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Applicant: DR. MULYANINGRUM

Please carefully read the Application Guide and the

Instruction Sheet for Application Form.

The Sumitomo Foundation

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THE SUMITOMO FOUNDATION

FISCAL 2015 GRANT FOR JAPAN-RELATED RESEARCH PROJECTS

Application Form

Application Date: 27 OCTOBER 2015

Dr. Kichizaemon Sumitomo

President

The Sumitomo Foundation Applicant Signature:

I hereby apply for a grant under this grant program as follows with a letter of recommendation.

Subject of Research Project

THE CHARACTERISTICS, ENTREPRENEURIAL ORIENTATION AND COMPETITIVE

RESPONSE IN THE JAPANESE FAST FOOD BUSINESSES AS INDONESIAN

FRANCHISE FOR FACING OF COMPETITION WITH FOREIGN FRANCHISE

Applicant

Name:

MULYANINGRUM SUDIBYO

(Given / First) (Middle) (Family / Last)

Birthday (M/D/Y):

11/10/1961 Age: 54 YEARS

Nationality:

INDONESIA

Home address (include postal code): JLN. ENDAHSARI I No. 8

CISARANTEN KULON, ARCAMANIK, BANDUNG, 40293

Tel: +6282110461461 Fax:

Affiliation (Department/Faculty/University/Research Institute, etc.):

STUDY PROGRAM OF MANAGEMENT - FACULTY OF

ECONOMIC – UNIVERSITY OF PASUNDAN – BANDUNG –

INDONESIA

Position / Job Title:

LECTURER

Address (include postal code): JL. TAMANSARI NO 6-8 BANDUNG

40116 - INDONESIA

Tel: +62224233646

Fax: +62224208363

Residence (other than home address, if any):

Tel: Fax:

Mailing address (Please circle the place where you wish to receive mail.)

1. Home address 2 . Affilia tion 3 . Residence

E-mail address: Can receive/send Japanese message

[email protected] (Please circle) Yes No

Applied Grant Amount

J¥ 600,000.00

←Please fill in the amount in Japanese yen or U.S. dollars.

The grant will be remitted to your bank account either in Japanese yen or in U.S. dollars, as applied for.

Research Duration

From (M/D/Y): April , 2016

Through (M/D/Y): March , 2017

←The Research Duration is one year from April 2016 through March 2017.

But, if required for fulfillment of the Research, it can be extended

by another one year maximum upon request.


Type of Research Project & Num. of Collaborator(s)

1.Individual research 2. Collaborative research

←Please circle 1. or 2.

Num. of Collaborator(s), if any : 3

←Please refer to the details on page 4 .

Curriculum Vitae of Applicant.

Education: (School) (Faculty/Department) (Year)

Academic degree(s): (Degree) (Field) (School) (Year)

DOCTORAL DEGREE EVIRONMENTAL ECONOMIC BOGOR AGRICULTURAL UNIVERSITY 2004

MASTER DEGREE GENDER AND DEVELOPMENT UNIVERSITY OF INDONESIA 1993

BACHELOR DEGREE MANAGEMENT JENDRAL SOEDIRMAN UNIVERSITY 1986

Professional experience (after education):

2013: Questioning Skill for Effective Teaching and Learning Course. University E-Learning Laboratory,

UTEM 24 April.

2013: Leadership Development Training in Learner’s Diversity Level 1. Akademi Kepimpinan Pengajian

Tinggi (AKEPT) – Bandar Enstek Negeri Sembilan, 17 – 19 April.

2013: Microsoft Visio 2010 Course. Human Resource Department – UTEM, 8 – 9 April.

2013: Presentation Skill Course. Center of Teaching and Learning – UTEM 21 March.

2013: Microsoft Publisher 2010 Course. Human Resource Department – UTEM, 18 – 19 March.

2013: Fundamentals of Curriculum Design and Development Course. Center of Teaching and Learning –

UTEM, 14March.

2013: Introduction to e-Learning Course. E-Learning Laboratory, UTEM, 20 February.

2013: Workshop “Guide to Getting Published”. Library - UTEM & Emerald Group Publishing Limited. 20

February.

2012: Training on Writing of Module and Book. Faculty of Technology Information – UTEM, 1 November.

2012: Training on Problem Based Learning (PBL). Center of Teaching and Learning – UTEM, 11 October.

