Internal Control, Organizational Commitment and Performance of

Sasirangan Small and Medium Industries in South of Kalimantan

Indonesian

Khuzaini, M. Zainul, and Rizqan Abrari

Kalimantan Islamic University, South Borneo, Indonesia

Keywords: Internal Control, Organizational Commitment, SMI Performance.

Abstract: The type of research conducted in this research is quantitative research which aims to explain the partial and

simultaneous relationships between variables through testing hypotheses. The sample of this study was SMI

(Small and Medium Industries) of Banjamasin Sasirangan in South Kalimantan, namely 35 units of SMI

Sasirangan. The results of this study indicate that the results of the validity and reliability test of all

instruments in the variables are significantly related and reliable and also have been tested for classical

assumptions consisting of Normality Test, Multicollinearity test, and Heterocedasticity Test, which shows

no deviation. The analysis technique using Multiple Linear Regression Method is carried out in this study,

and can be concluded that Internal Control and Organizational Commitment simultaneously have a

significant influence on the SMI Performance in the city of Banjarmasin, as for the magnitude of the

influence can be seen from the terminated coefficient or r2 = 0.169.

1 INTRODUCTION

The success of a company in carrying out its

business activities can be measured through its

performance. Performance can be interpreted as the

development of achievements or results that have

been achieved by the company during operation,

both achievements in the financial and non-financial

fields (Boso, et al. 2013). And according to (Hafeez,

et al. 2011) performance is seen as a concept used to

measure the extent to which market achievements

have been achieved by a product produced by a

company. In order to achieve good performance

again satisfying the company, it is demanded to have

an advantage in competition in order to be able to

outperform the competition in its business

environment. Of course, to maximize performance,

there needs to be internal control of a company. This

is reinforced by Nugroho Widjayanto (1985:4)

internal control is a system that is interwoven in the

organization by applying various methods and other

benchmarks with the aim of running activities

according to what is outlined . This statement was

reinforced by the AICPA (American Institute of

Certified Public accountants) in Wilopo (2006: 349)

explaining that internal control is very important,

among others, to provide protection for the entity

against human weaknesses and to reduce the

possibility of errors and actions that are not in

accordance with the rules. Managing and

implementing good internal control will make it

easier for a company to achieve its objectives.

Internal control has a significant effect on company

performance. Explicitly to improve the performance

of companies other than through internal control also

needs to be supported by Organizational

Commitments. Robbins (1989).

Organizational commitment according to

O'Reilly (1989) is as a person's psychological bond

to the organization which includes work

involvement, loyalty and a feeling of trust in

organizational values. Furthermore according to

Luthans (2006) strong desire to remain as a member

of a particular organization, the desire to strive

according to the wishes of the organization and

certain beliefs also accept the values and goals of the

organization. Organizational commitment can also

be considered as a key aspect of company

performance Greenberg and Baron (2003: 160).

Organizational commitment also facilitates

faithfulness in the work as well as acceptance of

organizational values and goals to improve company

performance. Seeing the strength of the results of the

536

Khuzaini, ., Zainul, M. and Abrari, R.

Internal Control, Organizational Commitment and Performance of Sasirangan Small and Medium Industries in South of Kalimantan Indonesian.

DOI: 10.5220/0009023600002297

In Proceedings of the Borneo International Conference on Education and Social Sciences (BICESS 2018), pages 536-543

ISBN: 978-989-758-470-1

study of the influence of internal control and

organizational commitment on the performance

above, the researchers are motivated to review the

effect of internal control on the performance of

SMIs, the influence of organizational commitment

on the performance of SMIs, so that a research

model that integrates SMI Performance variables is

built. the development of Sasirangan SMI in South

Borneo, especially the city of Banjarmasin is quite

small. Because of the tightness faced by South

Kalimantan Sasirangan industrial companies

triggered by weaknesses to compete with similar

products. Admittedly, the Sasirangan industrial

business in South Borneo, especially in

Banjarmasin, still has many weaknesses, among

others, the ability to compete with other batik

products classified as still low, especially batik

products that have Sasirangan motifs from China.

