THE INFLUENCE OF E-COMMERCE AND MOTIVE UPDATES ON SALES PERFORMANCE IN KENZA BATIK IN THE COVID-19 ERA

Mariyah Ulfa, Mohamad Ghozali, Saripah Fitriani

IAIN Syekh Nurjati Cirebon, Indonesia

Email: [email protected], [email protected], [email protected]

Abstract

This research was conducted at Batik Kenza, Trusmi Kulon Village, Plered District, Cirebon Regency. This study aims to analyze (1) the effect of e-commerce on sales performance at Batik Kenza in the era of the covid-19 pandemic. (2) the effect of the renewal motive on sales performance at Batik Kenza in the era of the covid-19 pandemic. (3) the effect of e-commerce and the renewal of motives together on sales performance at Batik Kenza in the era of the covid-19 pandemic. This study uses a quantitative descriptive approach with the type of field research. The subjects of this study were all employees who worked at Batik Kenza with the population in this study amounting to 30 employees of Batik Kenza. The number of samples in this study were 30 samples of Batik Kenza employees using a sampling technique, namely saturated sampling. The data analysis method used is descriptive analysis and multiple linear regression using IBM SPSS version 22. The results show that the e-commerce variable (X1) partially has no effect and is not significant on sales performance at Batik Kenza's business in the era of the covid-19 pandemic, this is because there is a price difference between the selling price in the shop/showroom which is cheaper when compared to the selling price in e-commerce. While the variable renewal motive (X2) has a partial and significant influence on the sales performance of the Batik Kenza business in the era of the covid-19 pandemic, this is because the renewal motive carried out by Batik Kenza is going very well. Simultaneously, e-commerce and renewal motives have a joint effect on sales performance at Batik Kenza's business in the era of the covid-19 pandemic

Keywords: covid 19; e-commerce; kenza batik

This article is licensed under a Creative Commons Attribution-ShareAlike 4.0 International

INTRODUCTION

The COVID-19 outbreak has the potential to change the world economic order marked by a change in the world trade map, in addition to causing the cessation of various business fields. It is certain that global trade performance will be disrupted due to the slow improvement in manufacturing, especially in China, which arrived just before the first half of this year. Coupled with the logistics distribution channel which is also disrupted by the negative impacts that will hit the Indonesian economy in the future (Supriyanto, 2020).

Indonesia is a country with a great diversity of arts and culture, one of which is batik culture. Based on etymology and terminology, batik is a series of words with ticks. Mbat if interpreted in Javanese is ngembat or throwing by repeating the throw, while tik comes from the word dot. So batik is repeating dots many times on the cloth (Musman & Aniri 2011).

Batik is a work of art on cloth with intricate coloring, using batik wax as ink to draw the motifs. Batik is a technique of decorating cloth using wax in the color dyeing process, where all the processes are done by hand, therefore batik can be called a handcrafted art. Batik art is a range of colors which includes waxing, dipping (staining) and stripping (heating/boiling) so as to produce smooth batik motifs, of course, requiring a high level of accuracy (Suliyanto, et al., 2015).

According to Rini in (Sugiharti, 2017), development in the industrial sector can help improve the quality and welfare of people's lives. Activities in this sector are inseparable from the positive increase in labor productivity. The craft industry that is known and still has a strong existence in Trusmi Kulon Village, Plered District, is the batik industry. There are 36 batik craft business units in Trusmi Kulon village, all of which have been registered as SMEs in the batik craft industry. The following is data on the batik business industry in Trusmi Kulon village, which already has capital and has located a batik showroom in Trusmi Kulon village, Plered district, as follows:

Table 1

Business/showroom industry data in Trusmi Kulon Village

Data source: Monograph of Trusmi Kulon Village, Plered District 2021

This development requires every batik entrepreneur to always try to improve and improve sales performance so that they can compete with other industrial business players, especially in this Covid-19 era. If the company survives at least in business competition, then the company must have more value. Like following today's modern trends of using digital business as an effort to prevent a decline in economic income. It can also improve the renewal of product innovations such as the batik motif (Indriyani, 2013).