2012: Training on Entrepreneurial Networking in Industrial Linkages: University – Industry Triple Helix.

Kementrian Pengajian Tinggi Malaysia, 3 – 4 September, Kampus AKEPT Negeri Sembilan.

2012: Outcomes-Based education Assessment, Closing the Loop. Center of Teaching and Learning – UTEM, 08

August.

2012: Adobe Captive Course. Human Resource Department – UTEM, 6 – 7 August.

2012: Application ICT in Teaching and Learning Workshop. Center of Teaching and Learning – UTEM, 25

July.

2012: Counseling in Teaching and Learning Workshop. Center of Teaching and Learning – UTEM, 18 July.

2012: Course of Microsoft Excel 2010. Centre for Research and Innovation Management - UTEM, 6 – 7 June.

2012: Course of Managing Effective Communication in Different Contexts. UTEM, 30 May.

2012: Course of Using Web 2.0 in Teaching and Learning. Center of Teaching and Learning – UTEM 23 May

2012: Managing effective Communication Course. Center of Teaching and Learning – UTEM, 10 May.

2012: Course of Statistical Package for the Social Sciences. Centre for Research and Innovation Management

UTEM, 17 – 18 April.

2012: Building Item Test based on Taxonomy Bloom. Center of Teaching and Learning – UTEM, 14 & 15 Mac.

2012: Impact factor Journal Workshop. Center of Research and Innovation Management – UTEM, 27 – 28

Januari.

2009: Learning Forum: Using Neuro Linguistic Program at Work. Bakrie Learning Centre, 26 October.


Awards (e.g., scholarships, fellowships, grants) and memberships:

SEARCA’s Graduate Study Program – PhD Scholarship

Language Ability (Evaluate by Excellent, Good, Fair and Non):

Language Reading Writing Speaking

Japanese NON NON NON

English EXCELLENT GOOD GOOD

Grants by Third Parties. In case that the applicant and/or collaborator(s) has/have ever received, or is/are to be awarded

with, or has/have applied to, or plan(s) to apply to a grant from other organization(s) than The Sumitomo Foundation with the

research same as or similar to this application, please fill in the following tab le.

Currency: J¥ or U.S.$

Name(s) of

Grant or

Other

Name(s) of

Applicant or

Collaborator(s)

Subject of Research

Duration of

Grant or

Other

Amount

Status

Please mark in the “Status” either: ◎Received, ○Awarded, △Applied, or ×Plan to apply

Special Research Field of Applicant

ENTREPRENEURSHIP, STRATEGIC MANAGEMENT, GENDER STUDIES

Major Academic Achievements of Applicant. Please fill in this form with major cases of articles or books published

during the last five (5) years and simplest descriptions thereof, and place a check (レ ) in the column preceding the entry for case(s)

connected with the Research Project.

Published articles

Subject: Sources of Innovation in the Industry Dynamics of Technological

Innovation Case of Procter & Gamble’s.

Brief description: Innovation can arise from many different sources.

The general sources of innovations are different changes in industry

structure; in market structure; in local and global demographics; in

human perception, mood and meaning; in the amount of already

available scientific knowledge, etc. Innovation can also come from

research efforts of universities, government laboratories and

incubators, or private nonprofit organizations. One primary engine

of innovation is firms. Firms are well suited to innovation activities

because they typically have greater resources than individuals and

management system to marshal those resources toward a collective

purpose. Procter & Gamble’s (P&G) is a global company that has a

successful innovation for their products that consuming by most

people in the world. This company consistently innovates in every

area business sector where they brands touch consumers’ lives: the

package and product, the shopping experience, the in-home product

usage experience, and every aspect of communication. P&G also

create innovative business models and organizational structures

whereby making the competitive advantages among the competitors.

By innovating so broadly, P&G get to see more innovation

opportunities and to leverage more innovation resources than more

narrowly focused competitors.

Date(M/Y): November/2013

Paper presented on

International Conference &

Carnival on Management

Systems (InCaMS) Centre for

Corporate Development and

Quality Management

(PUSPEK) UNIVERSITI

MALAYSIA PERLIS


√

Subject: Microbanking for Rural Entrepreneurship Development (Case of

Indonesian microenterprise)

Brief description: The awareness of the role of micro-entrepreneur as

one of the “backbones” of rural economy has increased. It is because

of the fact that micro-entrepreneur conduct income generation

activities for creating self-employment. More than 73% of

micro-entrepreneur especially in the rural faced financial problem.

