The Influence of Sharing Economy in Establishing Opportunities to Increase Well-being of Go-Jek Driver for Company Improvement
Toward Marketplace
(Case study in South Tangerang)
By:
Najmah Riajani Garniera 1113081100013 International Management
MANAGEMENT DEPARTMENT INTERNATIONAL PROGRAM
FACULTY OF ECONOMIC AND BUSINESS
STATE ISLAMIC UNIVERSITY SYARIF HIDAYATULLAH JAKARTA
1438 H/2017
viii CURRICULUM VITAE
Personal Identities
Name : Najmah Riajani Garniera
Gender : Female
Place of Birth : Karawang Date of Birth : May 13th 1995
Address : Perumahan Telaga Harapan blok H12/8 Cikarang Barat, Kab. Bekasi – West Java
Phone/Mobile : 0813 8021 3200
E-mail Address : [email protected]
Formal Education
College : UIN Syarif Hidayatullah Jakarta
University of Applied Sciences Würzburg-Schweinfurt Senior High School : SMA Al-Muslim Tambun - Bekasi
Junior High School : SMPN 1 Rawamerta - Karawang Elementary School : SDN Karang Baru 02 - Cikarang
vi ABSTRACT
The purpose of this research is to analyze the influence of sharing economy (People, Product & Process and Partnerships) in establishing opportunity to increase wellbeing of Gojek driver in South Tangerang. Sharing economy is the emerging issue nowadays and the present research was conducted to evaluate the wellbeing of driver via employee satisfaction. The data that have been used for this research are primary data and it has been collected from 100 respondents who have are the driver of Gojek. The technique sampling used in this research is purposive sampling. The data obtained are further analyzed using multiple linier regressions on SPSS 16.0 for windows. The result shows that people, product & process, and partnerships have partially influence the wellbeing. Based on analysis, all independent variable such as that people, product & process, and partnerships have simultaneous influenced the dependent variable which is wellbeing. The result coefficient of determination shows that 39% as the value of dependent variable can be explained by the independent variables. While the rest of dependent variable value is 61% that can be explained by the other variables that have not been included in this research
Keywords: sharing economy, people , product & process innovation, partnerships and wellbeing.
vii ABSTRAK
Tujuan dari penelitian ini adalah untuk menganalisa pengaruh dari Ekonomi berbagi (kapasitas manusia, produk & proses, dan kemitraan) dalam meningkatkan kesejahteraan dari pengemudi Gojek. Ekonomi berbagi adalah isu yang sedang berkembang saat ini dan penelitian saat ini dilakukan untuk mengevaluasi kesejahteraan pengemudi melalui kepuasan kerja karyawan. Data yang telah digunakan dalam penelitian ini adalah data primer dan data tersebut telah dikumpulkan dari 100 responden yang telah menjadi pengemudi Gojek. Teknik pengambilan sampel yang digunakan dalam penelitian ini adalah metode purposive sampling. Data yang telah didapatkan, selanjutnya dianalisa menggunakan regresi linier berganda pada SPSS 16.0. Hasil dari penelitian ini menjunjukkan bahwa dari kapasitas manusia, produk & proses, dan kemitraansecara parsial dapat mempengaruhi kesejahteraan. Berdasarkan dari hasil analisa, semua variabel seperti dari kapasitas manusia, produk & proses, dan kemitraan secara simultan mempengaruhi variabel dependen yaity kesejahteraan. Hasil dari koefisien determinasi menunjukkan bahwa 39% sebagai nilai dari variabel dependen yang bisa dijelaskan oleh variabel independen. Sementara, sisa dari nilai variabel dependen adalah 61 % yang bisa dijelaskan oleh variabel lain yang tidak dimasukkan kedalam penelitian ini.
Kata kunci: ekonomi berbagi, kapasitas manusia, inovasi produk & proses, kemitraan dan kesejahteraan.
viii PREFACE
Assalammu’alaikum Wr. Wb.
All praise to Allah SWT, the Most Gracious and the Most Merciful, the Cherisher and Sustainer of the worlds; who always gives the writer all the best of this life and there is no doubt about it. Shalawat and Salaam to the Prophet Muhammad SAW and his family.
With blessing and mercy from Allah SWT, the writer can complete this thesis to fulfill one of the requirements in accomplishing bachelor degree.
The writer is also well-aware that without advice and support from various parties, this thesis will not be realized properly. Therefore, the writer would like to take his opportunity to express his deep and sincere gratitude to the following:
1. God almighty Allah SWT because without his guidance, I will be nothing and misguided.
2. Beloved parents, my dad Ir. Kamsul Hidayat and my mom Eli Amalia, S.Pd who have given all their efforts morally and material to my college study.
For also being such a great parents that always give me support and advice to finish this thesis. Thank you for your love and prayers that never end. All this efforts is dedicated to you my mom and dad. May Allah SWT always give His blessing for you both.
3. Thanks to my Husband Aldila Bachtawar Zardari., ST., MBA who always support and help me anytime.
4. Dr. M. Arief Mufraini, Lc., Msi as the Dean of Economic and Business Faculty.
ix 5. Dr. Muniaty Aisyah Ir, MM., as the thesis supervisor. Thank you so much for your time and kindness to help me in finishing this thesis. By her advice, direction, and guidance I can write this thesis properly.
6. My beloved sister Levina Deandra, who always cheer me up.
7. All the lectures who have taught me many things patiently. Thank you for all the knowledge that will lead me to a better future. May your charity and deeds are always recorded by Allah SWT.
8. All the staffs in Economic and Business Faculty who always helps me to provide me all the procedures I need in making this thesis.
9. All my dear friends in Management International Program 2013.
The writer realizes that this thesis is still far from perfection due to limit knowledge of the writer. All the suggestions and constructive criticism are welcomed in order to make this thesis better. Hope, this thesis will be useful for any researcher or reader. May Allah SWT always bless every step in our life.
Wassalamu’alaikum Wr. Wb.
