International Journal of Administrative Science & Organization, January 2014 Volume 21, Number 1 Bisnis & Birokrasi, Jurnal Ilmu Administrasi dan Organisasi

The Empowerment Model of Coastal Business Owners in Five Strategic Areas of National

AYAT TAUFIK AREVIN, MA’MUN SARMA, PANG S. ASNGARI AND PUDJI MULYONO

Department of Community Development and Communication Sciences IPB Post Graduate Program, Bogor Institute of Agriculture, Indonesia [email protected]

Abstract. This study examines the variables related and having influence on the success of the coastal homestay business owners. The total number of samples is 160 owners in five areas of KSPN (the Strategic Area of Indonesian National Tourism), namely: Pangandaran, Parangtritis, Karangasem, Pulau Untung Jawa, and Tanjung Lesung-UKNP. The hypotheses are: (1) individual and environmental characteristics influence the process of extensions, working-competence, and entrepreneurial behavior; (2) the extension process has real influence on working-competence and business empowerment; (3) working- competence positively influence entrepreneurial behavior and empowerment; (4) Entrepreneurial behavior and empowerment directly affect the success of business, and (5) Empowerment clearly affects business success. The model evaluation through bootstrapping technique gives a reference that: (1) the level of effectiveness of the extension process is influenced by age, cosmopolitan level, the role of community leaders, and cultural value systems; (2) the role of extension institutions and methods contributes to the increased working-competence and entrepreneurial behavior. (3) working-competence is reflected in the ability to handle reservations, receptions, and housekeeping; (4) the entrepreneurial behavior is reflected by transparency, the level of discipline, punctuality and tenacity; and (5) business success becomes more effective through entrepreneurial behavior than the level of empowerment.

Keywords: empowerment, homestay business, tourism extensions

Abstrak. Penelitian ini mengungkapkan peubah yang berhubungan dan mempengaruhi keberhasilan pemilik usaha pondok wisata (UPW). Total jumlah sampel 160 pemilik UPW di lima KSPN (Kawasan Strategis Pariwisata Nasional) yaitu: Pangandaran, Parangtritis, Karangasem, Pulau Untung Jawa, dan Tanjung Lesung-TNUK. Hipotesis yang diajukan adalah: (1) Karakteristik individu dan lingkungan berpengaruh nyata terhadap proses penyuluhan, kompetensi kerja, dan perilaku kewirausahaan; (2) Proses Penyuluhan berpengaruh nyata terhadap kompetensi kerja dan keberdayaan, namun tidak berpengaruh nyata terhadap perilaku kewirausahaan; (3) Kompetensi Kerja berpengaruh nyata positif terhadap perilaku kewirausahaan dan keberdayaan; (4) Perilaku kewirausahaan berpengaruh nyata positif terhadap keberhasilan usaha; dan (5) Keberdayaan berpengaruh nyata terhadap keberhasilan usaha. Teknik bootstrapping menghasilkan strategi bahwa: (1) tingkat efektivitas proses penyuluhan dipengaruhi usia, tingkat kosmopolitan, peran tokoh masyarakat, dan sistem nilai budaya; (2) Peran lembaga dan metode penyuluhan diupayakan berkontribusi pada peningkatan kompetensi kerja dan perilaku kewirausahaan. (3) Kompetensi kerja pemilik UPW tercermin dari kemampuan menangani reservasi, layanan resepsionis dan penyediaan layanan housekeeping; (4) Perilaku kewirausahaan direfleksikan oleh transparansi, tingkat disiplin, ketelitian dan ketekunan pemilik UPW; dan (5) Keberhasilan usaha lebih efektif melalui kompetensi kerja yang berkontribusi pada perilaku kewirausahaan, dibandingkan melalui tingkat keberdayaan.