They need credit but not apply because they do not have s ufficient

collateral or feel their enterprise does not qualify. Micro-banking

produces micro-credit as a financial innovation which originated in

developing countries such as Indonesia where it has successfully

enables extremely impoverished rural people to engage in

self-employment projects that allow them to generate an income, and

begin to develop entrepreneurship. Micro-banking work frequently

with government agencies, non-government agencies by providing

soft loan, and model program for developing entrepreneurship

among small enterprises, rural entrepreneur, and among the general

small-scale entrepreneur. In Indonesia, micro-banking begins to

build wealth and exit poverty among rural people.

Date(M/Y): February/2010

Paper presented on The 1st

International Conference on

Business- Banking and

Corporate Social

Responsibility University

network Conference. The 1st

ICBB and CSR-UN

Conference. University Sains

Malaysia (USM) & STIE

Perbanas Surabaya

√

Subject: Food Technology for Small Scale Economic Activities to Address the

Aim of Supporting Rural Entrepreneurs (Case Study on Food Processing

Industries in Malacca State)

Brief description: Small-scale food enterprises have played a very

important role in the Malaysian economy, particularly in terms of

employment generation, better income distribution and as a training

ground for rural entrepreneurs before they invest in larger

enterprises. There are more than 9000 food processing industries in

Malaysia, of which 95% are classified as small -scale. This paper

reviews the technology of food processing in Malacca State,

particularly which carried out by small-scale rural entrepreneurs,

often family business, with less than 20 workers. The importance of

small-scale food processing industries as a way of raising rural

incomes is discussed, and the major constraints faced by such

business. These include availability of technology, raw mater ials,

finance and marketing.

Date(M/Y): March/2008

Paper presented on

Malaysian Technical

Universities Conference on

Engineering and Technology

(MUCET 2008). School of

Manufacturing Engineering,

Universiti Malaysia Perlis

(UMP). Putra Palace Hotel,

Perlis, Malaysia

√

Subject: Women Entrepreneurs: Characteristics Tendencies on Managerials

Skills

Brief description: More information about women-owned business

enterprises is sorely needed to force policymakers to realize that

women are important human resources as an economic force to be

reckoned with. Recent surveys conducted in several countries

indicate that women-owned firms involved in the global market place

have greater revenues. It will be more optimistic about their

business prospects and are more focused on business expansions than

women-owned firm that are domestically oriented. International

trade has driven the growth of women entrepreneurship in many

countries. The global impact of women entrepreneurs is just

beginning to gain intensity. The number of female business owners

continues to increase steadily. The objectives of this study were to

identify the characteristic tendencies on managerial skills of women

entrepreneur in Melaka State. Those are as the qualities that

women business owners cite as key to their success in the ability to

focus intensely.

Date(M/Y): January/2008

1st Regional Conference on

Human Resources

Development (RESERD

“Gearing Dynamic Human

Capital”. Universiti

Teknologi Malaysia &

Terengganu Development

Institute (TDI)


Subject: Cyberfeminism: Changing Gender Inequality via Information

Technology.

Brief description: Cyberfeminism is a philosophy which acknowledges,

(firstly) that there are differences on power between women and men

specifically in the digital discourses; and (secondly) , that

cyberfeminist wants to change that situation. Cyberfeminists have

the chance to create new formulations of feminist theory and

practice which address the complex new social condition created by

global technologies. The e-media can be provided to encourage

women participation in the field of information and communication

technology. This paper aims to investigate in what ways the whole

range of internet can contribute to change gender inequality via

information technology. It was a part of techno-culture change

process among women. Cyberfeminism has makes it visible how

women worldwide are affected by new communication technologies.

This study has done by qualitative research with content analysis

approach.

Date(M/Y): November/2007

Paper presented on

International Conference on

Engineering & ICT. Universiti

Teknikal Malaysia Melaka

(UteM)

Published books

Title: Stress Management by Aromatherapy (A Chapter of Book)

Brief description: Stress can arise for various reasons, and everyone

would have experienced in everyday life. Sources of stress can come

from oneself, such as issues related to the state of household, marital

relationship, financial or otherwise. Another source of stress can

come from the environment in which to work. Stress can trigger

various diseases include allergies, respiratory disorders such as

asthma, bronchitis, sinusitis and sore throat, dizziness, headache,

migraine, vertigo, nausea, lethargy, not excited. Aromatherapy is

known as an alternative way to cure stress disorder, using fragrant

essential that the natural plant extracts of certain plants. This

method has been discovered 5000 years ago. Recent research proves

that the effects of perfumes can relieve stress, boost immunity and

induce a feeling fit and healthy.

