JRSSEM 2023, Vol. 02, No. 7, 1271 – 1278

E-ISSN: 2807 - 6311, P-ISSN: 2807 - 6494

DOI : 10.36418/jrssem.v2i07.354 https://jrssem.publikasiindonesia.id/index.php/jrssem/index

SUCCESS MODEL PARTNERSHIP PROGRAM SME AT PT.

PERKEBUNAN NUSANTARA III

Junaidi

, Zulkarnain Lubis

, Ihsan Effendi

Medan Area University, Indonesia

1,2,3

e-mail: junaidisp87@gmail.com, zulkarnainlubis@uma.ac.id, ihsaneffendi@uma.ac.id

*Correspondence: junaidisp87@gmail.com

Submitt

: 15

January 2023

Rev

: 22

January 2023

Acc

: 06

February 2023

Abstract: Small and medium enterprises are one of the business units that help the country a lot in

reducing the unemployment rate. This sector makes a major contribution to supporting the national

economy. Real steps and efforts are needed to support and increase the power of SMEs. The main

objective of this study is to determine the direct and indirect effects of HR experience, capital,

knowledge, social networks, social media, perceived customer benefits, and perceived competitive

value on the performance of SMEs through partnership programs. The approach in this research is

causal research (cause and effect). The population in this study is the SME business actor who is

fostered at PT. Perkebunan Nusantara III, with total of 243 SME business actors. While the sampling

technique used a saturated sample where 243 SMEs were sampled in this study. Data collection

techniques used a questionnaire with an ordinal measurement scale. Data analysis used AMOS-based

Structural Equation Modeling (SEM). The results showed that the direct experience of human

resources, capital, social networks, social media, and perceived customer benefits had a significant

effect on the partnership program, while knowledge was not significant for the partnership program.

The results showed that the direct experience of human resources, capital, social networks, social

media, perceived customer benefits, and perceived competitive value had a significant effect on the

performance of SMEs, while knowledge was not significant on the performance of SMEs. Indirectly

the experience of human resources, capital, knowledge, social networks, social media, perceived

customer benefits, and perceived competitive value had a significant effect on the performance of

SMEs through partnership programs.

Keywords: Partnership, Performance, SEM.

Junaidi

, Zulkarnain Lubis

, Ihsan Effendi

| 1272

INTRODUCTION

In connection with government policies

in terms of partnerships in recent years, the

government has begun to take an approach

that encourages the creation of

cooperation between the government and

entrepreneurs. Where many things can be

done jointly between the government and

entrepreneurs through various programs.

Such a partnership between the

government and business actors is a form

of cooperation between the government

and the business sector, allowing them to

share resources, risks, and mutual benefits

to change existing environmental practices

with innovative findings (Lin & Lin, 2016).

SMEs have an extraordinary influence

on a country's economy, both developed

and developing countries. Micro, small, and

medium enterprises (SMEs) certainly play

an important role in supporting the

economy in a better direction

(Ochinanwata et al., 2021). In both

developed and developing countries, it

turns out that SMEs are the largest

contributor to the formation or growth of

the gross domestic population (GDP) and

contribute the most to employment than

large businesses, this shows the

importance of SMEs for the country's

economy (Franco & Haase, 2020).

The large potential for the

development of SMEs has resulted in the

emergence of many SMEs which are

managed in a haphazard and

unprofessional way, especially from a

managerial aspect. This resulted in many

SMEs having low performance and in turn

going bankrupt. SME performance is the

result of the evaluation of company work

achieved by both individuals and groups

obtained based on their roles and

responsibilities towards tasks that have

been given and determined by the

company in a certain period (Mutegi et al.,

2015). However, so far the performance of

UKM has not been able to achieve

maximum results, especially in the failed

assisted UKM.

Management of SMEs should not be

carried out carelessly and without good

management due to the strategic role of

SMEs and the limited ability of SMEs to be

able to grow (Hendratmoko, 2021). The

existence of partnerships between SMEs

and programs aims at business continuity,

improving the quality of resources,

increasing partner income, and increasing

business scale to grow and improve the

business capabilities of partner groups.

