managerial efforts in building organization behaviour

Pertanika J. Soc. Sci. & Hum. 28 (S1): 141 - 153 (2020)

SOCIAL SCIENCES & HUMANITIESJournal homepage: http://www.pertanika.upm.edu.my/

Article history:Received: 9 October 2019Accepted: 3 January 2020Published: 17 March 2020

ARTICLE INFO

E-mail addresses:[email protected] (Rano Kartono)[email protected] (Sasmoko)[email protected] (Yasinta Indrianti)[email protected] (Lasmy)[email protected] (Hendry Hartono)*Corresponding author

ISSN: 0128-7702e-ISSN: 2231-8534 © Universiti Putra Malaysia Press

Managerial Efforts in Building Organization Behaviour(Study of Entrepreneurs in Indonesia)

Rano Kartono1*, Sasmoko2,3, Yasinta Indrianti3, Lasmy1 and Hendry Hartono1

1Department of Management, BINUS Business School, Undergraduate Program,Bina Nusantara University, Jakarta Barat 11480, Indonesia2Faculty of Humaniora, Bina Nusantara University, Jakarta Barat 11480, Indonesia3Research Interest Group in Educational Technology, Bina Nusantara University,Jakarta Barat 11480, Indonesia

INTRODUCTION

As the world’s fourth-largest populated country, with a population of around 260 million people, Indonesia has huge market potential to encourage local entrepreneurs to develop managerial efforts in building organizational behaviour (Donaldson & Ko, 2010; Fatimah et al., 2011; Luthans, 2002).

The managerial effort is not just about human and social capital; it is also about a

ABSTRACT

The aim of this paper is to examine the relationship between self-confidence, hope, optimism, and resilience as managerial efforts in building organization behaviour in Indonesia’s entrepreneurs. Major research questions pursued are what is the influence of managerial effects in building organizational behaviour? What is the most significant variable in building organizational behaviour in Indonesia’s entrepreneurs? The research was conducted from a sample of 148 entrepreneurs in Indonesia. The result of this research verified managerial efforts had a negative influence on building organizational behaviour of Indonesia’s entrepreneurs, and self-confidence was the most significant variable in building the organizational behaviour of Indonesia’s entrepreneurs.

Keywords: Entrepreneurs, hope, managerial effects, optimism, organizational behaviour, resilience, self-

confidence

Rano Kartono, Sasmoko, Yasinta Indrianti, Lasmy and Hendry Hartono

142 Pertanika J. Soc. Sci. & Hum. 28 (S1): 141 - 153 (2020)

positive psychological state of development in regards to self-confidence, optimism, hope, and resilience (Luthans, 2007). Meanwhile, organizational behaviour is a special field of study of the impact that individuals, groups, and organizational structure have on behaviour within organizations in order to apply such knowledge to improve organizational performance (Ivanko, 2013).

Further support for the unique contribution of hope, optimism, and resilience to performance and other desirable attitudinal outcomes can be found in Fredrickson’s (2001, 2003) broaden-and-build theory. Fredrickson’s research revealed that positivity broadens one’s spectrum of problem-solving skills, adaptive mechanisms, and thought-action repertoires while building inventories and buffers of intellectual, physical, social, and, most importantly, psychological resources such as optimism, resilience, and goal orientation (Youssef & Luthans, 2007).

However, for Indonesia’s entrepreneurs, there has been a substantial gap and debate between managerial effects in building organizational behaviour. The purpose of this paper is to investigate the relationship between managerial effects and building organizational behaviour of Indonesia’s entrepreneurs. The article proceeds in the following manner: First, we present a review of the literature regarding the managerial effects and organizational behaviour concept. Next, we reveal two hypotheses: managerial effects tend to have a positive influence on building organizational behaviour of Indonesian entrepreneurs,

and self-confidence is a significant variable on building organizational behaviour of Indonesian entrepreneurs, as revealed using representative data from 146 Indonesian entrepreneurs. The data collection method and research tools are explained. Finally, the findings and conclusions are discussed.

Literature Review

The purpose of this paper is to investigate the relationship among self-confidence, hope, optimism, and resilience (managerial efforts) and organizational behaviour of Indonesian entrepreneurs.