Date(M/Y): June/2006

Publisher: PTS Professional

Publishing Sdn. Bhd. Malaysia

Collaborator(s). In the case of collaborative research ( ref. "Type of Research Project", page 1), please fill out this section.

Necessity of Collaborator(s): 3 persons

List of Collaborator(s)

Name

Birthday (M/D/Y)

Affiliation

Position/ Job Title

Education

Major role in the project

Rambat

Lupiyoadi,SE, ME

Dr. Heru Setiawan,

SE., MM

Wasito, SE., MSIE

02/28/1971

10/28/1964

02/15/1964

Economic Faculty –

University of

Indonesia – Jakarta


University of

Pasundan –

Bandung


University of

Pasundan –

Bandung

Lecturer

Secretary of

study

program of

management

Head of

study

program of

management

Master

degree

Doctorat

e degree

Master

degree

Entrepreneurship

Economic

Management


Concept of Research Project. Please fill in this column, explaining (i) particular motivations leading to the Research

Project, ( ii) the significance of the Research Project, and (iii) a comparison between this Research Project and other domestic or

foreign projects.

(Please use font size of 10-point or bigger.)

(i) PARTICULAR MOTIVATIONS LEADING TO THE RESEARCH PROJECT

Data Indonesian Franchise Association (Asosiasi Franchise Indonesia = AFI) said the

number of foreign fast-food franchises in Indonesia has increased, from 29 in 1990 to

350 in 2013, with a growth rate of 6-7 percent. The foreign franchises dominated by

fast food establishments of the United States such as Burger King, McDonald's,

Kentucky Fried Chicken, California Fried Chicken, Wendy's, A & W, Pizza Hut, and

Dunkin Donuts. One of the factors that influence the amount of interest in foreign

franchises to enter Indonesia is the size of the market opportunities that are still

available. Report of the Global Intelligence Alliance (GIA) said that Indonesia is one of

the top five major markets of the world, for the category of emerging markets in

2012-2017. Besides Indonesia is Brazil, India, China, and Russia.

But since the economic crisis of 1997 - 2001 the number of companies of foreign

fast-food franchises in Indonesia decreased -9.78%. This happens because of the decline

of the exchange rate of the rupiah against the dollar so that the cost for the franchise

fee and royalty fee in dollars to increase. In addition, the cost of raw materials,

equipment and supplies that must be imported from their home country to be very

high. On the contrary, at that time the number of local franchises for fast food has

increased by 30%. The economic crisis has resulted in many companies collapsed and

lay off employees. This situation becomes the driving force for the growth of local

franchises in the fast food business.

Type of fast food from the local franchise of the most in demand by consumers in

Indonesia is Japanese cuisine. This is because the type of Japanese food is very varied,

with more flavors to tastes of Indonesian people compared to the fast food of America.

In general, the local franchise selling various types of Japanese food that has been

modified both in taste and raw materials, so it is a mix between the original taste of

Japanese food and taste local cuisine, so it does not seem strange to the tongue of

Indonesia. In addition, a very interesting way of presentation in accordance with the

theme of Japanese food, raw materials are fresh and hygienic, and relatively affordable

price, has caused Japanese fast food of choice for the people of Indonesia.

According to data from http://www.streetdirectory.com/businessfinder/indonesia/ in

2015 the number of restaurants serving Japanese cuisine in Jakarta as many as 260.

Also from the http://www.plasafranchise.com mentioned that in 2015 there were 34

local franchises which serving Japanese fast food that had developed in Indonesia.

Based on the increase in Indonesia's economic growth in recent years, and the changes

in people's lifestyles are more like Japanese food fast, then it is possible there will be

the growing number of local franchise which serves Japanese cuisine.