When compared with batik products from China the

price and quality of the South Kalimantan

Sasirangan are still far behind. Made batik from

China has better quality and cheaper price, this is

because the artificial batik products from China the

production process has used more modern

technology, namely by using a printing machine so

that the production process can run very quickly,

certainly more time efficient, and can produce more

quality batik products with more quantities

compared to the results in South Borneo.The product

of South Borneo Sasirangan, the production process

still uses the old method, aka it is still very

traditional and manual, so that the production

process is slow and inefficient. The quality produced

by SMI Sasirangan in South Borneo has not met the

standard quality, the motives between the one

product and the other products are of varying

quality. And also the low competitiveness of

Sasirangan SMIs in South Borneo was triggered by

the weak ability possessed by Sasirangan batik

businessmen to find out the changes in customer

interest in the motives and quality of Sasirangan,

thus resulting in the difficulty of producing the truly

SMI industry in South Borneo. according to what the

customer wants, and results in reduced customer

satisfaction. While the desire to make changes to the

production process by shifting from more traditional

manual methods to more modern ways of using

printing machine technology has not been done so

far, due to the limited capital possessed and to

maintain the authenticity of Sasirangan South

Borneo fabrics.

From the phenomena above, the problems to be

examined in this study are to examine the extent to

which the efforts carried out or carried out by SMI

Sasirangan in increasing their superiority in

competing in order to improve their business

performance through Internal Control and

Organizational Commitment. Due to the competitive

advantage is the most important thing in the business

world for the company to outperform the

competition with its competitors. And competitive

advantage can be produced by good performance.

Therefore, to have an advantage in competing and

maximum performance, the company needs to

conduct Internal Control activities to be more careful

in production, which is more efficient in all things,

and obtain accurate information, especially knowing

the types and criteria that consumers want, knowing

weaknesses and strengths. strategies used by

competitors in the face of competition. In addition,

the company's performance also needs to be

supported by organizational commitment because

through organizational commitment loyalty will be

prioritized in fulfilling the company's vision and

mission, his love of the company will make a

positive contribution to its performance that will

create new products that are more unique, more

eifsien and more quality so that the creation of

excellence in competition in the business

environment.

2 METHODOLOGY

2.1 Population

The population in this study is SMI Sasirangan in

the city of Banjarmasin. So based on the criteria the

number of population distribution of SMI

Sasirangan in Banjarmasin is 54 business units, and

taken as many as 35 business units.

2.2 Type of Research

The type of research used in this research is

explanatory research which is a study of things that

are still unfamiliar. Where researchers are not

familiar with the problem under study. According to

Umar (1999: 36) explanatory research (explanatory

research) is a research that aims to analyze the

relationships between one variable and another or

how a variable influences other variables. The

research method used is the survey method, through

this method the data is collected based on the

respondent's answers to the list of questions that the

researcher submitted through filling out the

questionnaire.

Internal Control, Organizational Commitment and Performance of Sasirangan Small and Medium Industries in South of Kalimantan

Indonesian

537

2.3 Data Collection Technique

A number of written questions or statements about

factual data or opinions relating to the respondent's

self, which are considered facts or truths that are

known and need to be answered by the respondent. In

general, the purpose of using questionnaires or

questionnaires in research is to collect a number of

information relevant to the needs. Of course the

questionnaire requires a measurement scale in each

question. The measurement scale used by researchers

to measure each variable is a 1-5 Likert scale. The

Likert scale generally uses scale points and the

degree of agreement strongly disagrees until it agrees

strongly. In this study used the assessment range 1 to

5, with an explanation 1 = Strongly Disagree; 2 =

Disagree; 3 = Hesitate; 4 = Agree; 5 = Strongly

Agree.

Then, data collection by conducting direct

interviews with SMI leaders in the batik industry

Sasirangan in Banjarmasin which were used as

respondents in this study by asking systematic

questions.

Observation, is one of data collection technique

used, where researchers make observations directly

to the object of research to see closely the activities

carried out (Riduwan, 2004: 104). Collecting data by

making direct observations with the SMI of the

Sasirangan batik industry in the city of Banjarmasin

which was used as respondents in this study.