Managerial Efforts Concept. Managerial efforts include discussions about human capital as state of the art for an organization to achieve sustainable competi t ive advantage; social capital as the networks of relationships and friendships that are helpful to all business; and psychological capital as an individual’s positive psychological state of development that is characterized as follows: 1) confidence means being able to take on and put in the necessary effort to succeed at challenging tasks; 2) optimism is making a positive attribution about succeeding, now and in the future; 3) hope is persevering toward goals and, when necessary, redirecting paths to goals in order to succeed; 4) resiliency means the ability to sustain and bounce back from problems and adversity to attain success (Luthans, 2007).

Psychological capital (PsyCap) is a recent multidimensional construct, made up of four basic components: resilience, hope, optimism, and self-efficacy (Luthans &

Managerial Efforts in Building Organization Behaviour

143Pertanika J. Soc. Sci. & Hum. 28 (S1): 141 - 153 (2020)

Youssef, 2007). Such dimensions correspond to individual characteristics meeting POB main criteria, that is, being measurable, having the potential for development, and is related to performance. PsyCap is a higher-order “core construct,” unique and measurable, and is a more effective predictor of performance and work satisfaction than the individual variables composing it (Luthans, 2007). A significant negative relationship exists between the PsyCap construct and the perception of work-related stress symptoms; likewise, existing between PsyCap and intentions to resign and to find a new job are turnover indicators that should be contrasted through enhancing and developing positive resources (Luthans, 2007).

To measure managerial efforts , Allen and Hall (2007) considered how the managerial efforts might translate to observable activities of the management team. Further, an obvious measure of managerial effort is the amount of time start-up team principals typically devote to a firm that involves action by reinforcing the efficiency of labour and physical capital the firm employs to enhance managerial resources efficiency and increase profits for an organization.

Organizational Behaviour Concept. In any organization, organizational behaviour is defined as the nature and scope of activities to perform specific processes. In terms of the dynamics of the organization, business functions within an organization are classified into two main groups: 1) fundamental process (operational), which

is the provision of operational functions, production, or other work functions; 2) management process in which control functions are implemented, which is management, management, and leadership (Ivanko, 2013).

Luthans (2002) argued that the general perspective and relative attention in organizational behaviour had been characterized more by negativity than by positivity. For example, more attention has been given to negative as opposed to positive affectivity, stress, and burnout as opposed to eustress, resistance to change as opposed to acceptance/celebration of change, and the deficiencies, problems, and dysfunctions of managers and employees rather than their strengths and psychological capacities for development and performance improvement.

Furthermore, Luthans (2002) defined organizational behaviour as “the study and application of positively oriented human resource strengths and psychological capacities that can be measured, developed, and effectively managed for performance improvement in today’s workplace.” Besides positivity, to be included as a psychological resource capacity within this defined organizational framework, it must meet the following criteria: (a) the capacity must be theory- and research-based and validly measurable, and (b) the capacity must also be “state-like.”

Indonesian Entrepreneurs Study. The number of entrepreneurs in 2014 equals only 1.56% of the total population of Indonesia’s citizen (Pangestu et al., 2014); further,



the higher the rate of entrepreneurs in a country could intensify its economic growth, and it may also decrease unemployment and increase competition in Indonesia to generate economic growth.

According to the Cooperatives and Small and Medium Enterprise (UKM) Minister in 2018, the ratio of entrepreneurship is Indonesia currently reaches 3.01%. This is because the government of Indonesia actively develops the local economy by providing training, boosting production on small and medium enterprises (UKM), and provides people’s business credit (KUR) with low-interest rates.

MATERIALS AND METHODS

The object hypotheses tested using the quantitative method used multivariate analysis on surveyed data, to maintain the objective of this research. The research used statistics as analytical tools to reveal how the results relate to hypotheses. This research was empirical in nature, whereby a quantitative method was used to substantiate the relationships among the variables. The research itself was carried out in the period of March-April 2018. The study was conducted on a sample of 200 entrepreneurs in Indonesia through online questionnaires by using the 5-point Likert scales; in addition, from 200 questionnaires distributed, 158 (79%) completed questionnaires were returned to the author; however, 10 (0.05%) participants did not fulfil the requirement to be further analyzed, and 42 (21%) were not returned

to the author. Therefore, the effective data for this analysis are 148 respondents from 200 questionnaires.

