveness at Patimban International Port (PPI)

 

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