2.4 Data Analysis Method

2.4.1 Classic Assumption Test

Data Normality Test aims to find out that the data

collected is normally distributed or not. Can be

known the sample taken from a population that is

normally distributed or not. If testing is normal, the

results of statistical calculations can be generalized

to the population. Normality test in this study can be

used Kolmogorovosmirnov test, the criteria are

significance for one-sided test results of calculations

greater than 46> 0.05 means normal distribution.

Data Normality Test is conducted with the SPSS

version 20 program.

Multicollinearity test aims to test whether the

regression model found correlation between

independent variables. To detect the presence or

absence of multicollinearity is done by looking at

the value of Tolerance Value and Variance Inflation

Factor (VIF). Tolerance Value measures the

variability of selected independent variables that are

not explained by other independent variables. So, a

low tolerance value equals a high VIF value because

VIF = 1 / Tolerance Value). The value commonly

used to indicate the existence of mulitkolonieritas is

the value of Tolerance Value <0.01 or equal to the

value of VIF> 10 so there is no multicolinerity

between the independent variables (Imam Ghozali,

2009: 96). The Multicollinearity Test is carried out

using the SPSS version 20 program.

Hiteroskedasticity test

This method is by looking at the scatterplot

graph between the standardized predicted value

(ZPRED) and the residual studentized (SRESID).

There is no particular pattern on the scatterplot

graph between SRESID and ZPRED where the Y

axis is Y which has been predicted and the X axis is

the residual (Y prediction - Y is real).

2.4.2 Regression Analysis and Multiple

Regression Analysis

In conducting regression analysis in this study, the

results obtained from the questionnaire were

processed using statistical tests. The statistical test

used is regression analysis and multiple regression

techniques using the SPSS Version 20 program.

With multiple regression equations, namely:

Y = α + β1X1 + β2X2

Where :

Y: Performance of SMIs

X1: Internal Control

X2: Organizational Commitment

β: Regression coefficient

α: Constants

2.4.3 Hypothesis Test

In testing the hypothesis in this study, the results

obtained from the questionnaire were processed

using the F test and t test using the SPSS Version 20.

F test aims to test the hypothesis whether there is a

significant influence between internal control and

organizational commitment to the performance of

SMI simultaneous, while the t test aims to test the

hypothesis whether there is a significant influence

between internal control and organizational

commitment on the performance of SMI partially.

BICESS 2018 - Borneo International Conference On Education And Social

538

3 RESULTS AND DISCUSSION

3.1 Normality Test

The normality test is displayed in the following

image fields:

Figure 1. Histogram diagram

By looking at the graph display of the histogram

and the normal graph the plot can be concluded that

the histogram graph displays a distribution pattern

that is near normal. Whereas in the normal graph the

plot shows points spreading around the diagonal

line, and its distribution follows the direction of the

diagonal line. These two graphs show that the

regression model is appropriate to use because it

meets the assumption of normality.

3.2 Multicollinearity Test

Multicolonearity test is used to test whether the

regression model found a high correlation between

independent variables. A good regression model

should not have a high correlation between

independent variables. The multicollinearity testing

method used in this study is by looking at the value

of Inflation Factor (VIF) and Tolerance in the

regression model. If the VIF value is less than 10

and Tolerance is more than 0.1, then the regression

model is free of multicolonearity. The results of the

Multicollearance test can be seen in Table 5.1 below

Table 1. Multicollerity Test

Based on table 1 above shows the VIF value of

3.849 is less than 10 for both variables, it can be

concluded that the regression model does not occur

multicollinearity problems.

3.3 Hiteroskedasticity Test

Hiteroskedasticity can be detected by looking at the

plot graph between the dependent variable predictive

value (ZPRED) and the residual (SRESID).

Detection of the presence or absence of

hiteroskedasticity can be done by looking at the

presence of a particular pattern and the scatter plot

graph between SRESID and ZIPRED where the Y

axis is Y that has been predicted, the X axis is the

residual (Y prediction - real Y) that has been on

studentizet. Can be seen in Figure 2 below.

Figure 2. Scatterplot diagram

Internal Control, Organizational Commitment and Performance of Sasirangan Small and Medium Industries in South of Kalimantan

Indonesian

539

Based on the scatter plot graph above, it can be

seen that the points spread randomly and spread both

above and below the 0 in the Y axis field. It can be

concluded that there is no heteroskadestisias in the

regression model, so that the appropriate regression

model is used to predict the performance.

