Actors’ Readiness Level in Industrial Revolution towards

Competitiveness using Canonical Analysis

Fivi Rahmatus Sofiyah, Yulinda, and Yetti Meliani

Department of Economic, Universitas Sumatera Utara, JL. Prof. T. M. Hanafiah, Medan, Indonesia

Keywords: Industrial, Revolution, Competitiveness, Industry, Medan

Abstract: This paper is aimed to analyze the readiness level in industrial with a case study: Medan Actors of Industrial.

The problem in this research is to analyze the elements of its aspect in getting the innovation. The data used

is primary data that have been obtained through 50 ones. Canonical Analysis is used to measure which core

variable indicated. From the results of this study that the market education for technology as well as regular

coaching that will make the industry more competitive in industrial revolution.

1 INTRODUCTION

Medan has the economic growth by 5.92% in 2018.

The three business fields that gave a dominant role to

the GRDP namely large and retail trade and repair of

cars and motorbikes at 24.96%, construction at

19.32%, and processing industries at 14.61%. For the

industry as the MSMEs actors become popular in

making the forum to empower the business

(https://medankota.bps.go.id, 2017)

MSMEs gets the progress in mindset training is

giving the empowerment, then the best mark attitudes

can create the get the result in private sector in the

financial technology to run the sustainable effort

(Syarifah & Putra, 2017).

Medan had many business actors to make the

business progress for making the creativity in

improving it. It had made the gathering to make the

best result for its economic growth that combined the

business one to make the good business education in

running the best one.

Business education can make the good midset

and research culture. It has made the newest idea to

make the best result in economic step and get many

results for civilizations. The community will be got

into the qualified product with the best one (Bati,et al,

2018).

As the good strategy in business development, it

make the local area power. It will be make only to

consume but also earn the product on the hobby

ability. They will get its best abilty in technology in

getting the youngsteers.

A good empowerment in getting in the young

generation will make the best innovation. It will

present with the solution in social media such as

instragram, facebook that can result them in the

selling performance for the financial strength

(Malawat & Putra, 2019).

Based on data explained with the business in

Sumatera Utara, researchers focus in making the the

research the gapura digital community which

implemented the its community for the best result in

empowering with the title " Actors’ Readiness Level

In Industrial Revolution Towards Competitiveness

Using Canonical Analysis ". The main issues that will

be analyzed are the extent to which the Gapura Digital

Medan Program to create business development or

income for its MSMEs member through instagram,

facebook and twitter as the e-commerce approacment.

2 LITERATURE REVIEW

2.1 E-Commerce Approach

The level of risk of work in the MSMEs is greater

than other industries which require employees to have

a high focus of their safety and need to make their

own stategy in business (Siagian & Putra, 2019).

The growth of MSMEs in the past monetary

crisis, has no effect of large ones especially about

exports focus. They get difficulty in competing in

reasonable economic conditions. It can be seen from

2007 to 2011 although there is an increase of export

Soﬁyah, F., Yulinda, . and Meliani, Y.

Actors’ Readiness Level in Industrial Revolution towards Competitiveness using Canonical Analysis.

DOI: 10.5220/0009197700150019

In Proceedings of the 2nd Economics and Business International Conference (EBIC 2019) - Economics and Business in Industrial Revolution 4.0, pages 15-19

ISBN: 978-989-758-498-5

amount is less result, They are important to face the

business level of the development in facing the

globalization era (Dilham & Putra, 2017).

Business ethics is necessary in getting many

customers. They will give the business result to as

the need for a best based on Research and

Development (R & D) program continuously so that

it can develop well in running the community (

Wahyuni & Putra, 2017).

There is a probabilty for human capital has a

significant factor the make the best target in

corporation. It is important to map the feasibility

study in order to be suitable in making their business

impact (Malawat & Putra, 2018).

2.2 Business Development

Realizing the best target of the company that can be

connected with the local people who later also

improved to the location prosperity. The main focus

is to make the MSMEs elements to improve the

process of community approachment (Putra & Ami,

2017).