There are 2 hypotheses and a 2 stages analysis in this research: firstly, self-confidence (X1), hope (X2), optimism (X3), and resilience (X4) of the variables and dimensions of managerial efforts (X) independently of organizational behaviour (Y). And second, the simultaneous analysis of the variables and dimensions of managerial efforts (X) against organizational behaviour (Y). The analysis is conducted in order to see the consistency of the most dominant variable or dimension in realizing organizational behaviour (Y) of entrepreneurs in Indonesia.

RESULTS AND DISCUSSIONS

Demographic Descriptive

Of the total 154 respondents, 60% were women and 40% were men. Viewed from age, 36.4% were under 25 years old, 26% were aged 25-40 years, 31.2% were aged 41–55 years, and 6.5% were over 55 years old (Figure 1).

Viewed from Figure 2 the level of education, 3.2% are elementary school graduates, 1.9% are junior high school graduates, 49.4% are senior high school graduates, 94.2% are bachelor graduates, and 5.8% are master’s graduates.

Meanwhi le , F igure 3 based on ownership, 90.8% are owners, 9.2% is the staff.



Calibration of Managerial Efforts in Building Organizational Behaviour of Indonesian Entrepreneurs (Y)

Instrument calibration of managerial efforts in building organizational behaviour entrepreneur Indonesia (Y) was conducted through 3 stages: firstly, content validity was conducted by the expert judgment that consisting of entrepreneurs and academics. Content validity results generate 4 dimensions, 8 indicators and 16 items; secondly, construct validity was conducted

Figure 1. Respondents by age Figure 2. Respondents by the level of education

Figure 3. Respondents by ownership

through orthogonal iteration approach, the sample of research instrument is 30 people, with r-criterion 0.361 at 5% significance level. The result of construct validity from the 16 items planned, turns out all the items are valid; and thirdly, the result was conducted from entrepreneurs in the reliability index of managerial efforts in establishing organizational behaviour entrepreneur Indonesia (Y) with Cronbach Alpha formula is 0.919 as shown in Table 1.

Data Normality Test of Managerial Efforts in Building Organizational Behaviour of Indonesian Entrepreneurs (Y)

The data normality test is conducted to test the distribution of exogenous variables data including self-confidence (X1), hope (X2), optimism (X3), and resilience (X4) and building organizational behaviour of Indonesian entrepreneur (Y) variable as an endogenous variable. Normality test is done by proportion estimation through Blom formula with P-P Plot approach. The P-P plot approach was taken because the sample size was < 200 persons. Based on the calculation



of Normal P-P Plot produce all endogenous and exogenous normal distributed variables, and the data distribution has no outlier. Likewise, when viewed from the Detrended Normal P-P Plot, the data distribution does

not represent sinus or cosine curves. So, it can be concluded that the distribution of all data variables is normally distributed. Graphically the results can be seen below in Figure 4.

Table 1Reliability statistics of managerial efforts

Cronbach’s Alpha N of Items0.919 16

Figure 4. P-P Plot of Dimension X1, X2, X3 and X4



Figure 4. Continued



Instrument

The instrument of managerial effects in building organizational behaviour in Indonesia’s entrepreneurs had been validated both in content and construct validity. The instrument consisted of four dimensions, eight indicators, and 16 items. The validity construct results show r-criterion 0.361 at a 5% significance level, and all items are valid.

Linearity Test Line Relationship between Exogenous Variable and Managerial Efforts in Building Organizational Behaviour of Indonesian Entrepreneurs (Y) as Endogenous Variable

The results of linearity test between exogenous variable include self-confidence (X1), hope (X2), optimism (X3), and Resilience (X4) with endogenous variable, managerial efforts in building organizational behaviour of Indonesia entrepreneur (Y) can be seen in Table 2.

Figure 4. Continued

Endogenous Variable:

Y : Variable of Positive Organizational Behaviours of Indonesia Entrepreneur

Exogenous Variables:

X1 : Dimension Self Confidence

X2 : Dimension Hope

X3 : Dimension Optimism

X4 : Dimension Resilience

Information:

No Linearity Y from X Deviation from Linearity

F from 11 Curve’s Estimation

Sig Remarks

F Sig.