Kata kunci: pemberdayaan, penyuluhan pariwisata, usaha pondok wisata

INTRODUCTION living and working in coastal area results in the pressures on natural resources and coastal area such as degradation Viewed from her geographical condition, Indonesia of coastal area, disposal of wastes to the sea, coastal is an archipelago with up to 81,000 km of coastal area erosion, coastal accretion and others. extended in more than 17,500 islands. Coastal area which The comparison of condition between coastal area is the border of land and sea must be managed and used or fishermen population in various areas and population more wisely to preserve the natural environment. Fact in other areas shows that they are relatively left behind shows that no less than 60% of Indonesian citizens live in economy and socio-culture, low in quality of human in coastal areas (Dahuri, 2002). The variety of activities resources since the majority of them only graduate or even they conducted in order to enhance their standard of life fail to graduate from elementary school, and vulnerable and community, deliberately or not, change the ecosystem in the function of Business Unit (Kusnadi, 2003). and natural resources. This, in turn, has an impact on the Likewise, economic development policies in Indonesia environmental condition in coastal area, particularly the have not supported marine sector since potentials and coastlines. The increase in the number of population business opportunities in this sector have not been 10 International Journal of Administrative Science & Organization, January 2014 Volume 21, Number 1 Bisnis & Birokrasi, Jurnal Ilmu Administrasi dan Organisasi comprehended by businessmen, bankers, government, others: (1) Original inhabitant ownership; (2) Traditional and other stakeholders (Dahuri, 2012). Fact shows that type of business; (3) Product segmentation is aimed at the majority of coastal area population still make their serving low income population and oriented to domestic living as traditional fishermen, unaware of tourism market; (4) Traditional or simple technology; (5) First business opportunity, or even if they have already known capital comes from household in limited amount results and started a business, they still lack of good management in listless capital accumulation; (6) The business is for capability. The policy in developing coastal tourism will fulfillment of living needs; and (7) Unprofessional and aid the efforts to save coastal areas from damage. Ethics uninventive management, therefore investment profit is in developing tourism says that tourism business must hard to calculate and future planning capability is only prioritize public interest, so that public can take part for short term. in managing resources and tourism objects or tourism Homestay business is still incapable to develop and destination areas. compete with other accommodation of the industry such Coastal areas have strategic prospect in the sector of as , villa, bungalow, cottage, or large-scale . nature-based tourism industry with a potential to be a The success rate of homestay business is still low due source for public welfare. Should the simplicity of life to low rate of power, limited working competence, and and traditional ways of coastal people be managed well, entrepreneurial behavior of coastal area population which they have priceless cultural investment value for tourism. is still incapable to fulfill the needs and wishes of tourists. Tourists with special interests find the daily life of This is parallel with the result of study by Indonesia traditional fisherman community as enjoyable as natural Ministry of Culture and Tourism (2003) showing the panorama of coastal area. It has been proven in such areas fact that public participation in development of tourism as Bali and Lombok where they choose to live with local destination areas in Indonesia is still low. This is due to: population and interact with them not just for a day or (1) no clear and detailed regulation on public involvement; two, but up to years. Local people houses rented to tourist (2) policies that only call for public participation without are known as home-stays. Many advanced and developing elaborating requirements, procedures and implementation countries encourage the development of homestay stages; and (3) lack of expertise in tourism sector. business concept as industry. This business This research endeavors to reveal individual and is capable to accommodate participation of people, so that environmental characteristic factors that influence the it plays an important role in the rural area development. processes of reconnaissance, working-competence and The expansion of this business is environment-friendly entrepreneurial behavior of homestay owner. These and based on public interest; it stimulates components of factors need to be understood and mastered by homestay rural micro-economy in hinterlands, provides job opening owners in order to have effect on the power and success and increases rural economic value; ecological continuity of homestay owners, both from social and economic such as capitalizing natural resources and coastal area aspects. The power of homestay owners is measured people to develop countryside; exposes rural culture through the level of participation, risk taking audacity, and landscape to outer world; decreases environment business planning capability, and innovative capability degradation, decentralizes national income and centralize in running the business. From economic aspect, the local resources in national economy; promotes and success of homestay owners is measured from the level increases farming and other local industries (Yahaya of income, number of clients, level of client loyalty, Ibrahim, 2010). expansion of market share, and competitive capability. A homestay is not a hotel, , or a kind of over The success of homestay owners leads up to the welfare commercialized cottage and villa. A homestay is a of homestay owner’s family and the image-building of personal/private house rented by guests living with the national tourism industry, so that the result of this research house owner in the comfort and security of a family. is expected to be a reference for empowerment model of Homestay accommodation is a term associated with a homestay owners through partnership pattern. private house with particular culture, interaction with The government has actually attempted to increase a host or a family, every space becomes public area tourism awareness, both for tourism service providers (Lynch and MacWhannell, 2000). Apart from authentic and users, through Visit Indonesia Year promotion experience and architectural of the host culture, homestay and tourism awareness campaign or reconnaissance can offer cultural adventure (Cole, 2007). Living in a through “Sapta Pesona” (seven enchantments) slogan. homestay, tourists have the opportunity to experience Inadequacy of information access and business network firsthand the life of local family, with comfort and causes the lack of capability of homestay owners in simplicity of local characteristics. interacting with guests. It is planted in the mind of foreign Luxury and sophisticated facilities are surely non- tourists that Indonesian people are socially friendly. They existent in a homestay accommodation. The success of get easily bored, uncomfortable and unwilling to prolong homestay business depends on the owner’s capability as their stay. This gradually affects the rate of income and host and operator, which is characteristics of small and continuity of homestay business. In the end, this business medium businesses. Presidential Decree No. 36 year can no longer guarantee increase of workers and business 2010 declares that homestays are prepared for Micro, owners welfare. Research questions to be answered in small and medium Business and Cooperative in tourism order to learn the potentials and success of homestay sector. Mulyanto (Riyanti, 2003) elaborates general owners in this research (with some variables effect to be characteristics of small and medium businesses, among seen) are: (1). What is the individual and environmental AREVIN, ET ALL, THE EMPOWERMENT MODEL OF COASTAL HOMESTAY 11