A very important factor for the local franchise to develop a Japanese fast food business

is how to be able to face competition from foreign franchises. Therefore, this study is

very important as an effort to strengthen the characteristics and orientation of

entrepreneurship for SMEs as a local franchisor. This includes the management

structure, managerial ability, business motivation, relationship SME franchisors with

franchisees. In addition, it needs to be studied more in other characteristics of SMEs

are very influential in the success of a franchise business in its application, such as in

http://www.streetdirectory.com/businessfinder/indonesia/

http://www.plasafranchise.com/


the legal aspects of franchising, intellectual property rights, and a funding system that

would allow SMEs to actively participate in the economic development of Indonesia.

(ii) THE SIGNIFICANCE OF THE RESEARCH PROJECT

Based on data from the Franchise Industry Survey 2013 market size of the franchise is

known that Indonesia is Rp. 190 trillion. This figure is still low compared to other

countries, like the Netherlands and Taiwan. Market size franchise Taiwan in 2004

reached Rp. 136 trillion, with a population of 22.7 million (one tenth of the population

of Indonesia). Therefore, an important issue to be studied in this research is why the

performance of the local franchise is still low compared to other countries?

Furthermore, how the local franchise to compete with foreign franchises? This research

is expected to contribute theoretical and managerial aspect include:

1) Giving contributions to the development of the regulation of franchising and

SMEs in Indonesia with an investment-friendly policies for foreign franchisors

but still supports the development of SMEs as a local franchise.

2) Provide knowledge to banks in risk analysis as a process of SME funding and

coaching local franchise industry.

3) Giving contributions to SMEs as a local franchise, especially in the fast food

business Japan to face the global market of ASEAN Economic Community 2015.

4) Contribute ideas for policy makers to increase the economic resilience of the

Indonesian people, in order to take the positive aspects of the entry of foreign

franchises without ignoring the local franchise. These conditions will support

efforts to accelerate the transformation of the national economy as mandated in

the Master Plan for the Acceleration and Expansion of Indonesian Economic

Development (Masterplan Percepatan dan Perluasan Pembangunan Ekonomi

Indonesia = MP3EI) and National Long Term Development Plan (Rencana

Pembangunan Jangka Panjang Nasional = RPJPN tahun 2005-2025).

(iii) COMPARISON BETWEEN THE RESEARCH AND OTHER PROJECT

Previous studies that specifically examined the association between the presence of

foreign franchise and entrepreneurial orientation, competitive responses as well as the

business performance of the local franchise is very limited. Especially in the fast food

franchise industry with the case in emerging markets such as Indonesia. Research

conducted by K. Ramakrisnan (2010) focuses on the competitive response and

performance of SMEs, while Richardson (2011) explore the characteristics and the

impact of franchising to local SMEs. Meanwhile Wiklund & Shepherd (2003) highlights

the role of entrepreneurial orientation on business performance. Nevertheless, the

third this past research has inspired more depth to look at the phenomenon of this

study is more accurate and more detailed.

Research conducted by Richardson (2011) explains that foreign franchise has three

important attributes, namely: (a) global brand image; (b) the quality of the product; (c)

local marketing strategies. For foreign franchises in the fast food business, global

brand image is measured by the following indicators:

(1) the introduction of consumers to a global brand;

(2) the association of consumers to the brand;

(3) consumer preference towards the brand; and

(4) the consumer's perception of the brand.


As for the quality of the product can be measured by indicators such as:

(1) operating system reliability;

(2) trained human resources;

(3) technology that accurately;

(4) outlets were clean and comfortable;

(5) The service is friendly and fast;

(6) The food menu standardized products and in accordance with customer wishes.

Local outlets for marketing aspect is measured by indicators such as:

(1) marketing decisions such as the selection of the product mix;

(2) variety of food products;

(3) the conformity of products with the needs of the food menu;

(4) the uniqueness of the food menu compared to competitor products;

(5) an appropriate price;

(6) the method of payment;

(7) the promotion of the product;

(8) sales promotion;

(9) public relations and direct sales;

(10) access to the site;

(11) outlets visibility and availability of parking.

Entrepreneurial orientation characterizes the strategic posture of their businesses

based on nine indicators. The results showed that the higher the score owned by

businesses, increasingly have a strategic posture that is entrepreneurial. Based on

previous studies, Wiklund (1999), Lumpkin & Dess, (1996); Miller & Friensen (1978),

Covin & Slevin (1989), this research using instruments Entrepreneurial Opportunity

(EO) with some adjustments that include dimensions of innovation, proactivity, and the

courage to take risks in the management of outlets.

