THE EFFECT OF LEVERAGE FACTORS OF LEARNING TO PRODUCT QUALITY OF WOODEN HOUSE INDUSTRY AT WOLOAN DISTRICT, NORTH SULAWESI, INDONESIA

Abstract

Purpose- The purpose of this study is to determine the ability and to analyze the effect of leverage factors of learning to product quality in Wooden House Industry at Woloan District, North Sulawesi, Indonesia, as well as to predict the probability of this industry to produce quality products.   

Methodology- To answer these purposes, the Logistic Regression is being applied to 38 firms and customers.   There are 22 firms that are able to produce good quality  and 16 firms that  produce less quality. Predictly, there are 19 firms that are able to produce good quality, 12 firms that produce less quality, and 3 firms that obviously are able to produce good quality but predictably unable to produce good product, and 4 firms that obviously  produce less quality, but predictably will be able to produce  good quality. 

Findings- The leverage factors of learning have a significant effect on product quality. Simultaneously, all factors have significant effect on the product quality, partially, factors of knowledge acquisition, knowledge assimilation and knowledge exploitation have significant effect, except knowledge transformation. 

Conclusion- It can be concluded that learning process should be applied as a routine and sustainable activity for this industry to produce quality products. The role of management in this process is to acquire new and relevant knowledge, to utilize and optimize knowledge, to increase research and development, to optimize human resources, to initiate new thinking, to innovate new product, and to identify new solutions to solve problems.

 

Keywords

• Knowledge acquisition
• knowledge assimilation
• knowledge transformation
• knowledge exploitation
• learning and quality

References

1. Aaker, D.A. (1995). Developing Business Strategies. John Wiley & Sons, Inc, Fourth Edition.
2. Albert, M. (2005). Managing Change: Creating a Learning Organization Focused on Quality, Problems and Perspectives in Management, I/2005, 47-54.
3. Barney, J. B. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1): 99-120.
4. Barney, J.A. & Clark, D.N. (2007). Resource-Based Theory Creating and Sustaining Competitive Advantage. Oxford University Press.
5. Barreto, I. (2010). Dynamic Capabilities: a Review Of Past and an Agenda for the Future. Journal of Management 36:256, DOI : 10.1177/0149206309350776, Vol. 36 No. 1, pg. 256-280.
6. Campbell, A.J. (2003). Creating Customer Kknowledge Competence: Managing Customer Relationship Mmanagement Programs Strategically. Industrial Marketing Management 32, pp. 375-383.
7. Choo, C.W. & Bontis, N. (2002). The Strategic Management of Intellecual Capital and Organizational Knowledge. New York : Oxford University Press, Inc.
8. Choo, C.W. (1998). The Knowing Organization, How Organizations Use Information To Construct Meaning, Create Knowledge and Make Decisions. Oxford University Press, Inc.