This partnership pattern is one of the

solutions for improving the performance of

SMEs (Wulandari & Nadapdap, 2020).

There is one factor that affects the

performance of SMEs, namely through a

partnership program. The partnership

program is a partnership program with

SMEs whose capital is obtained from

BUMN profits, this program aims to enable

SMEs to develop. In addition, there is also

an environmental development program

that aims to empower the social conditions

of the community which also uses BUMN

profits. Total funding from profits is a

maximum of 2% (two percent) of net profit

for both partnership programs and

environmental development programs

(Prajwalita & Tarmizi, 2015).

If seen from the initial observations

there are very clear problems regarding the

condition of PT. Perkebunan Nusantara III

1273 | Success Model Partnership Program SME At PT. Perkebunan Nusantara III

currently has many weaknesses in

management such as limited human

resource capabilities, limitations in

obtaining additional capital, lack of

knowledge in business development, social

networks that are not well established, lack

of understanding in the use of information

technology, lack of perception in building

value benefits for consumers and not

maximizing value in creating competitive

advantage in SME business units.

As a partner of PT. Perkebunan

Nusantara III will have responsibility for the

partnership program. The performance of

SMEs can be said to be good if they can

increase existing sales, increase annual

profits, increase capital, increase the

number of customers each year, can

achieve the targets to be achieved, and can

meet existing needs. Because success in the

partnership program is not only the hope

of SMEs but for PT. Nusantara Plantation III.

So far, the partnership program

conducted by PT. Perkebunan Nusantara III

is the nature of providing access to capital,

business assistance, supervision, human

resource development, and helping to

open market networks in business

development. With this program, it is

expected to be able to improve the

performance of SMEs in facing business

competition. However, the implementation

of the partnership program that has been

carried out by PT. Perkebunan Nusantara III

does not always go well, the possibility of

the existing partnership program makes it

difficult for partners to pay installments, the

business does not run smoothly, and even

going bankrupt and closing still occurs.

There needs to be a study on the

success model of SMEs through the

partnership program. It is based on this that

the study of the partnership program is

important.

MATERIALS AND METHODS

This study uses an associative

approach, namely research that seeks to

establish a relationship between two or

more variables. With this research, a theory

can be developed that can explain, predict,

and control a phenomenon or event.

The data used is quantitative data

collected through survey methods. This

study will take respondents from a

population and will collect main data

through questionnaires and direct

interviews with respondents.

The population according to (Lubis,

2021) all research objects that have certain

traits and characteristics are determined by

a researcher as a data source and then draw

conclusions based on the data collected.

The population in this study are SMEs

assisted at PT. Perkebunan Nusantara III

with a total of 243 SME business actors.

One type of sampling technique is

using a saturated sample technique. This

saturated sample technique can be

interpreted as a sampling technique if the

entire population is used as a sample. The

use of this method is done if you want to

produce very small errors when

generalizing or when the number of

members of the population is very small

(Lubis, 2021). Therefore the sample used in

this study is 243 SME business actors.

It is very important to determine the

right data collection technique, this is

because it can determine whether a study

is good or bad. Data collection is an effort

Junaidi

, Zulkarnain Lubis

, Ihsan Effendi

| 1274

made to obtain real and accountable

information or information and truth. In

conducting this research using several

methods, namely:

1. Observation

Observation is an activity to provide

observation or attention to the research

object by utilizing the five senses. This

observation is also known as observation.

In this study, observations were made by

looking directly at the conditions in the

field, especially the partners in the

partnership program from PT. Nusantara

Plantation III.

2. Questionnaire / Questionnaire

The questionnaire is one of the media

used to obtain some news that is known by

the informants. This questionnaire can be in

the form of written questions.

There are two sources of data needed

in this study, namely primary data which is

also called primary data, and secondary

data which is also called secondary data.

Primary data or primary data derived from

questions or Questioners addressed to the

partnership of PT. Nusantara Plantation III.

Secondary data was obtained through PT.