Tangerang, Mei 2017 The Writer
Najmah Riajani Garniera
x TABLE OF CONTENTS
Curriculum Vitae ... v
Abstract ... vi
Abstrak ... vii
Preface ... viii
Table of Contents ... x
List of Tables ... xii
List of Figures ... xv
List of Appendix ... xvi
Chapter I INTRODUCTION A. Background ... 1
B. Problem Formulation ... 10
C. Research Question ... 10
D. Research Advantages ... 11
Chapter II LITERATURE REVIEW A. Variables Theory ... 12
1. Transportation ... 12
2. City Transportation System ... 12
3. Factors Influencing the Selection of Transportation Mode ... 13
4. Marketing …. ... 14
a. Definiton of Marketing ………. 14
5. Service Marketing ………...……….. 15
6. Categories of Service Mix ... 16
7. Service Marketing MIx ... 17
xi
8. Consumer-Oriented Marketing ... 18
9. Service Employee ... 20
10. Sharing Economy ... 23
5. Access to Essential Goods and Services ... 24
6. Dimension of Access to Essential Goods and Services ... 25
a. People ... 25
b. Products and Process ... 28
c. Partnership ... 31
7. Well Being ... 34
8. Dimension of Well Being ... 35
B. Previous Research ... 38
C. Theory of Framework ... 41
D. Hypothesis ... 43
Chapter III RESEARCH METODOLOGY A. Scope of Research ... 44
B. Determination of Sample Method ... 44
1. Population ... 44
2. Sample ... 44
C. Data Collection Method ... 46
1. Primary Data ... 46
2. Secondary Data ... 47
D. Methods of Data Analysis ... 47
1. Data Quality Test ... 47
a. Validity Test ... 47
b. Reliability Test ... 48
xii
2. Classic Assumption Test ... 49
a. Normality ... 49
b. Multicollinearity ... 49
c. Heteroscedasticity ... 50
3. Hypothesis Test ... 51
a. Simulant Test ... 51
b. Partial Test ... 51
4. Multiple Linear Regression ... 52
5. Coefficient of Determination ... 53
Chapter IV FINDING AND ANALYSIS A. General Description of Research Objects ... 57
1. History of Gojek ... 57
B. Result and Discussion ... 58
1. Validity and Reliability Test ... 58
2. Characteristic of Respondents ... 63
3. Descriptive Analysis ... 65
4. Classic Assumption Test ... 73
5. Hypothesis Test ... 79
6. Multiple Linier Regression Test ... 82
7. Determinant Coefficient (Adjusted R2) ... 84
Chapter V CONCLUSION AND SUGGESTION A. Conclusion ... 86
B. Suggestion ... 86
C. The Limits of This Research ... 89
xiii REFERENCES ... 88 APPENDIX ... 92
xiv LIST OF TABLES
No. Description
1.1 Population growth rate of South Tangerang ... 4
1.2 Commuter percentage by mode of transportation and residence ... 5
1.3 Development of Vehicle in South Tangerang ... 7
1.4 Various Type of Online Transportation Service ... 8
2.1 Overview previous research ... 38
3.1 Likert scale ... 47
3.2 Operational research variable ... 55
4.1 Tryout result of validity test ... 59
4.2 Tryout results of reliability variable people ... 61
4.3 Tryout results of reliability variable Product and Process ... 61
4.4 Tryout results of reliability variable Partnership ... 62
4.5 Tryout results of reliability variable wellbeing ... 63
4.6 Gender of Respondent ... 64
4.7 Age of Respondent ... 64
4.8 Education of Respondent ... 65
4.9 Description of people ... 66
4.11 Indicator of people ... 67
4.12 Description of Product & Process ... 68
4.13 Indicator of Product & Process ... 69
4.14 Description of Partnership ... 70
4.15 Indicator of Partnership ... 71
4.16 Description of wellbeing ... 72
xv
4.17 Indicator of well being ... 73
4.18 One sample Kolmogorov – Smirnov ... 74
4.19 The result of multicollinearity ... 76
4.20 The result of Glejser test ... 78
4.21 Result of F-test ... 79
4.22 Result of T-test ... 81
4.23 The result of multiple linier regressions ... 82
4.24 Result of determinant coefficient ... 85
xvi LIST OF FIGURES
No. Description
2.1 Modern Customer-Oriented Organization Chart ... 19
2.2 The Cycle of Success ... 21
2.3 The Links in The Service-Profit Chain ... 22
2.4 Inclusive Sharing Economy Framework ... 25
2.3. Conceptual Thinking ... 42
4.1 Chart of people ... 67
4.2 Chart of Product and Process ... 69
4.3 Chart of Partnership ... 71
4.4 Chart of wellbeing ... 73
4.5 The result of P P-Plot of regression standardized residual ... 75
4.6 Scatterplot of Heteroscedasticity ... 77
xvii LIST OF APPENDIX
No. Description
Appendix 1 Questionnaire ... 84
Appendix 2 Answer of Questionnaire ... 88
Appendix 3 Validity and Reliability Tests ... 94
Appendix 4 Characteristics of Respondents ... 96
Appendix 5 Descriptive Analysis ... 98
Appendix 6 Classic Assumption Test and Multiple Linier Regressions ... 104
1 CHAPTER I
INTRODUCTION A. Background
Indonesia has huge potential in the transportation industry market, especially in Jakarta. The importance of transportation is reflected by the increasing demand for transportation services for the mobility of people and goods expedition. However, an adequate public transportation service has not been fully realized. Traffic congestion is still a major problem in Jakarta because of the infrastructure improvements that does not balanced by the increase in the number of vehicles crossing the streets of the capital which has limited space. Several kinds of effort has been done by government such as:
accelerating development of the mass transportation, building fly over and under-pass, adjustment between work hours and student hours, improvements of transportation facilities as well as creating regulations like three-in-one area.
A mass transportation (Trans Jakarta) and Commuter Line are currently the only transportation service which is provided by the government of DKI Jakarta. Yet, Trans Jakarta still needs a lot of improvement due to the schedule of departure and arrival from each station. (Source:Statistik daerah provinsi DKI Jakarta 2015). Another public transportation which is still under construction are MRT (Metro rail transit) and LRT (Light rail transit).
However, these services could reduce the congestion in Jakarta. Yet, for the person who does not have access to the station still needs transport like bus.
Thus, there is a breakthrough raised by young entrepreneurs who develop new
2 innovations in the provision of online transport services for easy access from one point to another easily.