With the development of the era that uses digital business as an effort to prevent decreased income, companies or MSMEs must be able to balance such as moving marketing and product sales strategies using e-commerce and other market places such as shopee, Tokopedia, Lazada and social media such as Instagram, Facebook, Twitter and so on. The e-commerce system with regard to digital transactions for various organizations and individuals (individuals), can reach consumers and the wider community so that it has the opportunity to increase market growth on its targets (Schneider, 2012).

The presence of an e-commerce system allows various micro, small and medium enterprises to enter the global market easily and even in real time. All business people with other actors and also have a direct relationship with consumers (Li & Hong, 2013). The e-commerce system as a form of progress in information technology has brought many changes, including lowering transaction costs between sellers and buyers, making transactions more practical, more alternatives and most importantly facilitating and expanding promotions.

Then success in achieving the goal of increasing the volume of buying and selling by changing the behavior of prospective consumers is the effectiveness of promotion on social media. The high number of social media users makes social media a platform that is considered effective for promotion and buying and selling (Uthami, 2020). Promotion is an overall system of business activities shown and carried out through the internet network. The use of promotional strategies through e-commerce will help improve sales performance during the Covid-19 pandemic, especially since industrial businesses must be able to keep up with the times.

Some of the obstacles to human resources in the development of batik are the low creativity and innovation of batik artisans, and therefore it is very influential on new innovations to renew batik motifs to become more attractive and more modern (Agnes, 2018). Besides that, there are several external factors that pose a threat to the decline sales performance with a lack of innovation and lack of digital business knowledge is very promising and likely to attract outside consumers.

In addition to price, another factor that influences purchasing decisions is batik motifs. The problem of the motif of a batik has become one of the factors that needs special attention from the product/new motif development team, because the intended target consumers are not a few who start to question the design problems of a product that is able to meet the needs and desires of consumers (Ilmaya, 2011). The design of batik products today is very diverse, considering the development of various consumer needs for product design.

Seeing the importance of knowing the role of E-Commerce and Motive Renewal on sales performance at Kenza Batik, on this occasion the researcher is interested in further examining this phenomenon with the following problem formulation:

1. Does e-commerce affect sales performance in the Batik Kenza business in the Covid-19 era?

2. Does the renewal of motifs affect sales performance in the Batik Kenza business in the Covid-19 era?

Do e-commerce and motive renewal affect sales performance in the Batik Kenza business in the Covid-19 era together?

RESEARCH METHODS

In this study, the researcher took the research location at Batik Kenza, Trusmi Kulon Village, Plered District, Cirebon Regency, this research was conducted to obtain the desired data. The time of this research was carried out for 6 months which will be carried out on 16 February - 16 August 2022.

In this study the authors used a quantitative approach method. Quantitative research is a type of research that produces findings that can be obtained using statistical procedures or other methods of quantification measurement (Sujarweni, 2021).

This research is included in the type of field research, namely research that aims to study intensively the background of the problems in the business under study. This study explores data sourced from a related company, namely Batik Kenza.

RESULT AND DISCUSSION

Characteristics of Respondents by Age

The age of the respondents referred to in this study is the age of the employees who work at Batik Kenza with a sample of 30 employees showing that the most age of employees is 20-25 years (70%) and the least is at the age of <20 years (3% ). Based on the description of the age of the employees at Batik Kenza, the age of the employees is included in the productive category.

Characteristics of Respondents Based on Gender

Respondents according to gender, it is known that respondents according to gender in this study were more female, where female sex totaled 25 people with a percentage of 83% and male sex amounted to 5 people with a percentage of 17%. It can be concluded that Batik Kenza employees are predominantly female.