characteristic of homestay owners?, (2). How is the he realizes that he will gain benefit or fulfillment both extension/counseling process for homestay owners? (3). economically or non economically, and (2) he really What is the level of working competence, entrepreneurial knows the significance of the activity, such as: the behavior, power success of homestay owners? program, objectives, steps, process, other stages. every Based on these questions, this research is aimed at community needs to be awakened to the benefit for the disclosing: 1. Whether the success of business is connected self, family, or other community from their participation to the following variables: individual characteristics, in the development. environmental characteristics, tourism extension/ Competence is one’s basic characteristics that counseling process, working competence, entrepreneurial determines the best and effective working product in the behavior, and rate of power?. 2. How big is the effect of conformation to predetermined criteria in a particular each variable to the success of homestay owners? and 3. work or situation. Competence determines one’s behavior What is the empowerment model capable of increasing and performance (work product) in various situation and the success of homestay owners? role. Competence also determines the ways one behaves Every person has different individual characteristics, or thinks, adapts to various situations, and survives in biographical (individual) characteristics can be seen from a long term (Spencer and Spencer, 1993). Competence age, gender, marital status, amount of responsibilities, is the factor distinguishing workers with superior and expertise, and working time (Robins, 2001; and Siagian, average performances (Sallis, 1993). 2008). According to Mathias (2001), there are four An entrepreneur is an individual oriented to action and individual characteristics affecting one’s career, namely: is highly motivated to take risk in pursuing his goals. To interest, self identity, personality, and social background. accomplish his goals, an entrepreneur needs supportive Individual characteristics affect someone in providing attitude and behavior. Wijandi (1988) revealed that respond to stimuli accepted, and will alter behavior. entrepreneurial behavior includes three matters namely Lionberger and Gwin (1982) stated that internal knowledge, mental attitude and skill and wariness attitude factors that are sooner or later affecting adoption are age, which is the integration of knowledge and mental attitude educational level, socio-economic status, relationship elements towards the future. In general, thinking capacity pattern and cosmopolitanism, risk taking audacity, attitude is determined more by educational level, both formal towards changes, productive motivation, aspiration, and non formal, although there is no direct connection between knowledge/education and business spirit. In fatalism and diagnosism attribute (close confidence running a business, an entrepreneur must have some system). The study on individual characteristics effect adequate basic knowledge in order to success. to behavior change shows that individual characteristics Empowerment or potency derives from the word should absolutely be considered in extension programs. potent; according to Slamet (2003) to be potent has the In inventive diffusion research, individual characteristics same meaning with to know, understand, comprehend, such as socio-economic status, personality values, and be motivated, having chance to see opportunity, able to communicative behavior are known as variables that also capitalize on opportunity, having energy, able to cooperate, affect individual inventiveness (Rogers, 1989). know various alternatives, able to decide, unafraid to take Ife (1999) disclosed: “community development must risk, able to search for and catch information and able always seek to maximize participation, with the aim to act according to situation. The aim of empowerment being for everyone in the community to be actively according to Moeljanto (Sudantoko, 2010) is to increase involved in community processes and activities. The public capability in actualizing itself (empowerment). more people who are active participants, the more the Public capability to actualize and affect the course and ideals of community ownership and inclusive process implementation of a program is determined by the power will be realized” (Fatem, 2011). This concept asserts it possesses; so that empowerment is the central theme or that the requirement for success of public development the participative soul that is active and creative in nature. is by integrating as optimum as possible public social The success of a business can be measured from some environment component into empowerment process. The aspects, such as: (1) the profit gained by businessmen environment factor can influence homestay owners in their in a particular time span; (2) the success of a business behavior. Indeed, sometimes the influence of power is can be identified from the expansion of business scale; bigger than individual characteristics so that environment (3) the success of a business is identical to company power can change one’s behavior and orientation. development. This term is translated as a process of One of the measurements of extension success can increasing the quantity of company dimension; and (4) be seen from public participation level. An extension/ the company development is a process of increasing the counseling must be able to create a condition where number of employees, increasing the sales turnover and public are active and powerful in increasing their quality others (Haryadi, 1998). of life. The core of development extension goals is the emergence of public active participation in development RESEARCH METHODS program or movement to handle social problem they encounter (Slamet, 2009). This research employs a quantitative paradigm. The It is not easy to promote public participation since method used is surveys. According to Sevilla et al. (1993) every community has various characteristics and culture. a survey emphasizes more on determining information Asngari (2001) operationally clarified that basically about variables than information about individuals. people is willing to participate in an activity when: (1) Research data are collected simultaneously between 12 International Journal of Administrative Science & Organization, January 2014 Volume 21, Number 1 Bisnis & Birokrasi, Jurnal Ilmu Administrasi dan Organisasi variable X and Y. Variables tested are (1) Individual Next, the discriminant validity of AVE root is characteristics of homestay owner, (2) Environmental compared to the correlation between constructions; the characteristics of homestay owner, (3) The extension criteria that must be fulfilled is AVE root bigger than process given to homestay owner, (4) Working competence correlation between constructions. The constructions in rate of homestay owner, (5) Entrepreneurial behavior of the model are then estimated to discover whether it has homestay owner, (6) Empowerment rate of homestay fulfilled the criteria of discriminant validity. Reliability owner, and (7) Success rate of homestay owner. Based means the fulfillment of Cronbachs Alpha criteria more on the explanation of observation theory from previous than 0.60 and in the same manner Composite Reliability researchers, it can be summarized in Figure 1, explaining 0.60. Hypothesis Testing is when the coefficient (original about the factors affecting success of homestay owner. sample) tcalculation bigger than ttable1.96 and have This research is designed as a study on the causality positive value, it means one way influence (the bigger X relation, a change of one variable will generate a change than the higher Y), but when the coefficient has negative of other variable, by employing survey approach. The value, it means the opposite influence (if X becomes higher then Y becomes less). Then, model evaluation is research was conducted in five coastal areas in KSPN, conducted by comparing the value of R-Square. namely: (1) Pangandaran in Pangandaran District-West This research aims at demonstrating two research Java; (2) Parangtritis in Bantul District-Yogyakarta; (3) hypotheses namely: whether there is a connection between Karangasem in Karangasem District Bali; (4) Untung variable factors affecting the success of homestay owner Jawa Island in Kepulauan Seribu District-DKI Jakarta; business and how big is the influence value between and (5) Tanjung Lesung- Ujung Kulon National Park variable factors in connection with the success of homestay (UKNP) in Pandeglang District-Banten. business owner? The variable factors to be analyzed The number of research population is 241 persons, from the hypotheses are individual characteristics, i.e. homestay owners having less than 10 rooms. The environment characteristics, working competence, selection of 160 of homestay owners as samples was by entrepreneurial behavior, and empowerment of homestay employing the formula of Slovin (Sevilla et al. 1993) with owner. The hypotheses that can be formulated are as maximum error standard of 6%. Samples were collected follow: 1. Individual characteristics have positive actual using cluster simple random sampling: in Pangandaran influence to extension process, working competence, and 40 persons, Parangtritis 30 persons, Karangasem 37 entrepreneurial behavior. 2. Environment characteristics persons, Untung Jawa Island 32 persons, and Tanjung have positive actual influence to extension process, Lesung-UKNP 21 persons. The primary data were working competence, and entrepreneurial behavior. 3. gathered through filling questionnaire, interview and field Extension process has positive actual influence to working observation. Secondary data were obtained from offices, competence, entrepreneurial behavior, empowerment, organizations, and concerned groups. and success of business. 4. Working Competence has The effect of research variables was determined through positive actual influence to entrepreneurial behavior, structural equation analysis (Structural Equation Modeling) empowerment, and success of business by using SmartPLS software 2.0 M3 (Ghozali, 2008). The stages of analysis in this way are: Validity : Results of convergent validity test as loading factor and AVE RESULT AND DISCUSSION (Average variance extracted). If the result of the research shows loading factor more than 0.5 and output result shows At first this research formulated 7 variables and 34 AVE value more than 0.5 then the model is good. indicators (like in Figure 1). Through the measurement model of three step testing, 16 indicators were eliminated and removed from the model. The filtered output become - Age 18 representing indicators and all of them have loading Room House Service service keeping keeping Formal service colleague t service factor value more than 0.50. The result is as follow Customer & cooperation reservation reservation Education Receptionis Individual Training Characteristi Experience (Figure 2): (1) Individual characteristics construction cs Working X1 Experience (X1) was measured by using (X11- X15) indicators. Age Business capital Access to Access to Access to Access to Working Access to (X ) and Cosmopolitan level (X ) are able to reflect