3.4 Hypothesis Testing

Table 2. Results X1 Against Y

Table 3: Results of X2 against Y

Table 4. Results of X1 and X2 against Y.

Coefficients

Model

Unstandardized Coefficients

Standardized

Coefficients

t Si

Correlations

B Std. Erro

Beta Zero-orde

Partial Part

1 (Constant) 8,149 4,782 1,704 ,098

Pen

endalianInternalX1 ,187 ,213 ,163 ,879 ,386 ,315 ,153 ,142

KomitmenOr

anisasiX2 ,369 ,226 ,304 1,634 ,112 ,386 ,278 ,263

a. Dependent Variable: KinerjaY

Table 5. Hypothesis Results

No Hypothesis r

count

table

Information

1 Internal ControlSMI Performance 0,099 3,501 1,689 Significant

2 Organizational Commitment SMI

formance

0,149 2,136 1,689 Significant

3 Internal Control and Organizational

mmitmentSMI Performance

0,169 F

count

3,849

table

3,28

Significant

BICESS 2018 - Borneo International Conference On Education And Social

540

Based on table 5. above can be explained the results

of testing the hypothesis as follows:

1) Hypothesis one (H1) is accepted, which means

that Internal Control significantly influences the

Performance of SMI, at 9.9% and the remaining

90.1% Performance of SMI is influenced by other

factors

2) The second Hypothesis (H2) is accepted, which

means that the Organizational Commitment

significantly influences the performance of the SMI,

by 14.9% and the remaining 85.1% The performance

of the SMI is influenced by other factors.

3) Third Hypothesis (H3) is accepted which means

that Internal Control and Organizational

Commitment significantly influence the

performance of SMI, by 16.9% and the remaining

83.1% The performance of SMI is influenced by

other factors.

The researcher realizes that in this study there are

still shortcomings due to the limitations of

researchers, as this study uses limited research

subjects, namely the Banjarmasin Sasirangan SMI as

many as 35 units. Another limitation is the variables

studied are only three variables, namely Internal

Control, Organizational Commitment and Company

Performance.Therefore, caution is needed in

generalizing the results of this study under different

conditions and subjects.

This research concerning the influence of

Internal Control, Organizational commitment to

Company Performance is still possible to be further

developed in future research. The things that might

be developed are further research can add variables

that affect performance such as leadership style,

compensation, motivation variables which

empirically proved to have a significant influence on

the company's performance and add the number of

respondents and indicators.

The results of this study can at least be an input

for the Banjarmasin city Sasirangan SMI in order to

improve the performance of companies in

Banjarmasin.

4 CONCLUSIONS

Partially the influence of Internal Control on

Banjarmasin City SMI Performance based on the

calculation of correlation (r) of 0.315, it can be stated

that the relationship between Internal Control and

SMI Performance is positive. From the calculation of

statistical t test the value of t count is 3.501 and when

compared with t table of 1.689 it can be stated that t

count> t table then H1 is accepted and H0 is rejected,

this means there is a significant influence, so that

Internal Control is stated to have a significant effect

on the performance of Sasirangan SMI. Partial

internal control has a significant effect on the

acceptable performance of SMIs and Banjarmasin

city SMI Sasirangan must maintain indicators in

forming Internal Control especially in monitoring the

production process at all times and the company

owner must carry out these activities, so as to

encourage the Performance of Sasirangan SMI.

These results support Mulyadi's (2013: 164) theory

that checking accuracy and monitoring can drive

efficiency and encourage compliance with

management policies.

Partially the influence of Organizational

Commitment to Banjarmasin city SMI performance

based on the calculation of correlation (r) of 0.386, it

can be stated that the relationship between

Organizational Commitment and SMI Performance is

positive. From the calculation of statistical t test the

value of t count is 2.136 and when compared with t

table of 1.689 it can be stated that t count> t table

then H1 is accepted and H0 is rejected, this means

there is a significant influence, so stated

Organizational Commitment has a significant effect

on the performance of Sasirangan SMI. SMI

Banjarmasin Banjarmasin city must maintain the

indicator Organizational Commitment in forming

pride in having a company that emphasizes culture

and the company owner must carry out these

activities, so as to encourage the Performance of

Sasirangan SMI. These results support the theory of

Luthans (2006) that Organizational Commitment is a

strong desire to accept organizational values and

goals.