Characteristics of Respondents Based on Education

Respondents according to last education, it is known that respondents according to gender in this study had more SMA-SMK education, where SMA-SMK education totaled 21 people with a percentage of 70%. For employees with the last elementary education there is 1 person with a percentage of 3%, for employees with the last junior high school education there are 6 people with a percentage of 20% and for employees with the last education Package-C and S-1 there are 1 person each with a percentage of 3%. . This means that the last education of Batik Kenza employees is dominated by high school-vocational high school education with a percentage of 70%. So it can be concluded that the average Batik Kenza employee is the last educated SMA-SMK.

Characteristics of Respondents Based on Length of Work

Respondents based on length of work, it can be seen that based on length of work for <1 year there are 5 people with a percentage of 17%, and based on length of work for 1 year there are 4 people with a percentage of 13%. For employees with a length of service of 2-5 years there are 11 people with a percentage of 37% and a length of service >5 years there are 10 people with a percentage of 33%. This can be interpreted that employees who are dominant in Batik Kenza have been working for 2-5 years.

The Influence of E-commerce and Renewal of Motifs on Sales Performance in Kenza Batik in the Covid-19 Pandemic Era

Based on the results of data processing using the help of the IBM SPSS version 22 program, a multiple linear regression equation is obtained, namely: Y = 18.180 + 0.052X1 + 1.179X2 + e. From the regression equation can be interpreted and conclusions are drawn as follows:

The constant value of this equation is 18.180, meaning that if there is a change regarding E-commerce (X1), Motive Renewal (X2) for Batik Kenza employees, Sales Performance (Y) is still 18.180.

The E-Commerce regression coefficient (X1) or β1 = 0.052 has a positive sign indicating that the E-commerce variable (X1) and Sales Performance (Y) have a unidirectional relationship. If there is an increase in the expenditure scale of the respondents, there will tend to be an increase in Sales Performance assuming the other variables are considered constant.

The coefficient of Motive Renewal (X2) or β2 = 1.179 has a positive sign indicating that Motive Renewal (X2) and Sales Performance (Y) have a unidirectional relationship. If there is an increase in the Motive Renewal scale from the respondent, there will tend to be an increase in Sales Performance assuming the other variables are considered constant.

Determination Coefficient Test (R2)

The magnitude of the coefficient of determination based on the Adjusted R Square value of 0.689 means that E-Commerce and Motive Renewal determine sales performance reaching 68.9% (0.689 x 100%) and the rest (100% - 68.9% = 31.1%) is determined by other variables outside this research model. The results of the coefficient of determination test mean that there are still other independent variables that affect sales performance at Batik Kenza in the Covid-19 era.

F Test (Simultaneous Test)

Based on the results of the analysis, the Fcount value is 34.497 while the Ftable value is 3.34. This value indicates that the Fcount > Ftable value is at the 95 confidence level with a significance value of 0.000, less than 0.05. From this test it can be said that there is a significant influence between E-Commerce and Motif Renewal together on Sales Performance at Batik Kenza in the co-19 era.

T Test (Partial Test)

Hypothesis 1, based on IBM SPSS version 22 calculations, shows that the tcount < ttable for the E-Commerce variable tcount is 0.417 while the ttable is 1.70329 and the significance value is 0.680 > 0.05, so H0 is rejected and Ha is accepted, which means that the E-Commerce variable is significantly partial does not affect the Sales Performance variable.

Hypothesis 2, based on IBM SPSS version 22 calculations, shows that the value of tcount > ttable for the Variable Renewal of Motives tcount is 7.026 while ttable is 1.70329 and a significance value of 0.000 <0.05, then H0 is rejected and Ha is accepted, which means that the variable Renewal of Motives is partially affect the Sales Performance variable.