The sphere of transportation services in Indonesia featuring one of the greatest opportunities in Southeast Asia. Therefore, online transportation services in Indonesia such as GO-JEK, Uber and Grab probably already familiar among people in Indonesia. This is also supported by technological development of a digital technology which allowed people to find the nearest driver so that each driver has the same opportunity in the search of passenger.
The concept behind those applications is a concept which is becoming a trend in many parts of the world, including in Indonesia, namely the concept of sharing economy. The sharing economy is an economic model based on sharing, swapping, trading, or renting products and services in a way that enables access over ownership. (Rachel Botsman: 2010).
In order to support the success of this model, digital technology is pivotal to the growing concept of sharing economy, to enable scale and enhance economic impact. A number of sharing platforms have emerged which enable individuals to share goods and services like cars, houses, household products and services. The proliferation of mobile devices has heralded a digital revolution to serve as a catalyst of growth.
The sharing economy is quickly paving new roads in the automotive industry, establishing a web of transportation options. It holds a great promise as a generator of economic opportunity and enabler of more affordable, convenient access to goods and services for the people who need the most.
3 However, achieving a more meaningful uptake of collaborative marketplaces among lower-income populations requires targeted and inclusive business strategies that mitigate barriers to entry and address some of their unintended risks. Such strategies would not only bring benefits to society, they would increase the quality of live for the people who share.
The appeal of the sharing economy lies in the fact that the sharing platforms create a win-win situation for all the stakeholders. The benefits of the sharing economy are manifold - including on-demand access to goods and services, efficient utilization of unused inventory of assets across industries, leading to a multiplier effect such as increased employment, consumerism, digital literacy and the rise of micro-entrepreneurship. (Gururaj Ravi, 2015)
In the Indonesian context, the appeal of the sharing economy as a concept lies in the fact that personal asset ownership (such as cars) is comparatively lower. The sharing economy, by its very nature emphasizes on the re-use of assets rather than absolute ownership, which helps individuals to experience the benefits of these assets without really owning them. On the supply side, the sharing economy is transforming the work force and is making the road to entrepreneurship more accessible for many people.
In Indonesia, the biggest impact of the sharing economy has been felt in the transportation space, where the emergence of these platforms has made it convenient for any individual to commute from one point to another.
4 The concept has also become very relevant to industries like accommodation, grocery and food, household service and healthcare.it is also likely emerge as a growth driver for other specialized and nice service like medical appointment, cleaning service, auto care, beauty care, and other service sector expansion among others. (www.markplusinstitute.com)
Table 1.1
Growth of population in Tangerang City 2015 No District
Total Population (Inhabitant)
2011 2012 2013 2014
1 Ciledug 136.655 147.023 161.604 169.426
2 Larangan 151.879 163.901 176.229 182.732
3 Karang tengah 109.931 118.473 121.627 130.509
4 Cipondoh 216.346 227.396 242.548 256.810
5 Pinang 148.222 166.172 174.655 182.357
6 South Tangerang 137.524 157.343 162.192 167.463
7 Karawaci 156.465 172.959 276.556 179.240
8 Jatiwung 127.824 119.929 120.767 121.045
9 Cibodas 111.249 144.422 148.032 150.889
10 Periuk 119.249 132.089 136.420 140.076
11 Batuceper 95.538 92.351 95.162 97.532
12 Neglasari 82.607 105.585 108.908 111.718
13 Benda 77.541 85.522 89.119 923.336
Total 1.652.590 1.847.341 1.918.556 1.982.132 (Source: Statistics of Tangerang City 2013-2015)
5 Based on BPS data Tangerang city, the population of the city of Tangerang in the period of 2011-2014 has increased from 1.65259 million inhabitants (2011) to 1,982,132 inhabitants (2014). The average population growth of the city of Tangerang in the period 2011-2014 is 3.28%.
The survey also show that population in South Tangerang density increased in the period years 2011-2014, from 100 inhabitants / ha (20) to 120 inhabitants / ha (2013). Districts with the highest population density today is the District Prohibition, namely 194 soul / ha (in 2013), while the districts with the lowest population density is Subdistrict Neglasari, that is 69 people / ha (2013).
Tabel 1.2
Commuter Jabodetabek in DKI Jakarta 2014
Residence
Location of activities South
Jakarta
East Jakarta
Central Jakarta
West Jakarta
North Jakarta
DKI Jakarta
South Jakarta 2,02% 4,10% 1,64% 0,85% 8,60%
East Jakarta 4,66% 4,07% 1,42% 2,92% 13,07%
Central Jakarta 1,60% 0,72% 1,49% 1,05% 4,89%
West Jakarta 2,32% 0,40% 4,06% 3,66% 10,43%
North Jakarta 0,76% 1,00% 2,77% 1,59% 6,11%
Kab. Bogor 1,84% 0,84% 1,98% 0,72% 0,27% 5,64%
Bogor 0,30% 0,24% 0,34% 0,22% 4,00% 1,15%
Depok 6,47% 2,05% 2,07% 0,63% 0,47% 11,69%
Kab. Bekasi 0,14% 2,60% 0,84% 0,32% 0,91% 4,81%
Bekasi 2,94% 6,35% 3,04% 0,96% 1,51% 14,80%
Kab.Tangerang 0,32% 0,10% 0,49% 1,06% 0,20% 2,17%
Tangerang 2,29% 0,15% 1,42% 3,70% 0,39% 7,95%
South
tangerang 5,36% 0,29% 1,65% 1,14% 0,24% 8,68%
6 According to commuter survey data in Jabodetabek 2014 below, there are 1,38 million commuter Bodetabek (Bogor, Depok,Tangerang,Bekasi) who have activity in DKI Jakarta. The table above shows the percentage of commuter in 2014. According to the table can be seen that the most high commuter from Bodetabek to DKI Jakarta is from Bekasi, with 14,80 percent, followed by commuter from Depok with 11,69 percent, and commuter from SouthTangerang with 8,68 percent.
The survey also shows the distribution of the commuter destination in DKI Jakarta. Mostly in Depok commuter commuting activities in South Jakarta (6,47%), commuter from Bekasi mostly commute in East Jakarta (6,35%). And south tangerang commuters mostly commute in South Jakarta (5,36%). This is in accord with the laws of mobility behavior population (Ravenstein) which says that migrants will choose the closest major move as the destination. The main activity of the place every day also be an indicator of electoral residence actors commuter (CBS, 2015).