It can improve a social economic condition that

can empower the region strength. With the

information obtained programmatically, that some

things for socioeconomic mapping has decision-

programmed with the structure of society (Dilham &

Putra, 2016).

The creative business start ups are necessary in

making the best capacity in making the economic

growth. The action in mapping the research and

development (R&D) about creating the new product,

will improve the employment productivity during the

best movement the newest firms in the local area

(Stam & Wennberg, 2009).

A strategy for making the best workforce to drive

best target for the corporates has become a best

activity. Firms will make the breakthrough

approachment. Human capital feasibilty mapping

programmes not only getting the best business targets

but the best result for the sustainable action (Maran,

et al, 2009).

3 METHOD

This research happened in Medan City by using the

population from Gapura Digital business forum who

have the willingness to conduct it for Revolution

Industry by purposive sampling of 50 samples

conducted from January to April 2019 based on the

activity made. For data analysis techniques requires

understanding of linear combinations are called

canonical variables because the dependent variables

are more than one and require understanding the

correlation value is called a canonical correlation.

The assumptions in Canonical Correlation, such

as :

 There is a linear relationship and correlation

between the dependent ones to the independent

ones.

 The need for multivariate normality to test the

significance of every canonical function.

 There is no multicollenearity between the

members of the dependent variable group against

the independent variables.

The variables taken are

 Independent variables represents instagram,

facebook, twiter

 The dependent variable is a value depends on the

change in the value of buisness development and

income

 The Pattern shows

Business

Development +

Income

= Instagram +

Facebook

+ Twitter

Metric Metric

4 RESULTS AND DISCUSSION

4.1 Descriptive Analysis

Gapura Digital Medan has the Program that supports

MSMES to advance business through digital. There

is a complete range of topics ranging from digital

trends, building business portals to SEO / SEM. We

can choose the desired topic or follow all the classes

to get a certificate from Google. There are free classes

that we can take with various topics to get to know

more about how to build a business digitally. These

classes are divided into three categories from digital

ready, digital reliable and digital professional. List the

class in the city we want

(https://gapuradigital.withgoogle.com/workshops/me

dan, 2019)

4.2 Quantitative Analysis through

Canonical Analysis

Because there are two dependent ones and three

independent ones, then if the smallest number is taken

the smallest one. Thus, two Canonical Functions will

be formed, namely:

EBIC 2019 - Economics and Business International Conference 2019

Eigenvalues and Canonical Correlations

Root No. Eigenvalue Pct. Cum. Pct. Canon

Cor. Sq. Cor

1 4.40602 99.23085 99.23085 .90279 .81502

2 .03415 .76915 100.00000 .18172 .03302

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - -

Dimension Reduction Analysis

Roots L. F Hypoth. DF Error DF Sig. of F

1 TO 2 .17887 20.46680 6.00 90.00 000

2 TO 2 .96698 .78549 2.00 46.00 .462

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- -

- - - - - - - - - - - - - - - - -

Two Canonical Functions are seen in the Root No

section, with canonical correlation numbers (Canon

Cor) for Function 1 is 0.90279 and Function 2 is

0.18172. It has been seen in the Sig. of F which tests

the significance of Canonical Function, seen for

function 1 is significant number 0,000, while for

function 2 is significant number is 0.462.

From these results, They can be seen that the

significant number function 1 is more than 0.05,

function 1 is significant individually and can be

processed next. For function 2, the input number is

less than 0.05 then function 2 is not able to be

processed further individually.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - -

Multivariate Tests of Significance (S=2, M=0, N=21 1/2)

Test Name Value Approx. F Hypoth. DF Error DF Sig.

of F

Pillais .84804 11.28807 6.00 92.00

.000

Hotellings 4.44017 32.56123 6.00 88.00

.000

Wilks .17887 20.46680 6.00 90.00

.000

Roys .81502

Note.. F statistic for WILKS' Lambda is exact.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - -

If they are tested together with the test name:

Pillais, Hotellings and Wilks for the Sig. of F for all

three procedures all under 0.05, namely 0.00, 0.00

and 0.00. Thus, the canonical function 1 and

canonical function 2 are significant and can be

processed further. There is a difference between

individual and collective testing. It can be seen in the

figures of Canonical Correlation that have

Eigenvalues and their tables, with numbers:

1. Canonical Correlation function 1 is 0.90279

2. Canonical Correlation function 2 is 0.18172

With a limit of 0.5 for the two-variable correlation

strengths, function 2 has a low canonical correlation,

so that it can be issued for further analysis. Thus, only

function 1 will be analyzed further, because besides

being individually and jointly significant, it also has

a high canonical correlation rate.

4.3 Canonical Variates Interpretation

Canonical variates is a collection of several ones that

make up a variat. In this case there are 3 canonical

variates namely dependent variate namely Business

Development and Operating Income. Then, They

have for the independent ones such as instragram,

facebook and twitter. They can be measured in two

ways:

1. Canonical Wights

For Dependent Variates:

- - - - - - - - - - - - - - - - - - - -

standardized canonical coefficients for dependent variables

function no.

Variable 1 2

business_dev .69408 -3.42658

income .31501 3.48195

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - -

For Independen ones

Raw canonical coefficients for COVARIATES

Function No.

COVARIATE 1 2

instagram .27050 1.07419

facebook .05668 -1.34604

twitter .09553 .12639

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - -

Standardized canonical coefficients for

COVARIATES CAN. VAR.

COVARIATE 1 2

instagram .66036 2.62235

facebook .12731 -3.02344

twitter .22448 .29699

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - -

Actors’ Readiness Level in Industrial Revolution towards Competitiveness using Canonical Analysis

Regardless of function 2 (the second column of

numbers), we can see a row of correlation numbers

between each variable. Two correlation numbers are

the same high, because above 0.5 that is 0.69408 and

0.31501. The independent ones (covariates),

correlation numbers above 0.5 are only X1, namely

instagram.

2. Canonical Loadings

For dependent variates:

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - -

Standardized discriminant function coefficients Function

No.

Variable 1

business_dev 1.47354

income -.70392

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

For Independent Variabel

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - -

Correlations between COVARIATES and canonical

variables CAN. VAR.

Covariate 1 2

instagram .99604 .06547

facebook .96018 -.27743

twitter .98009 -.03526

- - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - -

Not paying attention to function 2 (second digit

column), we can see a number of canonical loadings

between each variable with a function. For dependent

variables, a number of canonical loadings is business

development as well as for the independent one, the

correlation number above 0.5 is suitable for all such

as instagram, facebook and twitter.

4.4 Discussion

From the output of canonical weight or canonical

loading, we can analyze that:

1. There is a significant relationship between

dependent variables with independent variates or

Business Development. The main focus is to make

the Gapura Digital Medan elements to improve

with the information obtained programmatically.

The creative business forums are necessary in

making the best capacity. They will make the

breakthrough approachment for their

developments. The idea is suitable for (Putra &

Ami, 2017), (Dilham & Putra, 2016), (Stam &

Wennberg, 2009), (Maran, et al, 2009).

2. The 3 independent tend to the most closely related

among instagram, facebook and twitter.

A positive sign on indicates that the young

entrepenerus in Gapura Digital-assisted

companies are getting good e-commerce approach

in the opinion of (Siagian & Putra, 2019),

(Dilham & Putra, 2017), ( Wahyuni & Putra,

2017), (Malawat & Putra, 2018)

5 CONCLUSIONS

It can be decided that :

1. Gapura Digital Medan is MSMEs - assisted

which has the newset idea for e-commerce

innovation in coaching.

2. It will make the industry more competitive in

industrial revolution for the business development

as the result in canonical analysis

3. The variables such as instagram facebook and

twitter wil make the signicant factor for increasing

the readiness in industrial revolution 4.0

ACKNOWLEDGEMENTS

This research was fully funded by the research

institute of Universitas Sumatera Utara in accordance

with the contract of Talent Research in the year of

2019 with the number of contract 4167 / UN5.1.R /

PPM / 2017, 1

April 2019

REFERENCES

Ami, Dilham., Putra, M. Umar Maya. (2017). Socio

economic community mapping around Dumai Timur

(case study: Tanjung Palas Village). In IOP Conf.