Perkebunan Nusantara III is a list of

partners participating in the partnership

program

The analysis model using Structural

Equation Modeling (SEM) or structural

equation model is a collection of statistical

techniques that have the probability of

testing a series of complicated bonds

simultaneously. The step required before

processing data through AMOS is to use

the Successive Interval Method (MSI) to

convert ordinal data into continuous data,

the same as that used in the AMOS

program. Not only as a norm, but the use

of an interval scale for parametric statistics

is also to convert the data into a normal

distribution. There is no need to perform a

normality test when performing

transformations with this model. In

addition to data that is required to have an

interval and ratio scale, the data must have

a normal distribution, this is one of the

conditions for using parametric statistics.

This is different from the nonparametric

statistics used to measure distribution.

Evaluating the suitability of the model

through a review of various goodness of fit

criteria is done by: p-value, RMSEA, NFI,

NNFI, CFI, IFI, RFI, Std. RMR, and GFI. Testing

the model using the overall model and

statistical goodness of fit along with testing

the path coefficients: Test the significance

of the path coefficients (α and β) using the

t-test with a significance p of less than 0.05

and meet the criteria of Statistical

Goodness of Fit with all coefficients in the

model being significant.

This study uses several software to

process data, namely SPSS, Excel, and

AMOS (Linear Structural Relationships). The

raw data obtained and suitable for

processing were recapitulated with the help

of Excel and SPSS software. Then, indicator

data per latent variable is processed using

the CFA method through the AMOS

software. From the valid and reliable CFA

results, data processing was continued with

the SEM method, which is the final method

in this study, with the help of AMOS

software.

RESULTS AND DISCUSSION

When IBM-AMOS (Version 22)

estimates the model, it evaluates the

1275 | Success Model Partnership Program SME At PT. Perkebunan Nusantara III

accuracy of a model. A complete evaluation

of each model is carried out by considering

the fulfillment of the assumptions in the

Structural Equation Modeling (SEM), the

same as described in the following

description. The choice of data analysis

using SEM is because the definition of

statistical analysis itself is a multivariate

technique that mixes aspects of factor

analysis and multiple regression to

estimate a series of interdependent ties

simultaneously. Not only that, being

superior in providing estimates of errors in

estimating and measuring parameters is

the reason for choosing data analysis using

the SEM method. This can be interpreted

that in analyzing data using the SEM

method, it can consider the measurement

model errors and structural equation

models simultaneously.

A test is needed before data analysis is

carried out, to see if the data used is

incorrect which will later be used as a basis

for decision-making. Testing the data is in

the form of checking whether or not there

is a nonresponse bias, using the maximum

likelihood estimation method with a

structural equation model, in addition to

using data validity and reliability tests to

determine the probability of exceeding the

assumption limits that must be complied

with.

To test the research model at the

goodness of fit level, the research model

suitability test is used. Measuring the ability

of a model to explain various data using the

GFI measure. The value range of GFI is from

zero to one. In reality, there are no

provisions regarding good GFI values. But it

can be interpreted that a model with a GFI

value of almost one means that it is in a

good category. Most studies use the

minimum limit is 0.9. Shown in Figure 1 is

the result of the AMOS analysis.

Figure 1. Amos Output

The results of the causality test show

that all variables have a causal relationship

between variables and other variables. In

addition, the causality test shows the value

of the possible critical ratio which has a

three-star sign. the results of Amos can be

seen in table 1. The estimate is the value of

influence between variables. The estimate is

the value of influence between variables.

while the significance can be seen from the

p-value, standard error dan critical ratio.