Along with population growth and the number of users of private car which reached 86% in Jakarta. Indeed, many reasons that make people reluctant to switch to a mode of mass transportation. The reasons include the availability of mass transportation units that do not fit the needs, the lack of security and comfort, and no integration between modes of mass transportation. (Ali, 2014)
7 Table 1.3
Development of Vehicle in South Tangerang
Vehicle 2011 2012 2013 2014
Motorcycle 580.490 700.672 792.518 916.283
Car 81.366 85.291 90.681 101.112
Truck 67.989 70.610 74.706 78.895
Bus 21.617 24.582 24.627 24.880
Total 751.462 881.155 982.532 1,121,170 Source: Regional Statistic of South Tangerang 2015
The growth of motorcycle over the last five years reached 14 percent per year. If broken down by type of vehicle, motorcycle experiencing the highest growth of 15,7 per cent per annum.
The number of motorcycle owner is the biggest because the motorcycle is still the most economical vehicles. In addition to affordable prices, the process of motorcycle ownership is also very easy. Many leasing companies are vying for market motorcycle products. It is nearly the same kind occurred in passenger cars. The high ownership of types of motorcycle and passenger cars have encouraged the development model of sharing economy to reduce the environmental impact due to excessive consumption, saving costs by hiring or consumption of goods unfit for use and provide access to people who need a product but does not have the ability to buy goods. (Markplus institute, p36).
One private company provider of online transportation network is GO- JEK. GO-JEK is a social enterprise that partners with a group of experienced and trustworthy ojek drivers to deliver a one-stop-shop convenience service for Indonesians. The services include Transport, Instant Courier, GO-FOOD and Shopping. GoJek system can be used for every cellphone which have connected to the internet. Many well-known
8 providers such as GrabBike and Uber Motor for online transportation service basis, but only 1 brand that had been becoming the winner of online transportation service and It was GoJek. Gojek becoming the best because they offer various kind of services and they knew how to market their products. The data below proved GoJek can be said as the market leader because they were the best than GrabBike and UberMOTOR.
Table 1.4
Various types of online Transportation Service (Motorcycle)
Provider 2014
Partners
2015 Partners
2016 Partners
GoJek 800 10.000 220.000
GrabBike 1.000 8.000 400.000
UberMOTOR - - 900
Source: tekno.liputan6.com 2016
Based on that amount, GO-JEK rapidly increasing each year, followed by GrabBike and UberMOTOR as the new competitor since 2016. Based on the table above GO-JEK has successfully became the first rank in Indonesia.
Even, Uber was in lower position than GO-JEK. (www.tekno.liputan6.com).
The founder of GO-JEK is Nadiem Makariem, Birian Cu and Michaelangelo Moran. GO-JEK currently has more than 4000 drivers in South Tangerag.. It has several service options: GO-JEK ( a pick-up service by motorcycle), GO-Car (a pick-up service by car), GO-BOX (shipping service by iruck). In addition, GO-JEK also has a number of services such as GO- FOOD (a delivery service for food and soft drinks), GO-SEND (courier service), GO-MART (shopping platform service), GO-MASSAGE (professional massage service), GO-CLEAN (professional cleaning service), GO-GLAM (beauty salon service), GO-TIX (mobile ticketing service), GO-
9 BUSWAY (timetable monitoring), GO-PAY (Virtual cash service), GO-MED (medical supplies service). GO-AUTO (Auto care service) and GO-PULSA (top-up service). Currently Indonesian GO-JEK operates in ten major cities such as: Jakarta, Bandung, Surabaya, Bali, Makassar, Yogyakarta, Medan, Semarang, Palembang and Balikpapan.
According To lovelock and Wirtz (2010: p280), from a customer’s perspective, the encounter with service staff is probably the most important aspect of a service. From the firm’s perspective, the service levels and the way service is delivered by the frontline personnel can be an important source of differentiation as well as competitive advantage. Service employees are so important to customers and the firm’s competitive positioning because the frontline are the core part of the product which significantly determines service quality. Frontline is the service firm who represent the service firm, and from a customer’s perspective, they are the firm. It is also a core part of the brand. Service personnel often are crucially important for generating sales, cross-sales, and up-sales. It determines productivity, as frontline employees have heavy influence on the productivity of frontline operations. Thus, Services (i.e., frontline staff) are in constant contact with customers, and shows that employee satisfaction and customer satisfaction are highly correlated.
According to the information above, the aim of this research is to explore how the sharing economy can create profitable business opportunity to increase wellbeing which collaborates with GO-JEK. Thus, the sharing economy to make further in-roads in Indonesia, the sharing platforms will have to address a few key imperatives. A technology platform that provides a
10 transparent pricing, verified listings and background checks, and assured delivery of services will reinforce consumer trust in these platforms. Thus, the sharing economy can help company create marketing strategies to promote its business and obtain good employees.
B. Research Question
Based on the background that the author has described, the formulations of the problem are:
1. Do people influence the opportunity to increase wellbeing?
2. Does products & process influence the opportunity to increase wellbeing?
3. Does partnership influence the opportunity to increase wellbeing?
4. Do people, product & process and partnership simultaneously have significant influence the opportunity to increase wellbeing?
C. Research objective
Based on the fact that the model of sharing economy is rapidly increasing in Indonesia, the objective of this research is:
1. To analyze how sharing economy influence the opportunity to increase wellbeing.
2. To analyze how people influence the opportunity to increase wellbeing.
3. To analyze how products & process influence the opportunity to increase wellbeing.
4. To analyze how partnership influence the opportunity to increase wellbeing.
11 D. Research Advantage
1. For the author, this research can improve the author’s knowledge and this topic can always be used in every kind of business. This research is also done in order to graduate as a Bachelor of Economics of State Islamic University Jakarta.
2. For company, the result of this research can be used to improve the strategy of GO-JEK because the results are based from the background of the drivers.
3. For Islamic State University (UIN) Jakarta, the research can also be used for other students in order to help the students to finish their thesis.
4. For the driver, the research will be the source of knowledge to open up a business with sharing economy model.
5. For reader and Another Research, I hope people who read this research will feel easy to read the methods of this research
12 CHAPTER II
LITERATURE REVIEW
A. Variables Theory 1. Transportation
Transportation is an activity of transport or move both goods and people from one place to another. Transport has an important role for connecting people and place.