Series: Earth and Environmental Science 126 (2018)

012085 (pp. 1–10). IOP. https://doi.org/10.1088/1755-

1315/

Bati, Putra, M. Umar Maya., & Sahla, H. (2018). Focus

Group Discussion For Young Entrepreneurs Training in

University Of Asahan, 200, 1–4.

Dian, Wahyuni., Putra, M. Umar Maya. (2017).

Entrepreneurship and Business Ethics in Civil Society

of Tinggi Raja District Asahan Regency. In M. H. Dr.

Rahmad Husein, M.Ed. Dra. Meisuri, M.A. Dr. Anni H.

Pulungan, M.Hum. Dr. Zulherman, M.M., M.Pd. Dr.

Wisman Hadi, M.Hum. Indra Hartoyo, S.Pd. (Ed.), The

Implementation Of Language , Literature , Art And

Cultural Studies In Strengthening The Nation ’ S

Civilization (pp. 255–259). Medan: Lembaga Penelitian

Unimed.

EBIC 2019 - Economics and Business International Conference 2019

Dilham, A., & Putra, Putra, M. Umar Maya. (2016). Social

Economic Community Mapping Around Binjai Utara (

Case Study : The People In Tandem Hilir ). In

Proceedings of the 1st Annual International Seminar on

Transformative Education and Educational Leadership

(AISTEEL) e-ISSN: 2548-4613 (pp. 600–607). Medan:

Unimed Press. Retrieved from

http://aisteel.unimed.ac.id/wp-

content/uploads/2017/05/ProceedingsAISTEEL_95.pd

https://gapuradigital.withgoogle.com/workshops/medan.

(2019). No Title.

https://medankota.bps.go.id/. (2017). No Title.

Malawat, M. S., & Putra, Putra, M. Umar Maya. (2018).

Review Of Implementation In Bunut Shoes Assistance

Program In Order Of Micro, Small And Medium

Enterprises Economic In Asahan Regency. In Journal

of Physics: Conference Series (Vol. 970, pp. 1–6). IOP.

https://doi.org/10.1088/1742-6596/970/1/012022

Maran, M., Lawrence, A., & Maimunah, I. (2009). Human

Capital Development and Its Impact on Firm

Performance: Evidence From Developmental

Economics. Journal of International Social Research,

2(8), 265–272. Retrieved from

http://scholar.google.com/scholar?hl=en&btnG=Searc

h&q=intitle:No+Title#0

Putra, M. Umar Maya., Ami, D. (2017). An Effectiveness

Analysis of Corporate Social Responsibility of

Empowerment Program in Terminal BBM Pertamina

Siantar (pp. 457–463). Unsyiah.

Saleh, Malawat, Putra, M. Umar Maya. (2019). Business

start-up empowerment in asahan district 1. In The 1st

Multi-Discipinary International conference University

Of Asahan2019 Thema: The Role of Science in

Development in the Era of Industrial Revolusion 4.0

based on Local Wisdom.” in Sabty Garden Hotel-

Kisaran North Sumatra, March 23rd, 2019 Business

(pp. 299–304). Kisaran: Universitas Asahan.

Siagian, H., Putra, M. Umar Maya. (2019). Review of

Human and Environment Factor in Implementing

Working Effectiveness, 208(Icssis 2018), 183–186.

Stam, E., & Wennberg, K. (2009). The roles of R&D in new

firm growth. Small Business Economics, 33(1), 77–89.

https://doi.org/10.1007/s11187-009-9183-9

Syarifah, T. (2017). Motivation And Entrepreneurs

Training For Tinggi Raja Society Of Asahan Regency,

104(Aisteel), 1–5.

Actors’ Readiness Level in Industrial Revolution towards Competitiveness using Canonical Analysis