The Effect of E-Commerce on Sales Performance at Kenza Batik in the Covid-19 Pandemic Era

Based on the results of research using IBM SPSS version 22 as described above, to determine the effect of using e-commerce on sales performance in the Batik Kenza business in the era of the Covid-19 pandemic and to find out whether it is significant or not shown by a comparison between t count and t table. In the t coefficients test table, the tcount value for the e-commerce variable is 0.417 and the Sig.count is 0.680. Based on these results, the tcount (0.417) < ttable (1.70329) means that H0 is rejected and Ha is accepted. This is followed by a significant value statement (0.680) > 0.05, then H0 is rejected and Ha is accepted. Which means that the e-commerce variable partially has no influence and is not significant on the sales performance variable at Batik Kenza in the Covid-19 era.

The use of e-commerce on sales performance in the Batik Kenza business during the Covid-19 pandemic did not really have an effect on the intensity of sales results during the Covid-19 pandemic. The results of this study are in line with research conducted by Deddy Prihadi and Agnes Dwita Susilawati in 2018 entitled "the effect of e-commerce capabilities and promotion on social media on marketing performance" which states that e-commerce capabilities are not partially significant to merchant marketing performance in Tegal City Morning Market. Thus the existence of e-commerce cannot always help sales or marketing performance.

The presence of e-commerce in this study has no effect on the sale of Batik Kenza in the era of the Covid-19 pandemic. direct showroom, the statement received a response as much as 50% answered disagree and received an unfavorable response. This shows that the selling price of Batik Kenza products is more affordable if purchased directly at the Batik Kenza shop/showroom when compared to selling prices in e-commerce which are slightly more expensive. That way, the sales of Batik Kenza during the Covid-19 pandemic are greater if purchases are made in stores/showrooms directly rather than sales in e-commerce. Consumers will prefer a more affordable price to buy an item. This is in accordance with the law of demand which states that the price of an item plays an important role in determining consumer demand for that item. All else being equal, the higher the price, the less consumers will buy the item. The lower the price of the item the higher the purchase for that item.

The Effect of Renewal of Motifs on Sales Performance in Kenza Batik in the Covid-19 Pandemic Era

From the results of research that has been carried out regarding the effect of motif renewal on sales performance at Batik Kenza in the Covid-19 era, it can be interpreted as influential, because based on the t coefficients test table, the calculated t value for the Motive Renewal variable is 7.026 and Sig. count as 0.000. Based on these results, the value of t count (7.026) > t table (1.70329) with this stated that H0 is rejected and Ha is accepted. This is followed by Sig. count (0.000) <0.05 then H0 is rejected and Ha is accepted. Which means that the Motive Renewal variable partially has influence and significance on the sales performance variable at Batik Kenza in the co-19 era.

The renewal of motifs is carried out by the Kenza Batik business as a form of creativity and innovation so that it is different from other types of batik in general and is able to compete with other batik products. A business requires a creative business by creating innovations and new ideas from the products offered. This research is in line with that carried out by Arif Sarifudin and Rejab Hamid in 2019 entitled "Analysis of the Influence of Product Innovation on Sales of Ende Ikat Woven Fabrics" which states that product innovation will affect sales.

According to Cahyo and Harjanti in 2013 innovation in a product has indicators which include (1) creating new ideas, (2) creating attractive designs, (3) adding new products, and (4) developing product quality. This is in line with the results of the descriptive analysis in table 4.6 above through the 7th statement item that Kenza Batik makes motif innovations from a combination of existing batik motifs with an average response of 4.67 in the very good category for creating new ideas and adding products by combining the types of motifs that already exist. In addition, through the 10th statement item that within a certain period of time Batik Kenza made new product types/shapes/motifs which received an average response of 4.03 which was in the good category. This shows that the majority of respondents or employees from Batik Kenza feel that they have provided good performance by developing products for Batik Kenza. Even Batik Kenza has provided attractive characteristics and uniqueness to the products on offer. Overall, the renewal of motifs in the Kenza Batik business during the Covid-19 pandemic was good.

The Influence of E-commerce and Renewal of Motifs on Sales Performance in Kenza Batik in the Covid-19 Pandemic Era

Based on the statistical test results, it is known that the e-commerce variable (X1) and motive renewal (X2) have a simultaneous positive and significant effect on sales performance (Y) in the Kenza Batik business in the era of the co-19 pandemic. Based on the results of the F test calculations in table 4.16 above, the F count is 34.497 and the F.