Motivation technology market info 11 15 Level of competenc business network Cosmo- politanism e since both having loading factor more than 0.5. (2). Y1 Business environment characteristics construction (X2) The Role of extension Extension Empowerm was measured by using (X - X ) indicators. Role of institution Process ent 21 24 X3 Y3 Extension public figure (X22) and cultural value system (X23) are method Customer’s able to reflect since the loading factor is more than 0.5. Entreprene Loyalty urial Customer’s (3). Extension Process Construction (X3) was measured behavior Loyalty Y2 Business Customer’s by using (X31- X32) indicators. Extension implementation Family Support Loyalty Environment success The Role of institution (X ) and extension method (X ) indicators Community characteristi Y4 Market 31 32 Figure extension cs Cultural Value are able to reflect since both have loading factor over 0.5. System X2 Competing skills Market Opportunit (4). Homestay owner working competence construction y Focus Tenacity Integrity Accuracy Discipline Costumer

Punctuality (Y ) was measured by using (Y -Y ) indicators. Transparency Accountability 1 11 15 Reservation handlings (Y12), service (Y13) Figure 1. Factors Connected to and Affecting Success and housekeeping service facility (Y14) are able to reflect of Homestay Owner since all have loading factor more than 0.5. AREVIN, ET ALL, THE EMPOWERMENT MODEL OF COASTAL HOMESTAY 13