Simultaneously Internal Control and

Organizational Commitment to the performance of

the Banjarmasin Sasirangan SMI based on the

calculation of correlation coefficient (r) of 0.411, it

can be stated that the relationship of Internal Control

and Organizational Commitment to the Performance

of SMI is quite positive. From the statistical

calculation, Analysis of Variance Test (ANOVA) is

known that Fcount = 3.849 compared with F0.05, 35

= 3.28 then Fcount> F0.05; 35, then H3 is accepted

and H0 is rejected, this means that there is a

significant influence, so it can stated that Internal

Control and Organizational Commitment

simultaneously have a significant effect on the

Performance of SMI. The results of this study

support the results of previous studies such as Nanda

(2014), Airin Novi Aryati (2016), and Ananta Budi

Lasso (2016) that Internal Control and

Internal Control, Organizational Commitment and Performance of Sasirangan Small and Medium Industries in South of Kalimantan

Indonesian

541

Organizational Commitment simultaneously have a

significant effect on performance.

The researcher tries to provide suggestions as

input and consideration for the Banjarmasin city

Sasirangan SMI and the development of

Management Science especially Human Resource

Management and is expected to be useful for the

present, as well as the future, as for the suggestions

as follows: (1) SMI Sasirangan, Banjarmasin city

must improve its Internal Control, in accordance with

a clear vision and mission that makes the company

become professional in producing products that

increase consumer interest; (2) SMI Banjarmasin

Banjarmasin city should improve the Commitment of

Organization, with emotional involvement,

organizational goals and a re-understanding of the

values of this Organization will rebuild a better SMI

Sasirangan Performance.

For the next researchers who will conduct similar

research are expected to take other variable indicators

and in the next stage in collecting data besides using

by distributing questionnaires or questionnaires, can

also directly interact with company owners through

direct interviews in order to sharpen the analysis

results and discussion.

REFERENCES

Alfani.H.M, & Prima.F.J, 2014, Filsafat Ilmu &

Metodologi Penelitian, Adi Prima Jaya Komputer :

Banjarmasin.

Amstrong, Mischael, 1999. Manajemen Sumber Daya

Manusia. Terjemahan

Sofyan dan Haryanto. Jakarta : PT. Elex Media

Komputindo.

Airin, N.A. 2016. Pengaruh Pengendalian Internal Dan

Komitmen Organisasi Terhadap Kinerja Karyawan

Pada PT. PEGADAIAN (Persero) Cabang Sragen.

Naskah Publikasi

Augusty F. 2006. Metode Penelitian Manajemen.

Pedoman untuk Penulisan skripsi,Tesis dandesertasi

Ilmu Manajemen. Badan Penerbit Universitas

Diponegoro : Semarang.

Bambang,H. 1999. Sistem Pengendalian Internal.

Yogyakarta: BPFE

Bangun & Wilson. 2012. Manajemen Sumber Daya

Manusia, Erlangga, : Bandung

Dewi, S.P. 2012. Pengaruh Pengendalian Internal Dan

Gaya Kepemimpinan Terhadap Kinerja Karyawan

Pada SPBU Yogyakarta. Jurnal Nominal 1 : 1

Ganie, T. N. 2014. Sasirangan Kain Khas Tanah Banjar.

Kalimantan Selatan :Tuas Media.

Hanafi, B.D. & Yohana, C. Pengaruh Motivasi, dan

Lingkungan Kerja, Terhadap KinerjaKaryawan,

dengan Kepuasan Kerja sebagai Variabel Mediasi

Pada PT. BNI LIFEINSURANCE. Jurnal Pendidikan

Ekonomi dan Bisnis 5 : 1

Luthans, F. 2005. Organizational Behavior. New York:

McGraw-hill.

