Strategy for Improving the Effectiveness of Management Vocational School-Based Enterprise in Indonesia

Abstract

Indonesian government is focusing on improving the quality and effectiveness of Vocational High Schools. One of many efforts conducted is transforming vocational schools into vocational school-based enterprises. This study aims to analyze the factors influencing the effectiveness of vocational school-based enterprise management through the implementation of School Governance and Total Quality Management. This study used quantitative and qualitative approaches and PLS-SEM analysis, AHP, and ISM techniques. Questionnaires were distributed to 231 respondents from students, teachers, principals and committees in 25 vocational school-based enterprises in East Java and DKI Jakarta. The results of PLS SEM analysis demonstrated valid, consistent and good modeling. Furthermore, TQM showed a significant and positive effect on SG with R2 of 80.2 percent. Consequently, SG and TQM also had a positive and significant effect on improving the effectiveness of vocational school-based enterprise management with R2 of 92.2 percent. In addition, the strategy reveals an increase in the effectiveness of vocational school-based enterprise based on AHP by increasing the implementation of SG through adding criteria for strong and firm leadership in the human resources in vocational school-based enterprise. Meanwhile, based on ISM result, by increasing TQM as the key factor has the greatest driving force before improving SG. It is recommended to devise a strategy that could help to increase the effectiveness of managing vocational school-based enterprises.