Junaidi

, Zulkarnain Lubis

, Ihsan Effendi

| 1276

Table 1. Result of Amos

Variable

Estimate

Std. Error

Crit. Ratio

Decision

Experience -> Partnership

.248

.030

8.259

***

Accepted

Capital -> Partnership

-.558

.041

-13.440

***

Accepted

Knowledge -> Partnership

-.028

.022

-1.255

.209

Rejected

Social Network -> Partnership

1.568

.099

15.861

***

Accepted

Social Media -> Partnership

.414

.062

6.690

***

Accepted

P. Customer Benefit -> Partnership

-.111

.042

-2.654

.468

Rejected

P. Competetive Value-> Partnership

.053

.073

.725

***

Accepted

Experience -> Performance

.445

.083

6.037

***

Accepted

Capital -> Performance

-.753

.094

-7.971

***

Accepted

Knowledge -> Performance

.049

.027

2.808

***

Accepted

Social Network -> Performance

1.616

.248

6.506

***

Accepted

Social Media -> Performance

2.124

.101

20.968

***

Accepted

P. Customer Benefit -> Performance

-.375

.054

-6.886

***

Accepted

P. Competetive Value->

Performance

.531

.092

5.749

***

Accepted

Partnership -> Performance

-.587

.144

-4.077

***

Accepted

Human Resources Experience, Capital,

Knowledge, Social Networks, Social Media,

and Perceived Competetive Value

significantly influence the partnership

program. The results of this study are

significant because they have a probability

value (p) which produces an asterisk and a

critical value greater than the standard

error value.

There is a significant of Human

Resources Experience, Capital, Knowledge,

Social Network, Social Media, Perceived

Customer Benefit, Perceived Competetive

Value, and Partnership on Performance.

Stakeholders are needed to achieve

partnership success, so the results of this

study produced a Partnership Success

Model. Stakeholders involved in the

Partnership Program include PTPN III,

Universities, Regional Governments, and

Other Companies (business world).

Universities can play a role through

lecturer and student service programs to

assist PTPN III in carrying out Assistance

and Training, Audit and Evaluation, and the

Selection Process. One of the programs

that can be run is the Kedaireka Matching

Fund. The program requires companies to

spend money in the form of CSR funds to

improve the quality of human resources for

fostered SME partners, as well as the

Ministry of Higher Education will provide

financial assistance in the amount of

company CSR funds, this 1:1 ratio is

determined from the Kedaireka Program.

Funds obtained can help SMEs to have 1

unit of the laptop, while mentoring and

training can be carried out by lecturers and

students. Some of the Assistance and

Training programs that can be carried out

are training on the use of social media,

digital marketing workshops, and product

innovation.

1277 | Success Model Partnership Program SME At PT. Perkebunan Nusantara III

Local government can play a role

through the Office of Cooperatives and

SMEs through the Bazaar and Expo

programs so that partner SMEs can

improve social networks and can assist in

the audit and selection process as well as

mentoring and training.

The business world can play a role

through industries that have related fields

so that SMEs can collaborate to make

products, expand market access and assist

the selection process. Related industries

can be invited to the Focus Group

Discussion activities to broaden the

knowledge of SMEs Fostered Partners and

add to social networks.

PTPN III through the SME and

Community Development Program

Division must be involved in the selection

and audit process so that it is not just

providing capital assistance.

Figure 2. Success Model Partnership

Program

CONCLUSIONS

Experience can be increased through

mentoring and training programs, and the

element of experience must be an aspect in

determining which SMEs qualify for the

partnership program.

The capital that has been given to the

assisted SMEs should be audited and

evaluated within a certain period. Whether

the capital provided is used by the

provisions or not.

Knowledge can be increased through

mentoring and training programs.

Elements of knowledge need to be audited

and evaluated. The element of knowledge

must also be an aspect of determining

which SMEs are eligible to receive capital

assistance and participate in the

partnership program.

Increasing social networks can increase

market access so that they sell more

products. The social network element must

be an aspect of determining which SMEs

are eligible to receive capital assistance.

Social media can be improved through

mentoring and training and after the

partnership program is running it needs to

be audited and evaluated to see how far the

ability to use social media has increased.

Perceived Competetive Value and

Perceived Consumer Benefit must be

aspects in determining which SMEs are

eligible to receive capital, after passing

these two aspects can be improved

through mentoring and training. After the

program is running, an audit and evaluation

are needed to review the extent to which

these two perceptions have improved.

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, Zulkarnain Lubis

, Ihsan Effendi

| 1278

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under the terms and conditions of the Creative

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(https://creativecommons.org/licenses/by-sa/4.0/).