1. Self confidence (X1) Positive organizational behaviour (Y)

15.317 0.000 403.557 0.000 Linear

2. Hope (X2) Positive organizational behaviour (Y)

1.829 0.076 - - Linear

3. Optimism (X3) Positive organizational behaviour (Y)

2.076 0.042 155.841 0.000 Linear

4. Resilience (X4) Positive organizational behaviour (Y)

2.563 0.016 126.679 0.000 Linear

Table 2 Linearity test line relationship between an exogenous variable and managerial efforts



Hypothesis Test Results

Hypothesis Test 1 Result: Managerial Effects (Self-confidence (X1), Hope (X2), Optimistic (X3) and Resilience (X4) has no significant influence in Building Organization Behaviour of Indonesian Entrepreneur (Y). For this hypothesis, each variable has been specified by 3 categories, which result shown in Table 3.

Based on the result, it can be concluded that Indonesian entrepreneur tends to have negative behaviour toward business developed; tend not to believe in their business but have a significant expectation with their business; tend to start a have high optimism with their business and have a good business resilience at moderate level with level of significantly of α<0.05.

Table 3 Hypothesis 1 test result

Variable Categories 95% Confidence interval for Mean

Analysis results

Lower bound

Upper bound

Positive organizational behaviour (Y)

NegativeSometimes +/-Positive

68.4790 70.9885 Entrepreneurs of Indonesia tend to have negative behaviour toward business developed significantly at α<0.05

Self-confidence (X1)

Not confidentSometimesConfident

21.3594 22.8614 Entrepreneurs of Indonesia tend not to believe in their business significantly at α <0.05

Hope (X2) No hopeSometimesHope

16.8326 17.4661 Entrepreneurs of Indonesia tend to have a significant expectation with their business at α <0,05

Optimism (X3) Not optimisticSometimesOptimism

17.2460 17.8320 Entrepreneurs of Indonesia tend to start to have a high optimism with their business significantly at α <0.05

Resilience (X4) Not confidentSometimesConfident

12.6759 13.1942 Entrepreneurs of Indonesia tend to have good business resilience significantly α<0,05



Hypothesis Test 2 Result: Self-Confidence (X1) is the Most Significant Variable in Building Organization Behaviour of Indonesian Entrepreneurs. For this hypothesis, 2 stages of analysis are conducted to be analyzed: Firstly, self-analysis of X variables and the dimension of X1, X2, X3 and X4 individually in building organizational behaviour of Indonesian Entrepreneurs (Y); and secondly, the joint analysis of the variables and dimension of X1, X2, X3 and X4 together against building organizational behaviour of Indonesia entrepreneurs (Y), which result as shown in Table 4.

Analysis of Exogenous Variables include Self Confidence (X1), Hope (X2), Optimism (X3), and Resilience (X4) With Endogenous Variables in Building Organizational Behaviour (Y)

The results of the analysis of exogenous variables include self-confidence (X1), hope (X2), optimism (X3), and resilience (X4) with endogenous variables in building organizational behaviour (Y) can be seen in Figure 2. From Figure 2, it can be explained that self-confidence (X1) is a dimension that most dominant exogenous variable determines the realization of organizational behaviour of Indonesian entrepreneurs (Y) after being influenced by the optimism dimension of the entrepreneur itself (X3).

No. Analysis Symbol X1Y X2Y X3Y X4Y1. X relationship with Y

in sampleryn 0.852 0.731 0.712 0.674

2. Variance determination

r2yn 0.725 0.531 0.503 0.451

3. The relative contribution of X in forming Y

r2yn (%) 72.5 53.1 50.3 45.1

4. X relationship with Y in population

t 20.089 13.198 12.484 11.255

5. Significance value Sig. 0.000 0.000 0.000 0.0006. The effect of X on Y

in the sampleŶ 1.424X1 2.895X2 3.047X3 3.265X4

7. The effect of X on Y in the population

FReg 403.557 174.191 155.841 126.679

8. Significance value Sig 0.000 0.000 0.000 0.0009. The greatest pure

relationshipr2

yn.m 0.911 0.824 0.833 0.775

10. A relatively pure donation of X with Y

r2yn.m (%) 83 67.9 69.4 60.1

Table 4 Hypothesis 2 test result



Ability to give 83% contribution in building positive organizational behaviour (Y). The conclusion of the analysis individually can be shown in Figure 5.