Performance of local franchises linked to changes in sales turnover per month can be

seen from the number of total product sales, net profits, and the overall performance of

outlets within a month due to the emergence of foreign franchises around their

business location. This variable uses the measurement of subjective self-report as it

has done on previous studies by Dess & Robinson (1984), Venkatraman and

Ramanujam (1986), Conant et al. (1993), Yin & Zajac (2004), Wiklund & Shepherd

(2003). Respondents were asked about the growth of sales turnover, net profit, and

overall store performance (overall store performance) monthly after the foreign

franchises nearby.

Key word of Research Field of Application (Around 3 to 5 words)


Japanese fast food business; entrepreneurial orientation, competitive response, local franchise,

foreign franchise, SME franchisor


Methodology of Research Project. Please explain reasons for choosing this methodology as well as major research

materia ls to be investigated. If a visit to Japan is planned in the research project, please mention the name (s) of researcher(s) and

institu tion(s) in Japan to be visited.


Research objectives:

In general, this study aims to understand the competitive response of local franchises

in Japan fast food business in the face of competition from foreign franchises in similar

businesses. In addition, it is important to learn how the effects of a dynamic

environment with a competitor of foreign franchises around the location of the

performance of the local franchise. The research objective in particular is to produce a

study on the following matters:

What is the impact the presence of foreign franchises on the performance of the local

franchise?

1. How does the characteristics of foreign franchises on entrepreneurial

orientation, competitive response and performance of the local franchise.

2. How do the characteristics of foreign franchise and entrepreneurial orientation

of the local franchise of the local franchise competitive response either partially

or simultaneously.

3. How do the characteristics of foreign franchise, local franchise entrepreneurial

orientation, and competitive response to the performance of the local franchise of

the local franchise either partially or simultaneously?

4. How does the local franchise competitive response to the performance of the local

franchise.

5. How does the entrepreneurial orientation of the local franchise of the local

franchise competitive response?

6. How are characteristics of foreign franchise, local franchise entrepreneurial

orientation and the competitive response of the local franchise simultaneous

effect on the performance of the local franchise?

7. How is competitive response of local franchises affect the performance of the

local franchise?

8. How the characteristics of foreign franchises are directly affect the performance

of the local franchise?

9. How is the entrepreneurial orientation of the local franchise directly affecting

the performance of the local franchise?

Hypothesis

Based on the previous description, there is a difference between the establishment of a

stable environment and a strategy in a dynamic environment. According to Richardson

(2011), the presences of foreign franchises in emerging markets are competitive in

terms of its global brand image, product quality and local marketing strategies. This

phenomenon will change the business environment and competition in the local

franchise locations. These environmental changes require a competitive response from

local franchises in order to survive and improve its performance both from the aspect of

business strategy and operations. Competitive response f rom the local franchise will be

affected by the entrepreneurial orientation of the local franchise business owners.

Based on the above discussion, the research hypothesis can be formulated as follows:


Hypothesis 1:

Characteristics of foreign franchise and entrepreneurial orientation of the local

franchise simultaneous effect on the response of competitive local franchise.

Hypothesis 2:

Characteristics of foreign franchises partially positive effect on the response of

competitive local franchise.

Hypothesis 3:

Orientation entrepreneurial local franchise partially positive effect on the response of

competitive local franchise.

Hypothesis 4:

Characteristics of foreign franchises, entrepreneurial orientation of the local franchise,

and the competitive response of local franchises simultaneously affect the performance

of the local franchise.

Hypothesis 5:

Competitive response local franchise partially positive effect on the performance of the

local franchise.

Hypothesis 6:

Characteristics of foreign franchises partially negative influence on the performance of

the local franchise.

Hypothesis 7:

Orientation entrepreneurial local franchise partially positive effect on the performance

of the local franchise.

Hypothesis 8:

Characteristics of foreign franchise and entrepreneurial orientation of the local

franchise simultaneous effect on the performance of the local franchise.

Methodology

To achieve the research objectives as it has been formulated used two methods of

integrative research by combining qualitative and quantitative methods as proposed by

Scandura & Williams (2000). Qualitative methods such as focus group discussions

(FGD) and laddering. FGD were conducted in order to explore and confirm the

dimensions and indicators of the size of each study variable . Laddering is a technique

of in-depth interviews with current customers and non customers in order to explore

potential drivers on each variable, especially on the side of foreign franchises.