Transportation services can be utilized both in the scope of local, regional, national, and international levels. Besides, transport has function to support the development activities of other sectors such as education, trade, industry, health, and others.
(Adisasmita,2011)
The function of transportation is basically to facilitate communication and encourage the mobility of people. The existence of transport facilities and infrastructure facilities in the region greatly influences the interaction between the regions. The availability of adequate transport system in an area can lead to higher population movements between regions so that an interaction between the two areas is getting stronger. Therefore, the transportation is very important role in supporting the development process of the region. The diversity of geographical conditions in certain areas requires planning effective transport system and optimized for use by the public in an integrated manner. (Saputri, 2014)
2. City Transportation System
The transportation system is the components that support each other and cooperate in the procurement of transport activity (Miro, 1997). Transportation has several dimensions, as the location (origin and destination), tools (technology) and specific purposes such as the purpose of economic, social, and other activities. Range of transport services is the geographical boundaries of the services provided by
13 transport on the transport users. Therefore, the city's transportation system is a unity of the components that support each other and cooperate in the procurement of transport that serve urban areas.
Morlok states the main components in transport is:
1. People and Goods 2. Vehicle and containers
3. Road ( A moving conveyance)
4. Station / Halte ( pick up & drop off place)
5. Operation system (which regulated these components)
Hanson (1995, in Abdillah, 2014) suggests the two concepts in the understanding of transport, such as accessibility and mobility. Accessibility is the total of the opportunity, in terms of activity, is within a certain distance or travel time while mobility is the ability to make the shift from the different activities.
Adisasmita (2011) suggests the main functions in the economy and the development of transport there are two, such as a support (serving facility) and as a driver or support (promoting facility). Transportation as a support (servicing facility) for the purpose of serving transport services in the development activities of other sectors. While transport serve as a spur development (promoting facility) meant that the construction of facilities (infrastructure) transport is expected to help open backwardness of border regions.
3. Factors Influencing the Selection of Transportation Mode
Selecting the mode of transport in urban areas is not a random process, but is influenced by factors such as speed, distance of travel, comfort, pleasure, cost, reliability and availability, the size of the city and the socioeconomic status of the
14 traveler. (Bruton, 1972 Warpani, 1990). Factors affecting the choices are aspects that influence a person to use a particular mode of transportation. Factors that are influencing the selection of transportation mode is based on the characteristics of the road, movement characteristics, and characteristic modes of transport facilities (Tamin, 2000).
Factors influencing the selection of transportation mode based on characteristic of the user are:
1. Availability or ownership of private vehicle: Someone who has a personal vehicle is usually made less use of public transport.
2. Ownership of Driving License (SIM)
3. Household: family with children, retired, single, etc
4. Income: the higher the income the higher opportunity to use of private vehicle
According to (Tamin, 2000), Characteristics of a person's movements can also affect the moda choice is used. These factors are:
1. The purpose of movement: work, shopping, schools, recreation, social, etc.
2. The timing of the movement.
3. Distance traveled: people will tend to use public transport to travel that far.
4. Marketing
a. Definition of Marketing
Broadly marketing is defined as a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others (Armstrong and Kotler, 2009: 38).
15 Marketing is the process by which companies create value for customers and build strong customer relationship in order to capture value from customers in return (Armstrong and Kotler, 2009: 38).
The American Marketing Association defines marketing and marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders (Kotler et al, 2009:5).
The twofold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction (Armstrong and Kotler, 2009: 37).
Marketing is a social process involving the activities necessary to enable individuals and organizations to obtain what they need and want through exchanges with others and to develop ongoing exchange relationships (Mullins, Walker, and Boyd, 2008: 6).
Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders (Kerin et al, 2006: 8).
5. Service Marketing
Service is the most important element to know customer satisfaction in consuming the product or service. Service has variety meaning and traditionally difficult to describe. Some expert also define in different ways, here are the definition of service:
a. According Lovelock and Wirtz (2011:9) services are economic activities that have offered by one party to another party, most commonly employing time-
16 defined performances to bring about desired result in recipients themselves or in object or other assets for which purchasers have responsibility.
b. According Lovelock and Wirtz (2005:9) services are economic activities that have offered by one party to another party, most commonly employing time- defined performances to bring about desired result in recipients themselves or in object or other assets for which purchasers have responsibility.
c. According to Kottler and Keller (2012: 356) service is any act or performance one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product.
According sto Kotler and Armstrong (2012:5) Marketing is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
According to Lovelock and Wirtz (2010: 24) service marketing is a broad category of marketing strategies focused on providing service as the core product.
According Lovelock and Wirtz (2005:8) service organizations range in size from huge international corporations like airlines, banking, insurance, telecommunications, hotel chains, transportations, restaurants, laundries, taxis, optometrists, and numerous business-to-business ("B2B") services.
6. Categories of Service Mix
According to Kotler and Keller (2012: 356) the service component can be a minor or a major part of the total offering. It has five categories of offerings:
a. Pure tangible goods: these include physical products with no accompanying services.
17 b. Tangible good with accompanying services: a tangible good, like a car, computer, or cell phone, accompanied by one or more services. Typically, the more technologically advanced the product, the greater the need for high- quality supporting services.
c. Hybrid: an offering, like a restaurant meal, of equal parts goods and services.
People patronize restaurants for both the food and its preparation
d. Major service with accompanying minor goods and services: a major service, like air travel, with additional services or supporting goods such as snacks and drinks. This offering requires a capital-intensive good—an airplane—for its realization, but the primary item is a service.
e. Pure service: primarily an intangible service, such as babysitting, psychotherapy, or massage. These are only service where the element of intangibility and non-transfer of ownership is maintained.
7. Service Marketing Mix
According to Lovelock (2010: 24) the 7 Ps of services marketing are needed to create viable strategies for meeting customer needs profitability
a. Product: all components of the service performance that create value for customers. Managers must select the features of both the core product and the bundle of supplementary service elements surrounding it, with reference to the benefits desired by customers and how well competing products perform.
b. Place: Delivering product elements to customers involves decisions on both the place and time of delivery and may involve physical or electronic distribution channels (or both), depending on the nature of the service being provided. Firms may deliver service directly to their customers or through intermediary organizations.