Mangkunegara, Anwar P. 2002. Manajemen Sumber Daya

Manusia. Bandung : Remaja Rosdakarya

Mathis, R.L. & J.H. Jackson. 2006. Human Resource

Management: Manajemen Sumber Daya Manusia.

Terjemahan Dian Angelia. Jakarta: Salemba Empat.

Masrokah. 2012. Pengaruh Motivasi, Kepuasan Kerja dan

Lingkungan Kerja Terhadap Kinerja Pegawai Kantor

Kelurahan Kedungsoko, Kecamatan Tulungagung,

Kabupaten Tulungagung

Meyer, J.P & Allen, N.J. 1991. A three component

conceptualization of organizationalcommitment

Human Resource Management Review 1, 6189.

Mooday, R.T. Porter, L.W. & Steer, R.M. (1982).

Employees organization linkages. NewYork:

Academic Press

Nanda. 2014. Analisis Pengaruh Motivasi Kerja,

Pengendalian Internal dan Komitmen Organisasi

Terhadap Kinerja Karyawan. Studi Empiris Pada AJB

Bumi Putera 1912 Kantor Cabang Solo Gladag.

Nurandini, A & Lataruva, E. 2014. Analisis Pengaruh

Komitmen Organisasi Terhadap Kinerja Karyawan

Pada Pegawai Perum PERUMNAS Jakarta. Jurnal

Studi Manajemen & Organisasi 11 (2014) Juni 78 –

91 http://ejournal.undip.ac.id/index.php

Nurlaila, 2010. Manajemen Sumber Daya Manusia I.

Penerbit LepKhair

Pangestika, F. 2016. Pengaruh Pengendalian Internal,

Good Governance, dan Komitmen Organisasi terhadap

Kinerja Pegawai Keuangan Kabupaten Temanggung.

10 Jurnal Profita Edisi 8

Prawirosentono, S. 1999.

Kebijakan Kinerja Karyawan.

Yogyakarta: BPFE.

Rivai, Vethzal & Basri. 2005. Peformance Appraisal:

Sistem yang tepat untuk Menilai Kinerja Karyawan

dan Meningkatkan Daya Saing Perusahan. Jakarta:

PT. RajaGrafindo Persada.

Rudi Susanto. (2015). “Pengaruh Good Governance,

Pegendalian Internal, Komitmen Organisasi, dan

Pengelolaan Keuangan Daerah terhadap Kinerja

Manajerial Pemerintah Daerah”. Skripsi. Program

Studi Akuntansi Universitas Pembangunan Nasional.

Robbins, Stephen P., 1996. Perilaku Organisasi Jilid II,

Alih Bahasa Hadayana Pujaatmaka, Jakarta:

Prenhalindo

Robbins, Stephen P., 2006. Perilaku Organisasi, PT

Indeks, Jakarta : Kelompok Gramedia,.

Sarwono, J. 2006. Metode Penelitian Kualitatif dan

Kuantitatif. Yogyakarta, : Graha Ilmu

Sumantri, P.E. 2016. Pengaruh Motivasi Kerja dan

Lingkungan Kerja terhadap Kinerja Karyawan Pada

Usaha Penjualan Mobil Bekas di Kecamatan

Purwokerto Selatan Kabupaten Banyumas. Jurnal Pro

Bisnis 9 : 2.

Susilowati, Ifa. 2012. Pengaruh Motivasi Kerja Disiplin

Kerja dan Komitmen OrganisasiTerhadap Kinerja

BICESS 2018 - Borneo International Conference On Education And Social

542

Karyawan PT. Jasa Semarang. Jurnal Dinamika

Manajemen Fakultas Ekonomi Universitas Semarang.

Suyadi P. 2008. Sumber Daya Manusia Kebijakan Kinerja

Karyawan. Yogyakarta: BPFE

Zainul, H.M, 2016. Pengaruh Orientasi Pasar Terhadap

Pembelajaran Organisasi, Inovasi, Keunggulan

Bersaing Dan Kinerja IKM (Studi pada IKM

Sasirangan di Kalimantan Selatan). Naskah

Unpublish: Dissertation Universitas Brawijaya

Malang.

Internal Control, Organizational Commitment and Performance of Sasirangan Small and Medium Industries in South of Kalimantan

Indonesian

543