Influence Analysis Exogenous Variables include Self Confidence (X1), Hope (X2), Optimism (X3), and Resilience (X4) with Endogenous Variable Building Organizational Behaviour (Y)

This hypothesis test is done by a binary segmentation analysis approach called Classification and regression trees. In this analysis, the researchers set the pruning of depth by 2, parent 2, and child by 1, with significance level α <0.05. The result of the analysis proves that the dimension of self-confidence of entrepreneur Indonesia (X1) is the most dominant variable determining the formation of building organizational behaviour of Indonesian entrepreneurs (Y) where it is driven by ownership of motivation in achieving goals (X7). If the level of self-

confidence of Indonesian entrepreneurs is enhanced through 1 (one) priority program, then building organizational behaviour of Indonesian entrepreneurs (Y) will increase by 91.75 times from current condition. The summary can be seen in Figure 6 and Figure 7.

Indicators have motivation in achieving goals (X) that determine the dimension of Self Confidence of Indonesian entrepreneurs (X1) Impacting on its influence on positive organizational behaviour of Indonesian entrepreneurs (Y).

Based on the analysis above, it can be concluded that Indonesia’s entrepreneurs tend to exhibit negative behaviour toward business developed; tend not to believe in their business (but have a significant expectation with their business); tend to have high optimism with their business, and have a good business resilience at moderate level with level of significantly of α<0.05.

Figure 5. Analysis of exogenous variables with endogenous variables in building positive organizational behaviour (Y)



CONCLUSIONS

The research of the managerial efforts in building organizational behaviour of Indonesian entrepreneurs could be concluded by summarizing the main empirical findings. Firstly the managerial effect has negative influence behaviour on business, self-confidence, hope, optimism, and resilience to their business development. The test results of Indonesian entrepreneurs reveal an exciting finding, which is contrary

to some of the earlier research studies, i.e., managerial effects have a significant influence when building organizational behaviour. It can be inferred that managerial effects may cause an unclear strategy for Indonesia’s entrepreneurs, which leads to a negative influence on their business. Still, managerial effects are important to drive corporate strategies to build organization behaviour, although they do not directly influence Indonesia’s entrepreneurs when building organizational behaviour.

Figure 7. Motivation in achieving goals

Figure 6. Influence Analysis Exogenous variables with endogenous variable Building Positive Organizational behaviour (Y)



Secondly, Self-confidence is the most significant variable in building organizational behaviour of Indonesia’s entrepreneurs. The test result shows the significant difference among self-confidence (X1), optimism (X2), hope (X3), and resilience (X4) in managerial effects in building organizational behaviour of Indonesia’s entrepreneurs. Based on the results of the above research, it can be concluded that self-confidence (X1) is the most dominant dimension to determine the realization of building organizational behaviour of Indonesia’s entrepreneurs (Y), as evident in this study.

ACKNOWLEDGEMENT

The authors thank the entrepreneurs who took part in the online questionnaires and Bina Nusantara University for providing funds and full support for the accomplishment of this research paper.

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Fredrickson, B. L. (2003). The value of positive emotions. American Scientist, 97, 330-335.

Ivanko, S. (2013). Organizational behavior. Ljubljana, Slovenia: University of Ljubljana.

Luthans, F., & Youssef, C. M. (2007). Emerging positive organizational behaviour, Journal of Management, 33(3), 321-349.

Luthans, F. (2002). The need for and meaning of positive organizational behaviour. Journal of Organizational Behavior, 23(6), 695-706.

Luthans, F. (2007). Hope, optimism, and other business assets: Why “Psychological Capital” is so valuable to your company. Comportamento Organizational E Gestão, 13(1), 137-142.

Pangestu, G., Nicky, P. F., & Kumar, M. S. (2014). The factor that affects the entrepreneur’s growth in Bekasi region, Indonesia. International Journal of Scientific and Research Publication, 4(1), 1-8.

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