Receptioni Table 1. The Value of Validity, Reliability, and Reflec- st service Level of Reservatio House- Cosmopolit keeping tive Level of Each Variable - 0.661 n service service anism Individual 0.795 characteristi Level of 0.785 0.859 Vari- AVE √ AVE Compos- Cron- R- Commu- Redun- Cosmopolit cs anism 0.831 X1 able con- ite Reli- bachs Square nality dancy 0.177 Access to 0.000 Access to Access to Working technolog Market info business struction ability Alpha competenc y network 0.332 0.505 e 0.789 Y1 0.824 0.825 Indi- 0,563654 0,750769 0,031729 -0,303200 0,563654 0.561 0.590 Level of 0.260 vidual Extension Empower Cosmopolita - 0.729 Customer’s Competing nism process 0.365 ment Loyalty skills charac. X3 Y3 0.405 Extension 0.767 0.277 0.412 0.442 principles 0.870 0.857 0.123 Environ- 0,681526 0,825546 0,810217 0,536980 0,681526 Entreprene ment 0.334 0.162 Business urial 0.417 success charac. behavior Y4 The role of 0.783 Environment Y2 community 0.227 0.461 figure characteristi 0.415 Exten- 0,559375 0,747914 0,001629 -0,270002 0,276726 0,559375 0,092835 cs Cultural 0.675 value system X2 0.818 sion 0.866 Transparen 0.000 cy 0.779 0.898 process Tenacity Discipline Accuracy Working 0,661767 0,813491 0,854231 0,743877 0,560810 0,661767 0,085573 compe- Figure 2 The Construction Model and 18 Indicators as tence the Result of Outer Model Measurement Elimination Entre- 0,634350 0,796461 0,872918 0,809423 0,415378 0,634350 0,047225 pre- Homestay owner entrepreneurial behavior construction neurial Behavior (Y2) was measured by using (Y21-Y26) indicators. Transparency (Y ), discipline (Y ), punctuality (Y ), Empow- 0,661180 0,813130 0,854052 0,744444 0,441652 0,661180 0,206454 23 24 25 erment tenacity (Y27), and customer focus (Y28) are able to reflect since all have loading factor more than 0.5. Homestay Success 0,745559 0,863458 0,854228 0,658887 0,460566 0,745559 0,221188 owner empowerment construction (Y3) was measured by Explanation: using (Y31-Y34) indicators. Technology access capability (Y31), market information access (Y33), and business A good model is when the AVE (Average variance ex- network access (Y34) are able to reflect since all have tracted) for each construction value is more than 0.5. as loading factor more than 0.5. Homestay owner success a result of AVE output showing that AVE value > 0.5; it construction (Y4) was measured by using (Y41-Y45) means the model is good. Criteria: cronbachs alpha (CA) indicators. Customer loyalty (Y ), and competitiveness 43 > 0.60 and composite reliability (CR) > 0.60, if CA and (Y ) are able to reflect since both have loading factor 45 CR criteria fulfilled; it is Reliable. more than 0.5. Measurement of reflective multidimensional construction shows that the whole construction has Environment characteristics have composite reliability fulfilled the convergent validity test, namely AVE and (CR) value 0.810217 and cronbach alpha (CA) value communality more than 0.5 (Table 1), There are 5 rsquare of 0.536980; (2) Working Competence CR = 0.854231 value since individual characteristics and environment and CA = 0.743877; (3) Entrepreneurial behavior CR = characteristics construction are formed by the dimension 0.872918 and CA = 0.809423; (3) Empowerment CR = of construction underneath so that they have rsquare value 0.854052 and CA = 0.744444; and (4) Business Success beside in variable dependant extension process, working CR = 0.854228 and CA = 0.658887. The program output competence, entrepreneurial behavior, empowerment, shows that composite reliability value from each variable and success of homestay owner. above 0.5 thus it can be said that measurement employed Measurement of discriminant validity was based on in this research is reliable. the cross loading measurement and its construction or by The inner model is evaluated with rsquare for comparing AVE root for each construction with correlation dependent variable and coefficient value in path (β) for between construction and other construction in the model independent variable, then determine its significance (Table 1). The model has enough discriminant validity based on tcalculation value of each path. The output if AVE root for each construction is bigger than the values of SmartPLS software for structural model in correlation between construction with other construction this research (Table 1) are: rsquare for extension process in the model. From the results of the measurement, it is variable is 0.276726, working competence 0.560810, discovered that the comparison between AVE root value entrepreneurial behavior 0.415378, empowerment and coefficient correlation between variables above 0.441652, and business success 0.460566. all AVE root value is higher than the correlation value The value of rsquare confers a figure that individual between construction; then it can be concluded that characteristics and environment characteristics variables the indicator (measuring) employed in the research has towards extension process variable confers rsquare fulfilled the discriminant validity criteria. value 0.277 that means individual characteristics and The variable reliability was measured by cronbach’s environment characteristics variables can affect extension alpha and composite reliability, cronbach’s alpha measures process variable up to 27.7 %, while the rest 72.3 % lower limit of a variable reliability value, while composite is explained by other variable outside the research. reliability measures the actual value of a variable Working competence variable was affected by individual reliability. This research employs composite reliability characteristics variable, environment characteristics test to test consistency of variable internal (Table 1). variable, and extension process variable up to 56 % The output value of SmartPLS software connected to (1) with 44 % explained by other variable outside the 14 International Journal of Administrative Science & Organization, January 2014 Volume 21, Number 1 Bisnis & Birokrasi, Jurnal Ilmu Administrasi dan Organisasi research. Entrepreneurial behavior variable was affected coefficient value 0.025493. (8) Working Competence by individual characteristics variable, environment has positive actual influence to entrepreneurial behavior, characteristics variable, and extension process variable up verified by tcalculation 7.307694 and positive influence to 41.5 %, while 58.5 % explained by other variable outside coefficient value 0.412371. (9) Extension Process has the research. Empowerment variable can be explained positive actual influence to empowerment, verified by by working competence variable and entrepreneurial tcalculation 2.498929 and positive influence coefficient behavior variable up to 44.2 % and 55.8 % explained value 0.364952. (10) Working Competence has by other variable outside the research. Business success positive actual influence to empowerment, verified by variable can be explained by empowerment variable up tcalculation 5.614705 and positive influence coefficient to 46.1 % and 53.9 % explained by other variable outside value 0.358620. (11) Entrepreneurial behavior has the research. positive actual influence to business success, verified by Next, the model was tested with bootstrapping tcalculation 11.688042 and positive influence coefficient technique. This technique is capable of simulating much value 0.417455. (12) Empowerment has actual influence larger number of respondents. Research sample of 160 to business success, verified by tcalculation 10.707086 respondents can be simulated into 500 respondents. The and positive influence coefficient value 0.404854. results of SmartPLS 2.0 M3 software calculation shows Based on total effects (Mean, STDEV, T-Values) of that if tcalculation more than 1.96, it means variable has the results of calculation, all coefficient values of each actual influence and if coefficient has positive value, it connection are in positive level, which means all have means the influence is one way and if coefficient has positive influence, and all tcalculation value of each negative value, it means the influence is opposite. Figure variable connection bigger than ttable value (1.96), 3 shows verification of research hypotheses based on except between the extension process influencing the results of the measurement, that: (1). Individual entrepreneurial behavior and between entrepreneurial characteristics has positive actual influence to extension behavior to empowerment level, then those two cannot process, verified by tcalculation 2.607643 and positive become reference in considering empowerment strategy influence coefficient value 0.332047. (2) Environment decision through extension process characteristics has positive actual influence to extension The determining direction in making decision about the process, verified by tcalculation 2.986454 and positive empowerment strategy of homestay business owner refers influence coefficient value 0.333664. (2) Individual to the highest actual influence value and has positive value characteristics has positive actual influence to working from one construction to others, until business success competence, verified by tcalculation 4.261966 and has been accomplished. Next is the step to be considered positive influence coefficient value 0.177320. (3) based on the model produced with tcalculation value Environment characteristics has positive actual influence through bootstrapping technique, namely: to working competence, verified by tcalculation 7.437565 The empowerment channel to support the success of and positive influence coefficient value 0.259524. homestay owner is started from the input, derived from (4) Extension Process has positive actual influence to individual characteristics by considering productive working competence, verified by tcalculation 2.853623 age and high level of cosmopolitan, supported by the and positive influence coefficient value 0.505460. (5) business environment characteristics, derived from the Individual characteristics has positive actual influence to role of public figure and cultural value system that is still entrepreneurial behavior, verified by tcalculation 3.048598 maintained. These four reflecting indicators become the and positive influence coefficient value 0.123084. (6) consideration in increasing the effectiveness of extension Environment characteristics has positive actual influence process through increasing the role of institution and to entrepreneurial behavior, verified by tcalculation quality of the method and extension material, adjusted to 5.313325 and positive influence coefficient value interest of the client, in this case, the homestay owners. 0.227135. (7) Extension Process does not have positive The effectiveness of extension process must actual influence to entrepreneurial behavior, verified by have significant influence in increasing the working tcalculation 0.520255 (<1,96) and positive influence competence of homestay owners. Working competence of homestay owners as the result of the research is reflected

