Study of Increasing Business Performance Through the SiFATI Approach and Its Implications in Business Conditions (Study of the Food Industry in Southeast Sulawesi Province)

Abstract

Empirical facts prove that a lot of the food industry in Southeast Sulawesi Province is unable to maintain its business continuity. Based on data from the Department of Industry and Trade of Southeast Sulawesi Province, in 2012 the number of food industries was recorded at 463 business units. This number became 452 business units, down 2.38 percent in 2013. Furthermore, in 2014 the number of food industries was recorded at 465 business units or an increase of 2.88 percent. Then in 2015 it became 417 business units or fell 10.32 percent and in 2016 it became 339 business units or down 18.71 percent. This means that there are 124 food industries unable to maintain their business continuity. Therefore this study aims to improve business performance through the SiFATI approach, namely: (1) Effect of business morals on the performance of the food industry. (2) Implications of business performance on business continuity. (3) The moderating effect of the policy of the Regional Government of Southeast Sulawesi in strengthening the influence of business morals on business performance. The method used in this study is the survey method, which is conducting a field survey of the food industry that was used as the research respondent in the Southeast Sulawesi Province with a sample of 150 business actors distributed in Kendari City and Baubau City. The data analysis technique uses (1) qualitative descriptive, (2) quantitative analysis with PLSSmart program tools. The results of the study concluded that business performance can be optimized or improved through the SiFATI approach. In this case: (1) Business morals have a significant positive effect on the performance of the food industry. (2) Business performance has significant positive implications for business continuity. (3) Southeast Sulawesi Regional Government policies can moderate the influence of business morals on business performance. Thus the factors that cause the inability of businesses to maintain the viability of their business are business morals, government policies, and business performance. Therefore the right approach model is the SiFATI model (Sidig, Fathanah, Amanah, Tabliq, Istiqamah).