9. Cohen, W.M & Levinthal, D.A. (1990). Absorptive capacity : A New Perspective on Learning and Innovation. Administrative Science Quarterly, Vol. 35, No. 1, Special Issue: Technology, Organization, and Innovation, pp. 128 – 152.
10. Cooper, D.R. & Schindler, P.S. (2006). Business Research Methods, ninth edition. Mc Graw-Hill International Edition.
11. Cunliffe, A.L. (2008). Organization Theory. Sage Publication Ltd 1 Olivers Yard 55 City Road London ECIY 1 SP.
12. Cyert, R.M & March, J.G. (1992). A Behavioral Theory of the Firm, second edition. Oxford, UK: Blackwell.
13. Eisenhardt, K.M. & Martin, J.A. (2000). Dynamic Capabilities: What Are They? Strategic Management Journal 21, pp 1105–1121.
14. Gilley, J.W. & Maycunich, A. (2000). Organizational Learning Performance and Change, an Introduction to Strategic Human Resources Development. Publishing, Cambridge, Massachusetts.
15. Grant, R.M. (1991). The Resources Base Theory of Competitive Advantage : The Implications for Strategy Formulation. California Management Review. Haberberg A. & Rieple, A. (2009). Strategic Management Theory and Application. Oxford University Press.
16. Hatch, M.J. (1997). Organization Theory, Modern Symbolic and Postmodern Perspectives. Oxford University Press.
17. Jones, G.R. (1995). Organizational Theory : Text and cases. Addison-Wesley Publishing Company Inc.
18. Kotler, P., Ang, D.A. & Tan, C.T. (1996). Marketing Management, an Asian Perspective. Prentice Hall Inc.
19. Levitt, B. & March, J. G. (1988). Organizational learning. Annual Review of Sociology, 14: 319–340.
20. McLeod, Jr, R. (2005). Management Information System: a Study of Computer-based Information Systems 6th edition. Prentice Hall, Inc, A Division of Simon & Schuster, Inc. Englewood Cllifs, New Jersey 07632.
21. Park, H.M. (2010). Regression Models for Binary Dependent Variables Using Stata, SAS, R, LIMDEP, and SPSS. Working Paper, The University Information Technology Services (UITS) Center for Statistical and Mathematical Computing, Indiana University, pp 1-62.
22. Pavlou, P.A. & Sawy, O.A.E. (2005). Understanding the BBox of Dynamic Capabilities. Under a 3rd round of review in management science, pp 239-273.
23. Pavlou, P.A. & Sawy, O.A.E. (2011). Understanding the Elusive black Box of Dynamic Capabilities, Decision Sciences Volume 42 Number 1, pp 239-273.
24. Porter, M.E. (1980). Competitive advantage. New York: Free Press.
25. Porter, M.E. (1985). The Competitive advantage: Creating amd Sustaining Superior Performance. New York: Free Press.
26. Rantung, V.V. (1992). Perception of Population Change and the Implementation of Population Education: A Case Study in North Sulawesi, Indonesia. Doctoral diss., Florida State Univeristy.
27. Reilly, M. & Scott, P.S. (2010). Dynamic Capabilities, Absorptive Capacity and Knowledge Sharing a Reseacrh Agenda into Explicating the Antecedent Factors Conducive to Subsidiary Bargaining Power. Academy of International Business (UKI Chapter) Conference paper, Trinity College Dublin.
28. Rengkung, L. R. (2012). Dynamic Capabilities Perusahaan Agribisnis pada PT. Sampoerna Agro, Tbk dan PT. Bakrie Sumatera Plantations, Tbk. Disertasi, Program Pascasarjana Fakultas Ilmu Sosial dan Ilmu Politik, Departemen Ilmu Administrasi, Universitas Indonesia, Jakarta.
29. Rozan, A. (2009). Pengembangan model tentang pengaruh able people dan agile people process terhadap dynamic capabilities dalam proses kebijakan publik (studi kasus pelayanan bidang pendidikan di Kabupaten Jembrana, propinsi Bali, disertasi, Program Pascasarjana Fakultas Ilmu Sosial dan Ilmu Politik, Departemen Ilmu Administrasi, Universitas Indonesia, Jakarta, 2009.
30. Robbins, S.P. & Judge, T.A. (2011). Organizational Behavior, fourteenth edition. Pearson Education Limited. Senge, P.M. (1990). The Fifth Discipline, the Art and Practice of the Learning Organization. New York : Bantam Dell Publishing Group. Inc. 1540 Broadway, New York 10036.
31. Slater, S.F & Narver, J.C. (1995). Market Orientation and Learning Organization. Journal of Marketing, Jul. 1995; 59, 3; ABI/INFORM Global, pp 63-74.
32. Teece, D.J. (2007). Explicating Dynamic Capabilities: The Nature and Microfoundations of (Sustainable) Enterprise Performance. Strategic Management Journal Published On Line in Wiley InterScience DOI:10.1002/smj.640, pp 1319-1350.
33. Teece, D.J., G. Pisano & Shuen, A. (1997). Dynamic Capabilities and Strategic Management. Strategic Management Journal,Vol. 18:7, pp 509-533.
34. Walpole, R.E. (1993). Pengantar Statistika. PT Gramedia Pustaka Utama, Jakarta.
35. Zahra, S.A & George, G. (2002). AbsorptiveC: a Review, Reconceptualisation, and Extension. Academic of Management Review, Vol. 27, No. 2, pp 185-203.
36. Zollo, M & Winter, S.G. (2002). Deliberate Learning and the Evolution of Dynamic Capabilities. Organization Science, Informs, Vol. 13, No. 3, pp 339-351.