Receptioni Level of by the capability to handle reservation, receptionist cosmopolit 11, 91 st service anism Individual characteristi Reservatio House- keeping service and procurement of housekeeping service. These cs n service 41,46 service Level of 20, 64 X1 cosmopolit 40,13 51,33 three competence indicators at present is mastered by anism 4,26 Access to Access to Access to homestay owners through self-education. It will be Working technolog market info business y network 2, 61 2,85 competence Y1 51,21 33,83 more maximum if it is enriched by the competence with 58,44 Customer’s Competing 7, 44 5,62 skills Extension loyalty colleague and customer, also competence in providing institution 2, 80 Extension 2,50 Empowerm process 44,75 ent 61,38 X3 7,31 food and beverages service for guest (room-service). Extension 3, 11 3,05 Y3 method 10,71 Entreprene Business The provisioning of working-competence upgrade will 5, 20 urial success 2, 99 behavior 11,69 Y4 Y2 have immediate impact on the quality of entrepreneurial 5, 31 The role of community 17, 98 Environment 17,68 45,89 behavior of homestay owners, much more real than figure characteristi 37,46 cs Transparen 119,16 Cultural cy Tenacity X2 merely the extension process on entrepreneurial behavior, value system 43, 72 Discipline Accuracy whose result is less real. The entrepreneurial behavior of Figure 3. Empowerment Model of Homestay Owners homestay owners is reflected by transparency, disciplinary (result of inner model measurement evaluation) level, punctuality and tenacity. AREVIN, ET ALL, THE EMPOWERMENT MODEL OF COASTAL HOMESTAY 15

