Strategy for Improving the Effectiveness of Management Vocational School-Based Enterprise in Indonesia

Indonesian government is focusing on improving the quality and effectiveness of Vocational High Schools. One of many efforts conducted is transforming vocational schools into vocational school-based enterprises. This study aims to analyze the factors influencing the effectiveness of vocational school-based enterprise management through the implementation of School Governance and Total Quality Management. This study used quantitative and qualitative approaches and PLS-SEM analysis, AHP, and ISM techniques. Questionnaires were distributed to 231 respondents from students, teachers, principals and committees in 25 vocational school-based enterprises in East Java and DKI Jakarta. The results of PLS SEM analysis demonstrated valid, consistent and good modeling. Furthermore, TQM showed a significant and positive effect on SG with R2 of 80.2 percent. Consequently, SG and TQM also had a positive and significant effect on improving the effectiveness of vocational school-based enterprise management with R2 of 92.2 percent. In addition, the strategy reveals an increase in the effectiveness of vocational school-based enterprise based on AHP by increasing the implementation of SG through adding criteria for strong and firm leadership in the human resources in vocational school-based enterprise. Meanwhile, based on ISM result, by increasing TQM as the key factor has the greatest driving force before improving SG. It is recommended to devise a strategy that could help to increase the effectiveness of managing vocational school-based enterprises.