Therefore F count > F table (34.497 > 3.34) with a significant value (0.000 > 0.05), then simultaneously (together) the independent variables of e-commerce and renewal of motives have a joint effect on performance sales at the Kenza Batik business in the era of the co-19 pandemic. While the results of the test for the coefficient of determination (R2) obtained a coefficient value of 0.689, meaning that the influence of e-commerce and renewal of motives on sales performance is 68.9%, while the remaining 31.1% is influenced by other variables not included in the variables used in this study .

Thus the presence of e-commerce and renewal of motifs is able to support Batik Kenza's business during the Covid-19 pandemic to fulfill aspects of sales performance carried out by Batik Kenza employees in order to provide added value by implementing a sales system to compete with the various batik products offered by other batik entrepreneurs. This research is in line with research conducted by Mudrika Adriana in 2019 entitled "The Influence of Product Innovation and Utilization of E-Commerce on Marketing Performance at MSEs in the Culinary Sector in DKI Jakarta" which states that simultaneously (together) product innovation and utilization of e-commerce commerce has an effect on marketing performance. In the same way as this research, e-commerce and pattern renewal have a joint effect on sales performance in the Batik Kenza business in the era of the Covid-19 pandemic.

CONCLUSION

Based on the results of the data analysis that has been carried out, it can be concluded that from the results of testing the research hypothesis that there is no effect and is not partially significant between e-commerce on sales performance in the Kenza Batik business in the era of the co-19 pandemic. This means that the more often you use e-commerce in selling Batik Kenza products, the fewer consumers buy Batik Kenza products. This is evidenced by the value of the partial test results (t) which shows that t count is 0.417 < t table 1.703 and is significant 0.680 > 0.05. So that it can be stated that the hypothesis Ho is accepted and Ha is rejected which states that the effect of e-commerce on sales performance in the Batik Kenza business in the era of the Covid-19 pandemic was rejected based on the assumptions of the previous hypothesis. This happens because there is a price difference between the selling prices of Batik Kenza products in shops/showrooms which are much cheaper than selling prices in e-commerce so that consumers prefer to buy Batik Kenza products directly at the shop/showroom.

From the results of testing the research hypothesis that there is a partial and significant influence between the renewal of motives on sales performance in the Kenza Batik business in the era of the co-19 pandemic. This means that the more often motif renewal is carried out on Batik Kenza products, the more consumers are interested in buying Batik Kenza products. This is evidenced by the value of the partial test results (t) which shows that t count is 7.026 > t table 1.703 and is significant 0.000 <0.05. So that it can be stated that the hypothesis Ho is rejected and Ha is accepted which states that the effect of motive renewal on sales performance in the Batik Kenza business in the era of the co-19 pandemic is accepted based on the assumptions of the previous hypothesis. This happened because the statement on the motive renewal variable received a very good response from Batik Kenza employees. Overall, the renewal of motifs is a form of creativity and innovation carried out by Batik Kenza which is going very well, this is evidenced by the mean interval value of the average statement which is 4.36.

Based on the results of simultaneous testing (F) that the e-commerce variable and motive renewal (X2) simultaneously have a positive and significant effect on sales performance with an F calculated value of 34,497 > 3.34 and a significant value of 0.000 <0.05. Thus Ha stated that e-commerce and renewal of motives had an effect on sales performance at the Kenza Batik business in the era of the co-19 pandemic, so Ha was thus accepted. This shows that the increasing use of e-commerce and the updating of motifs that are carried out will affect sales performance in the Kenza Batik business in the era of the co-19 pandemic. The role of technology and forms of innovation will make sales increase.

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Copyright holders:

Mariyah Ulfa, Mohamad Ghozali, Saripah Fitriani (2022)

First publication right:

AJEMB � American Journal of Economic and Management Business