Homestay owners with the best working-competence model for homestay owner, namely: (a) Individual and and qualitative entrepreneurial behavior will have environmental characteristics become the consideration immediate impact to a high level of success of homestay in the extension process so as to influence the competence business owner. In other words, the empowerment of level and entrepreneurial behavior. In the case of the homestay owner will have immediate impact on their low role of extension institution, the homestay owners business success. rely on the limited competence and entrepreneurial Other alternative is working-competence procurement behavior in running the homestay business. It is proven must have immediate impact to homestay owner’s from some indicators that both working-competence empowerment since a high level of empowerment will and entrepreneurial behavior cannot reflect each other have immediate impact on homestay owner’s business significantly. The empowerment of homestay owners is success. hampered by the procurement of capital, should this be The contribution of the research results to the overcome the success of business will get stronger. development of tourism in Indonesia, particularly In building homestay owner’s empowerment strategy, in developing tourism business in coastal areas is and in planning public empowerment through extension the answers to the problems discovered in the study program, the age, educational background, business conducted by the Ministry of Tourism and Culture, that: motivation, and cosmopolitan level must be considered (1) public participation in developing tourist destination to make it more effective. The materials for extension area in Indonesia can be increased through an extension program must be technical, instead of theoretical or just process that is capable to improve the needs for an information of government policy; yet it must also be working-competence and entrepreneurial skill; (2) social capable to influence the competence level of homestay involvement in the development must be able to invite owner in operating his business. participation of stakeholders, like the ability to access The paradigm must be changed from top-down information from central and local government institution tourism extension so far into bottom-up extension which as the keeper of policy and regulation; (3) Universities is observing and accommodating the aspiration of public must strengthen the skill of making business design, interest and needs based on the problems encountered management method; and (4) financial institutions both in running the business. Tourism business community, banking and cooperatives must help in financial matters. particularly homestay business owners, needs an extension that can increase their working-competence, CONCLUSION improve their entrepreneurial behavior, and get them the

opportunity for capital grant, as well as give the way to The factors influencing the success of homestay develop it. owners are: (a) individual characteristics, reflected by Tourism counselors must have a good command age and cosmopolitan level; (b) business environment of extension materials that can increase the working- characteristics, reflected by role of public figure and cultural value system; (c) extension process, reflected competence and change entrepreneurial behavior to a by the role of extension institution and principles; better direction; in the advances of technology at present, (d) working-competence, reflected by: reservation in fact homestay owners already have a relatively high handling, receptionist service and housekeeping service level of empowerment, but the behavior has not been in procurement; (e) entrepreneurial behavior, reflected compliance to tourist needs. Simple homestay business by transparency, discipline, punctuality, and tenacity; management materials must be attempted so as to make it (f) empowerment, reflected by the ability to access easier to be absorbed and understood by homestay owners, technology, access market information, and access particularly on licensing administration and report, so if business network; and (g) business success, reflected one day local government draw a tax, an orderly financial by: customer loyalty, and competitiveness. The administration will ease the calculation process. factors with immediate impact, namely: (a) individual Government must make a policy on the procurement characteristics, environment characteristics, extension of an integrated extension program concerning the process and working competence have immediate partnership pattern that involves extension institutions impact to entrepreneurial behavior; (b) extension process with tourism background such as Tourism Institute, and and working competence have immediate impact to concerned banking institutions; they must empower the the empowerment of homestay owners; (c) working- business owners financially by involving public figure, competence of homestay owners does not directly in order to maintain positive cultural value system for connected to business success, but it will take a mediation tourism development, such as local wisdom and the habit through the empowerment and entrepreneurial behavior of cooperation among coastal people. Affection for art improvement of homestay owner. and culture is also a capital that presents a tourism with This research produced a model to increase the success more community-based characteristic. of homestay owners. It reveals that age, cosmopolitan It is time for banking institutions to ‘glance’ at the level, role of public figure, and cultural value system chance of investing capital by giving aid to working units become a consideration in the extension process: to in tourism sector, particularly homestay business, since increase working-competence and entrepreneurial it has a good prospect in the future with the existing behavior, to increase more empowerment and success support for development plan from both local and central of homestay owner business. The empowerment government such as in KSPN. 16 International Journal of Administrative Science & Organization, January 2014 Volume 21, Number 1 Bisnis & Birokrasi, Jurnal Ilmu Administrasi dan Organisasi