Quantitative methods such as descriptive and verification method that is designed to

use the nature of descriptive and verification. Descriptive research is research that

aims to obtain a description of an object, in this case the characteristics of the variable

itself the attributes of the presence of foreign franchises, entrepreneurial orientation,

competitive response and performance of the business. Verification research is research

that aims to determine the relationship between variables through hypothesis testing.

Operational Variable

This study focuses on four main variables. Variables local franchise business

performance, as the dependent variable (Z). Competitive response variable (Y), the

variable characteristics of the foreign franchises (X1) and entrepreneurial orientation

variable (X2).


Sampling Method

The research sample is taken from a population of local franchises of Japanese

fast-food, which in the same location of fast food foreign franchises. The local franchise

location in the same city as the foreign franchises in the control group, and franch ise

outlets have been operating in 2013. Jakarta and Bandung are the region with the

largest number of foreign franchises in Indonesia compared to other regions (AFI,

2013), and there is also a franchise Japanese local fast food the most.

The sampling method using a non-probability sampling technique with purposive

sampling method (Denzin & Lincoln, 1994; Sekaran, 2006). Foreign franchise in

question is foreign franchises (franchise) in the sectors of food & beverage (F & B),

namely fast-food restaurants such as McDonald's, KFC, A & W, Pizza Hut and others.

While local franchise is a Japanese fast food restaurant for instance Hoka-Hoka Bento,

Oishii Baagaa, My Bento, Takeshi Bento, Oya Bento, Oto Bento, Yoshinoya, My Baagaa,

Ikki Bento and Sushi, Sushi Tei, Caza Suki Restaurant, Yoshiku Bento, Furaibo Tebasakti

Chicken, Takoyaki Ai, Osaka Ramen, Furaibo Tebasakti Chicken, etc.

Age outlets considered to have an influence on the operational stability, new outlets

are still considered not sufficiently stable to evaluate how far the role of each variable

on the performance of outlets, so the sample is narrowed to the age of the local

franchise outlets at least three years. Based on additional data on the number of

foreign franchise outlets in 2013 as many as 50 outlets (Info Franchise and Business

Concept, 2013), then by using Slovin formula the required sample size is as much as

33. In the management of franchises usually there are some people who are responsible

in the management of stores, they are store manager, supervisor who oversees several

outlets in certain regions, and the operation manager. So in one unit of analysis will be

taken in three respondents as a unit of observation, so as the overall number of

respondents required a minimum of 99 (33 x 3) of the respondents in the group of local

franchise outlets treatment.

Analysis and Testing Hypotheses

In order to get answers to the problems and hypotheses, this study used a variety of

methods of data analysis. The main method is the path analysis or Structural Equation

Model (SEM) for the development of structural models. It also will be used to support

other analytical methods, namely multiple regression analysis and logistic regression,

analysis of DiD (Different in Different), cluster analysis and ANOVA addition to

descriptive analysis.

The use of SEM with the consideration that the study involves several variables

simultaneously (multivariate analysis), there are relationships between variables that

occur simultaneously. This method is very appropriate when the dependent variable

would be the independent variable in the next relationship. The relationship between

independent variables and the dependent variable like this, is the basis of SEM.

The use of multiple regression analysis to identify entrepreneurial capacity in the

variable Y is the competitive response of local franchises in influencing the

performance of the local franchise (Z) which is not identified in the analysis of SEM.

The use of cluster analysis for classifying and grouping the competitive response among

the local franchise (Y). The results are used for further analysis is there are differences

in the performance of businesses in the local franchise outlets among some groups such

competitive response using the non-parametric Kruskal-Wallis ANOVA.


Expected Results of Research Project. In addition to general contribution expected of the research project, p lease fill in

this column including media of publication, e.g., articles and books, and expected time of publication.


1) This research has many elements of novelty in previous studies. Research on the

franchise previously more focused on the corporate level, especially on the issue

of governance structure, whereas this research put more emphasis on the level of

stores (outlet) as the unit of analysis. This research is trying to understand what

affects the performance of the local franchise. Therefore, the results of this study

are very useful as an input for policy makers related to the development of SMEs

as franchisor. Results of this study will be published as a reference book of

relevant titles such as:

a) Various Japanese cuisine fast food

b) Development of SME franchisors

c) Strategy for the management of local franchisor in the face of competition

against foreign franchisors: a case study on fast food business

The estimated time for the publication of these books is not more than 7 months

of approval of the research proposal, which is in line with the preparation of the

periodic report of this study.