18 c. Price: expenditures of money, time and effort that customers incur in
purchasing and consuming services.
d. Promotion: all communication activities and incentives designed to build customer preference for a specific service or service provider. This component plays three vital roles: providing needed information and advice, persuading target customers of the merits of a specific product, and encouraging them to take action at specific times.
e. Process: a particular method of operations or series of actions, typically involving steps that need to occur in a defined sequence. Creating and delivering product elements to customers requires the design and implementation of effective processes.
f. Physical Evidence: visual or other tangible clues that provide evidence of service quality. Service firms need to provide evidence of service manage physical evidence carefully because it can have a profound impact on quality, customers' impressions.
g. People: customers and employees who are involved in service production.
The nature of these interactions between employee and customer strongly influences the customer's perceptions of service quality. Customers often judge the quality of the service they receive largely on their assessment of the people providing the service. Successful service firms devote significant effort to recruiting, training, and motivating their personnel.
8. Consumer-Oriented Marketing
According to Kotler and Armstrong (1999:61) Consumer oriented marketing means that company views and organizes its marketing activities
19 from the consumer’s perspective. It should work to sense, serve and satisfy the needs of a defined group of customers.
According to Kotler and Keller (2012:36) marketing orientation succeeds by managing a value chain that delivers a high level of product quality, service, and speed.
Marketing must be well coordinated with other company departments.
Marketing works when all employees appreciate their impact on customer satisfaction. Kotler and Keller (2012:124)
Figure 2. 1
Modern Customer-Oriented Organization Chart
As shown in Figure 2.1 at the top of the organization are the customers. Next in importance are the front-line people who meet, serve, and satisfy the customers. Under them there are the middle managers, whose job is to support the front-line people so they can serve the customers well. Finally, at the base is top management, whose job is to support the middle managers.
There are customers along the sides of the figure, to indicate that all the
20 division is involved in knowing, meeting, and serving customer. They achieve profitable growth by expanding customer share, building customer loyalty, and capturing customer lifetime value.
According to Lovelock and Wirtz (2011:303) a strong service organization is where the entire organization focuses on the frontline to support the frontline in their task of delivering service excellence to their customers.
In order to create a successful service firm, there is a need to understand the cycle of success where all employees are satisfied with their jobs and productive can deliver service excellence and as a consequence, customers are satisfied and loyal (Lovelock and Wirtz, 2011:309).
9. Service Employee
The quality of a service firm’s people especially who are working in customer- facing positions plays a crucial role in determining market success and financial performance. That’s why the People element of the 7 Ps is so important.
According Lovelock and Wirtz (2011:280) from a customer’s perspective, the encounter with service staff is probably the most important aspect of a service. From the firm’s perspective, the service levels and the way service is delivered by the frontline personnel can be an important source of differentiation as well as competitive advantage. Service employees are so important to customers and the firm’s competitive positioning because the frontline:
a. Core part of the product: Often, the service employee is the most visible element of the service, delivers the service, and significantly determines service quality.
21 b. Service firm: Frontline employees represent the service firm, and from a
customer’s perspective, they are the firm.
c. Brand: Frontline employees and the service they provide often are a core part of the brand. The employees determine whether the brand promise is delivered.
d. Affects sales: Service personnel often are crucially important for generating sales, cross-sales, and up-sales.
e. Determine productivity: Frontline employees have heavy influence on the productivity of frontline operations.
Figure 2.2 The Cycle of Success
According Lovelock and Wirtz (2011:290) on figure 2.2 shows that success applies to both employees and customer. Attractive compensation packages are used to attract good quality staff. Broadened job designs are accompanied by training and
22 empowerment practices that allow frontline staff to control quality. With more focused recruitment, intensive training, and better wages, employees are likely to be happier in their work and to provide higher quality, customer-pleasing service.
Regular customers also appreciate the continuity in service relationships resulting from lower turnover and so are more likely to remain loyal.
According to James et al (1994:166), the service-profit chain establishes relationships between profitability, customer loyalty, employee satisfaction, loyalty and productivity.
Figure 2.3
The Links in The service-Profit Chain
The links in the chain regarded as propositions are as follows: loyalty is a direct result of customer satisfaction. Satisfaction is largely influenced by the value of services provided to customers. Value is created by satisfied, loyal and productive employees. Employees’ satisfaction, in turn, results primarily from high quality support services and policies that enable employees to deliver results to customers.
23 According to Bulgarella, C. Caterina (2005:5) how employees feel about their job has an impact on their work experience, but also on tangible business outcomes such as customer satisfaction, sales, and profit. Employees can strongly contribute to an organization’s success by having a customer-centric approach in their work and in their work-related interactions
From the definition above successful service organizations are working closely with marketing and operations managers and committed to effective management of human resources that create satisfy employee to help company improve its market oriented.
10. Sharing economy
Sharing economy is an economic model based on sharing, swapping, trading, or renting products and services in a way that enables access over ownership. This can include business-to-consumer, business-to-business, and/or peer-to peer transactions.
(Rachel Bostman:2010).
According A. Stephany, the sharing economy is the value in taking underutilized assets and making them accessible online to a community, leading to a reduced need for ownership for those assets. (Alex Stephany:2015)
To enable more people to benefit from and contribute to the sharing economy, there needs to be an intentional focus on inclusion as a core part of the business model. While corporate citizenship and philanthropic programs provide important contributions, companies that build an inclusive business model will contribute to a more sustainable impact and create more opportunities for business growth.
24 BSR is a global nonprofit organization that works with its network of more than 250 member companies and other partners to build a just and sustainable world. From its offices in Asia, Europe, and north America, BSR develops sustainable business strategies and solutions through consulting, research and cross-sector collaboration.
According to BSR’s Framework of inclusive economy, there are there BSR’s inclusive economy framework, which outlines three ways business can help create an inclusive economy: good jobs, access to goods and services and investments for prosperous local communities.