REFERENCES Mathias, R.I. and Jackson, J.H. (2001). Manajemen Sumber Daya Manusia. Translated by Jimmy Sadeli Arevin, A. T. 2014. Pemberdayaan Pemilik Usaha Pondok and Bayu Prawira Hie. Jakarta (ID): Penerbit PT Wisata Pesisir di Lima Kawasan Strategis Pariwisata Salemba Empat. Nasional. A Dissertation, Graduate Program of IPB, Riyanti, B.P.D. 2003. Kewirausahaan dari Sudut Pandang Bogor. Psikologi Kepribadian. Jakarta: Grasindo Asngari, P. S. 2001. “Peran Agen Pembaharuan/Penyuluh Robbins. 2001. Perilaku Organisasi: Konsep, Kontroversi, dalam Usaha Memberdayakan (Empowerment) Aplikasi. Volume I. translated by: Pujaatmaka, H. and Sumber Daya Manusia Pengelola Agribisnis”. An Molan, B. Jakarta (ID): Penerbit Prenhalindo. Oration in the Studium Generale of Tenured Professor Rogers, E. M. 1989. (A) Communication of Innovation: of Socio-Economic Sciences at Bogor Institute of A Cross Cultural Approach. New York: Mc. Millan Agriculture (IPB). Bogor (ID): IPB. Publ. Co. Bird, M. J. 1996. Entrepreneurial Behavior. Singapore Sallis, E. 1993. Total Quality Management in Education, (SG): Irwin Mc Graw Hill. Kogan Page Ltd, 120 Pentonville Road London N1 Cole, S. (2007). Beyond Authenticity and Co modification. 9JN UK Annals of Tourism Research, 34(4), 943-960. Sevilla, C.G., J.A. Ochave, T.G. Punsalan, B.P. Regala, Dahuri, R. 2012. Prospek Investasi dan Bisnis di and G.G. Uriarte. 1993. Pengantar Metode Penelitian. Sektor Kelautan. Available at: http://rokhmindahuri. info/2012/10/16/prospek-investasi-dan-bisnis-di- Jakarta (ID): Universitas Indonesia Pres sektor-kelautan/. Siagian, SP. 2008. Manajemen Sumber Daya Manusia. Fatem, Agustinus. 2011. Policies in Village Development: Jakarta (ID): Penerbit Bumi Aksara. Learning from Community Empowerment and Slamet, M. 2003. Membentuk Pola Perilaku Manusia Participation in Jayapura. Journal of Administrative Pembangunan. Ida Yustina and Adjat Sudradjat (Eds). Sciences and Organization : Bisnis & Birokrasi, Vol 18 Bogor (ID): IPB Press. No. 2, may 2011, pp. 108 – 121. Soekadidjo, R.G. 1997. Anatomi Pariwisata. Jakarta Ghozali, I. 2008. Structural Equation Modeling. Metode (ID): PT Gramedia Pustaka Utama. Alternatif dengan Bantuan Partial Least Square (PLS). Soekartawi. 1988. Prinsip Dasar Komunikasi Pertanian. Semarang (ID): Badan Penerbit UNDIP. Jakarta (ID): UI-Press. Haris, C., A. M. Intosh and K. Lewis. “The Commercial Spencer, L.M and S.M Spencer. 1993. Competence at Home Enterprise: Labour with Love.” Original Work: Models for Superior Performance. New York Scientific Paper. 55(4): 391-402 (US): John Wiley & Sons, Inc. Haryadi, D., E. E. Chotim, and Maspiyati. 1998. Tahap Sudantoko, D. 2010. Pemberdayaan Industri Batik Skala Perkembangan Usaha Kecil: Dinamika dan Peta Potensi Kecil di Jawa Tengah (Studi Kasus di Kabupaten dan Pertumbuhan. Bandung [ID]: Yayasan AKATIGA Kota Pekalongan). Dissertation, Graduate Program of Ibrahim, Y., and ARA Razzaq. Homestay Program and Universitas Diponegoro, Semarang. Rural Community Development in Malaysia. Available The Government of the Republic of Indonesia. 2001. at: http://www.ritsumei.ac.jp/acd/re/k-rsc/hss/book/ Government Regulation No. 50 of 2011 concerning pdf/vol02_03.pdf RIPPARNAS of 2010–2025. Jakarta (ID): State Ife, J. 2002. Community Development. Ed.2th. French Secretariat. Forest. New South Wales [AU]: Pearson Education. The Ministry of Culture and Tourism. 2010. The Jain, N., Rinchen W., and R. Jackson. 2003. An Assessment Regulation of the Minister of Culture and Tourism No: of CBT and Homestay Sites in Spiti District, Himachal PM.86/HK.501/ 2010 concerning the Procedures of Pradesh. Supported by: United Nations Educational, Registering Accommodation Business. Jakarta (ID). Scientific and Cultural Organization (UNESCO). The President of the Republic of Indonesia. 2010. Kayat, K. 2007. “Customer Orientation among Rural Homestay Operators in Malaysia.” ASEAN Journal on Presidential Decree No. 36 of 2010 concerning Capital Hospitality and Tourism. 6(2):65-78. Investment. Jakarta (ID): State Secretariat. Kusnadi. 2003. Akar Kemiskinan Nelayan. Yogyakarta: Tzschentke, N. David K, and Paul AL. 2004. “Reasons LKiS. for Going Green in Serviced Accommodation Lasmahadi, A. 2002. “Sistem Manajemen Sumber Daya Establishments.” International Journal of Manusia Berbasis Kompetensi.” Journal of Psikologi. Contemporary Hospitality Management. ABI/ Available at: http://www.sdm.go.id/ INFORM Global. 16(2):116-121. Lionberger H. F., Gwin H. 1982. Communication Yahaya Ibrahim (2004). “Homestay Programme in Strategies: A Guide for Agricultural Change Agents. Malaysia”. ASEAN Journal on Hospitality and Illinois (US): The Interstate Printers & Publisher Inc. Tourism. January: 3(1), 65-75. Lynch, P A. 1999. “Host Attitudes towards Guests in the Yahaya Ibrahim and A.R. A Razzaq. 2010. Homestay Homestay Sector, Tourism and Hospitality Research.” Program and Rural Community Development in The Surrey Quarterly Review. 1(2):119-144. Malaysia. Available at: http://www.ritsumei.ac.jp/acd/ Lynch, P A. 2000. “Networking in the Homestay Sector.” re/k-rsc/hss/book/pdf/vol02_03.pdf The Service Industries Journal. ABI/INFORM Global. Wijandi. 1988. Pengantar Kewirausahaan. Bandung (ID): 20(3):95-100. Sinar Baru.