2) Research on foreign franchise in assessing the positive aspects of his role in

developing the local business supply chain related to their business as a supplier

of raw materials, labor, and property development. While on the impact on the

local franchise of a kind, is still lacking, especially in Indonesia. Therefore, the

results of this research will be pursued to be published in :

a) The International Journal of Franchising Law, Mailing Address Claerhout

Publishing Ltd. 6 Woodstock Avenue London W13 9UG United Kingdom.

Email: [email protected].

b) National accredited scientific journal SCOPUS: Gadjah Mada International

Journal of Business. Jl. Teknika Utara No. 1 Yogyakarta 55281, Indonesia

Phone:+62(274) 562222, 515536 ext.113, Fax.: +62 (274) 564388, 511035.

e-Mail: [email protected]

STT No.: 2011/SK/DITJEN/PPG/SST/1994

The estimated time for the publication of the research result in the international

journal is not more than 1 year of approval of the research proposal, which is in

line with the preparation of the periodic report of this study.

3) Paper conference:

a) 2016 The 4th International Conference on Business and Social Sciences

(ICBASS), 29 – 31 March 2016, Kyotodaigakukatsura, Japan.

b) International Conference on Business and Management, in 28th - 30th June

2016 Indonesia, Bali

mailto:[email protected]


Research Project Schedule. Please note that the resear ch period is one year from April 2016 through March 2017.

But it can be extended by another one year max. if required for fu lfillment of the project.

Time Research Project Activities Place

April – May 2016

May – June 2016

June – July 2016

July – August 2016

August – October

2016

October –

November 2016

November –

December 2016

December 2016 –

January 2017

January – February

2017

February – March

2017

Literature review

Attending International Conference

Questionnaires design

Attending International Conference

Sampling design

Test of questionnaire

Data collect

Preanaltical process

Data analysis

Drafting

Evaluation

Writing report

Jakarta, Bandung

Japan

Jakarta, Bandung

Bali

Jakarta, Bandung

Jakarta, Bandung

Jakarta, Bandung

Jakarta, Bandung

Jakarta, Bandung

Jakarta, Bandung

Jakarta, Bandung

Jakarta, Bandung


Line Item of Applied Grant Amount (Fiscal 2015). Please use the categories given in the list of "Categories for

Applicable Expenses" in the "Instruction Sheet for Application Form". For "Currency", use the same currency as that of the

"Applied Grant Amount", page 1. (Currency: J¥ or U.S.$)

Category Amount Calculation Basis and Other Details

Expenses for transportation

(20%): a) Domestic: literature

review, data collect,

attending national conference

b) Overseas: attending international conference

Expenses for accommodation (20%):

a) Domestic: literature

review, data collect, attending national

conference

b) Overseas: attending

international conference

Expenses for communication and

transportation (10%):

Remuneration for research

assistant (15%):

test of questionnaire, data collect, evaluation

Rental/Procurement for goods (10%)

Expenses for printing and publishing (20%)

Expenses for meeting and others

J¥ 120,000.00

J¥ 120,000.00

J¥ 60,000.00

J¥ 90,000.00

J¥ 60,000.00

J¥ 120,000.00

J¥ 30,000.00

4persons x 4months x J¥ 3,750.00 =

J¥ 60,000.00


J¥ 60,000.00


J¥ 60,000.00


J¥ 60,000.00

10months x J¥ 6,000.00 = J¥ 60,000.00

5persons x 4months x J¥4,500.00 =

J¥ 90,000.00

10months x J¥ 6,000.00 = J¥ 60,000.00

5months x J¥ 24,000.00 = J¥ 120,000.00

10persons x 10months x J¥ 300.00 = J¥

30,000.00

Total

J¥ 600,000.00

←Equal to "Applied Grant Amount" on page 1 .

Letter of Recommendation . A letter of recommendation, free-form, in Japanese or English addressed to President of The

Sumitomo Foundation shall be submitted with this application form. The letter shall be issued by a person with an academic

background and shall contain name of applicant, research theme and reason for recommendation as minimum requirements. Please

note that an application without a letter of recommendation is definitely invalid.

application form - dr. mulyaningrum, se, m.hum · pdf fileapplication form application date:...

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