11. Access to Essential Goods and Services
Based on BSR’s Inclusive sharing economy, there are three important to build an inclusive sharing economy, focused on the second pillar: access to goods and services helps individuals improve their well-being and standard of living and realize their potential—creating significant macro-economic benefits and serving as a driver of innovation and productivity, which benefits businesses. However, enhancing access to goods and services depends on the other pillars, specifically:
a. People (cultivating diversity and inclusion)
b. Products and process (fostering inclusive innovation) c. Partnership (amplifying impact and reach)
25 12. Dimension of Access to Essential goods and Services
Figure 2.3
Inclusive Sharing Economy Framework
(Source: Shareable.net)
a. People (Cultivate Diversity and Inclusion)
According to Taylor Cox in Cultural Diversity in Organizations, Managing diversity is defined as planning and implementing organizational systems and practices to manage people so that the potential advantages of diversity are maximized while its potential disadvantages are minimized.
For the sharing economy to be inclusive, it must cultivate diversity in workforces and create good jobs. It must also make inclusion a priority in the investment community, which sets the expectations for company performance. Creating a culture of inclusion along the value chain is the
26 foundation for fostering more inclusive innovation in products and processes and building partnerships with a diverse range of actors. (BSR an Inclusive Sharing economy 15:38).
1) Inclusive Workforce
Inclusiveness is about leveraging the differences such as : Education Background, gender, age and marital status.is about creating an environment where all of people feel, and are, valued, where they are able to bring their differences to work each day, and where they contribute their personal best in every encounter.
(Source:http://www.ey.com/us/en/people-and-culture/diversity-and- inclusiveness)
To promote inclusiveness, the workers have to be diverse. Having a diverse workforce can help companies capture a larger share of the consumer market, because individual workers who have varied backgrounds and experiences can better understand and market to a larger group of consumers. (Kerby and Burns, 2012). Diversity for sharing economy companies has centered on drivers, hosts, or other providers of and participants who use these services. Companies also can cultivate diversity and encourage inclusion in their own workforces—from executives to engineers to user-experience designers—to ensure that diversity is considered in the development of product and services. By adopting the best practices, inclusiveness will be well on its way to building an inclusive workplace (BSR inclusive sharing Economy 15:38)
Research shows that having a diverse workforce can help companies capture a larger share of the consumer market, because individual workers
27 who have varied backgrounds and experiences can better understand and market to a larger group of consumers. ( kerby and burns, 2012)
2) Participation by a diverse set of providers
For the sharing economy needs to be both available and accepted in communities. Many companies in the sharing economy suffer from a trust deficit in communities of people who believe that the benefits of the sharing economy are not being shared widely. One way to address this is to recruit and retain more providers in areas where target users live. (BSR inclusive sharing Economy 16:38). There are a few ways for companies to encourage participation by a more diverse set of providers.
Companies can facilitate the purchase or lease of assets. For example, GO-JEK partnered with PT. Courts Retail that gives GOJEK drivers access to own smartphone at affordable credit price. (source: http://www.beritasatu.com)
Companies can also explore ways to improve job quality in order to attract and retain providers and ensure quality services.
This means ensuring that contract workers are protected by labor standards like minimum wage, overtime pay, and sick leave, and providing adequate social and health-care benefits. It can also include incentives that motivate providers and raise their incomes, training, and support so providers can become successful entrepreneurs. (BSR inclusive sharing Economy 16:38)
3) Inclusion as a priority in capital markets
Promoting inclusion within sharing economy companies requires that financial drivers are aligned with companies’ intentions to
28 create social and economic value. Existing capital markets are structured to undervalue inclusion, which creates barriers for early- stage companies that are beholden to their investors and fighting to stay afloat. Although socially responsible investing has grown significantly in the last few years, factors such as inclusion and diversity are not often prioritized in investment decisions. In recognition of the fact that sharing economy companies were established with the intention to provide social and economic benefit, investors should position themselves and their assets to facilitate the growth of the companies’ positive impacts, such as empowering partner with higher earnings, better utilization of time and creating business in order to generate income to the bottom line. This requires a perspective of ―patient capital‖ that considers long-term returns and social impact returns to be key factors in investment decisions. (BSR inclusive sharing Economy 17:38)
b. Products and Process ( Foster Inclusive Innovation)
Innovation is implementing new ideas that leads to the creation of social and economic value. (Gordon graham, U.S National Innovation Initiative, 2008). According to Schumpeter, Innovation is the
―Implementation of new combinations‖ (new product, new production method, new markets, new purchasing source, new organization).
Companies can gain insight into low-income users’ specific needs by taking a more human-centered approach to their product- and service- development processes. Human-centered design, popularized by product and service designers at IDEO, has been used widely— notably to improve
29 the lives of low-income individuals. Such an approach has the power to open new markets with tailored innovations in delivery models and with product and service offerings that align with the needs of low-income individuals. These needs may span from access to credit cards and traditional financial systems required to participate in sharing economy services, to flexible payment plans for those living paycheck to paycheck, to platform alternatives to accommodate greater mobile web and Android OS usage among low-income smartphone users. (BSR’s Inclusive Sharing Economy 17:38)
1) Innovation Management
Afuah (1998) suggested innovation is the use of new technical and administrative knowledge to offer a new product or service to consumers. Ohno, 1988 define innovation management is a new set of practices and processes aimed at improving production efficiency and reducing waste. According to Yorks & Whitsett, 1985 innovation management is a new set of practices and processes around the job design of employees with the goal of improving their happiness at work.
In addition to retaining a diverse workforce, companies can encourage employees to focus on inclusive innovation through technology by setting inclusion as a top business priority, providing financial and other related resources, and rewarding and incentivizing employees who pursue inclusive innovation work. (BSR’s Inclusive Sharing Economy 1:38)
2) Human Centered Design
30 One of the innovation-management practices companies can implement is adopting a more human-centered approach to product and service design. Sharing economy firms are increasingly recognizing the importance of design in facilitating inclusion.
3) Service Innovation
A service innovation is a new service or such a renewal of an existing service which is put into practice and which provides benefit to the organization that has developed it; the benefit usually derives from the added value that the renewal provides to the customers. In addition, to be an innovation the renewal must be new not only to its developer, but in a broader context, and it must involve some element that can be repeated in new situations, i.e. it must show some generisable features(s). A service innovation process is the process through which the renewals described are achieved (Toivonen &
Tuominen, Emergence of Innovations in Services: Theoretical discussion and two case studies, 2006).
