IMPACT OF SIX SIXMA ON TOURISM INDUSTRIES PERFORMANCE IN INDONESIA: EVIDENCE FROM STRUCTURAL EQUATION MODEL

Abstract

Concept of Six Sigma is comprehensive for finding the appropriate strategy as of the industry can run as efficiently as possible and survive in an economic wave currently under challenging times, including the tourism industry, which is the object of this research. These papers examine an overview of the empirical study of relationships between six sigma strategies toward tourism industry performance. For many countries, tourism is seen as one of the instruments for developing country because it can trigger new economic activities. Tourism also has assertive economic impact on the balance of payments, unemployment, GDP, and profitability. Unplanned and uncontrolled tourism growth has an impact on financial sustainability. The methodology used in this research is quantitative by distributing an online questionnaire consisting of 16 statement items with a five-point Likert scale. The sample size used for this research is 300 tourism service providers in 10 of the city in Indonesia, which is the leading destination for tourists. This research was processed using smart PLS 3.2.9 analysis tools and methods research in this study using Structural Equation Modeling (SEM), namely the equation model with a variance-based approach or modeling component-based structural equations. The findings from this study indicate that the latent variable models are involvement and top management commitment, training and education, cultural change, industrial infrastructure, and teamwork has a fit outer model relationship (> 0.7) between latent variables and indicators of efficacious Six Sigma implementation in the tourism industry in Indonesia. However, top management commitment and industrial infrastructure have a low t value, so of course, this is a challenge and input for developing the tourism industry in Indonesia in the future.

Keywords

• tourism
• six sigma
• sustainability