Service innovation is the multidisciplinary process of designing, realizing and marketing combinations of existing and/or new services and products with the final attempt to create valuable customer experiences. (Flikkema et al. 2010)
According to Biswas.R and Pahwa (2015:2) the appeal of sharing economy lies in the fact that sharing economy platform is efficient for the traveler. It also facilitated the new creation of new market. Enterprising can now generate income by renting assets. Trust must be achieved as a first step because the technology has made it
31 more reliable, affordable and safe by authenticating the identity of the service provider.
c. Partnerships (Amplify Impct and research)
Expanding access also requires partnerships to address systemic barriers ranging from low levels of social capital and trust among communities to unsupportive regulations and poor infrastructure. Four different types of partners could help support a more inclusive sharing economy:
1) Partnership with Government and policymakers
There is a need for sharing economy companies to partner with government to create policies that help them grow in a way that creates more benefits for more people and mitigates negative impacts. This could include adjustments to consumer-protection. It could also include policies that seek to integrate these new models into long-term city planning to address gaps in existing public services. .A few cities are starting to take such an approach by considering how shared mobility services can be one piece of the larger transportation and mobility system.
According to A.H. Vos (2010:23) Service innovation can also be viewed as an external process that mainly focuses on interaction with (potential) customers, with the final goal to create high quality customer value.
Trust must be achieved as a first step and supported by technology to make it more reliable, affordable and safe. Moreover, dynamic pricing is applied on a location-specific basis depending on
32 the supply-demand ratio at a particular point in time. (R.Bisawas and Pahwa.A, 2010:9)
2) Partnerships with local communities and civil society actors
Engaging communities, especially local community groups and nonprofit organizations, can help companies identify and understand key community needs and launch pilot projects that tackle existing urban challenges.
It can also help strengthen community trust in new models and promote the idea of sharing with strangers. Regulatory or technological fixes are not the only way to harness the sharing economy to promote greater inclusion. Companies must also commit to understanding and addressing the underlying inequalities in access to technology and credit, discrimination and distrust, and a host of other deep-rooted factors that prevent the sharing economy from working well for everyone. (Tomer and kane 2015). By creating a network with nonprofits, companies could make this an ongoing part of the sharing economy experience, fostering connectivity and a culture of inclusion and trust. (BSR’s Inclusive sharing economy 24:38)
GO-JEK has partnered with Dompet Duafa, the non-profit institution that belongs to the people submissive Indonesia lift the dignity of the poor social humanity. Together, they are helping people who need helps caused by the flood in Garut, 22 September 2016. (source:
dompetdhuafa.org)
33 3) Partnerships with other sharing economy companies
While sharing economy companies are still jockeying for competition, many are starting to see the value in partnering with their peers, especially when it comes to advocacy and positioning with regulatory bodies. These partnerships can be attractive to sharing economy companies, especially when they help overcome external barriers such as poor access to credit for low-income service providers or users. These partnerships include traditional and even competing businesses for instance, in car rental or hospitality industries as well as partnerships with payment and technology companies that serve as facilitators or enablers (BSR’s Inclusive sharing economy 24:38).
GO-JEK has launched Swadaya, it is a program to improve the wellbeing of the drivers. GO-JEK and PT Ruma, together launched Swadaya for the drivers with five benefits, such as: have access towards financial institution in order to have access over financial service, insurance benefit, affordable installment of pruducts, benefits over purchasing goods or foods and repair service. Drivers can gain their income simply by being a head of Arisan (social gathering which a group of relatives meet monthly for a private lottery).
(www.driver.go-jek.com)
4) Partnership with The Broader Business Community
These partnerships can be attractive to sharing economy companies, especially when they help overcome external barriers such as poor access to credit for low-income service providers or users.
These partnerships include traditional and even competing businesses.
34 If these types of models addressed specific needs of small- and medium-size enterprises in low-income neighborhoods, this could unlock significant opportunities for small businesses, support positive relations in communities, and promote more sustainable use of resources. Promoting sharing of assets with businesses is also seen as part of companies’ commitments to sustainability, especially when this enables companies to reduce or eliminate waste or unused assets.
GO-JEK has partnered with various business communities such as:
1. Blue Bird Taxi: Gojek platform can facilitate Blue bird to search for a passanger.
2. BCA and Mandiri : both financial institution facilitate Gojek in order to bring E-cash asone of the payment method.
3. Telkomsel: To improve services for users of both services company, Telkomsel GO-JEK cooperation with Indonesia in terms of communications solutions for the GO-JEK driver, and the development of distribution channels for products and services Telkomsel. In this partnership, the two sides also involves Tiphone voted as the online channel partners Telkomsel products.
4. LINE: partnership between Go-Jek and LINE is an online to offline basis communication for driver and rider.
5. Restaurants and other related services.
13. Well Being
According to World Health Organization (WHO) 1948, proposed a definition that viewed health as ―a state of complete physical, mental, and social well-being and not merely the absence of disease and infirmity‖ (WHO, 1948). Nonetheless, most
35 health care research and practice continued to rely on the traditional medical model that focused on reducing disease and disability, with little attention given to the nature of health and well-being. A variety of different conceptualizations of well-being were also being promoted during this time, and the proliferation of these approaches led to confusion as to how to properly define and measure positive health and functioning (Jayawickreme et al., 2012; Lent, 2004). These varying conceptualizations can be categorized into four broad approaches; such as The Hedonic approaches, the eudaimonic approach, quality of life (QoL) and wellness.
14. Dimension of Well-Being 1) The Hedonic Approach
According to Ryan & Deci, 2001, the hedonic approaches to conceptualizing well-being focus on pleasure and happiness. The most prominent hedonic model is known as subjective well-being, a tripartite model consisting of satisfaction with life, the absence of negative affect, and the presence of positive affect (Diener, Emmons, Larsen, & Griffin, 1985). Proponents of this perspective tend to conceptualize well-being in terms of all three of these constructs, although many researchers focus on life satisfaction alone when assessing well-being from this perspective.
2) The Eudaimonic Approach
Eudaimonism is a moral philosophy that defense right action as that which leads to the well-being of the individual, thus holding well-being as having essential value. The eudaimonic approaches tend to focus on a larger number of life domains, although they vary significantly regarding the fundamental elements that determine well-being. For example, one of the more prominent eudaimonic
