INDUSTRY AND UNIVERSITY LINKAGES (STUDY OF PT....
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INDUSTRY AND UNIVERSITY LINKAGES (STUDY OF PT. PUSRI PALEMBANG, INDONESIA) WENDY ARIYANDA Dissertation submitted in partial fulfillment of the requirements for the award of Master of Technology Management Faculty of Management and Human Resources Development University Technology of Malaysia January, 2012
Transcript of INDUSTRY AND UNIVERSITY LINKAGES (STUDY OF PT....
INDUSTRY AND UNIVERSITY LINKAGES
(STUDY OF PT. PUSRI PALEMBANG, INDONESIA)
WENDY ARIYANDA
Dissertation submitted in partial fulfillment of the requirements for the award of Master of Technology Management
Faculty of Management and Human Resources Development
University Technology of Malaysia
January, 2012
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Dedication
For my mom and dad, family, and Atika Mutiarani
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Acknowledgment
With the name of Allah who has given me grace and guidance, patience and
health during this time.
First of all, I would like to thank my supervisor, Dr. Aslan Amat Senin for all
support and guidance for completing this dissertation.
I also would like to thank the examiners, Dr. Noraini Abu Talib and Dr.
Mohd. Noor Azli Ali Khan, who has provided input to this dissertation. Thanks also
addressed to all staff FPPSM, and also friends of Technology Management who has
helped me in the learning process.
Personally thank you also addressed to all my friends in UTM and
Palembang, which has always given support to me in order to complete the
dissertation quickly and correctly.
Big thanks also I give to all parties involved directly or indirectly in
completing this dissertation.
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Abstrak
Objektif utama kajian ini ialah untuk mengetahui tentang hubungan
kerjasama yang dijalankan oleh PT. PUSRI Palembang dengan universiti yang ada di
Indonesia. Di samping itu, tujuan kajian ini ialah untuk memberikan input dan
nasihat kepada PT. PUSRI untuk mengetahui dan membaikii kekurangan yang
berlaku apabila melakukan hubungan kerjasama dengan universiti. Beberapa
persoalan kajian telah dibuat untuk mengetahui tentang hubungan kerjasama yang
dilakukan oleh PT. PUSRI dan universiti. Untuk membantu dalam proses
penyelidikan ini, beberapa sumber data telah disiapkan iaitu soal selidik yang
diedarkan kepada PT. PUSRI dan soal selidik yang diedarkan kepada UNSRI,
sehingga akan didapati perbandingan mengenai hubungan kerjasama dari perspektif
industri dan universiti. Di samping itu, sumber data lain ialah rujukan daripada jurnal
dan buku yang berkaitan dengan penyelidikan mengenai hubungan industri dan
universiti. Keputusan yang diperolehi dari penyelidikan ini ialah jenis kerjasama
yang paling kerap dilakukan oleh PT. PUSRI, kekangan yang timbul daripada
hubungan kerjasama, dan kriteria kejayaan yang menjadi pengukur kejayaan
hubungan kerjasama tersebut.
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Abstract
The main objective of this research is to know about the relationship of
cooperation conducted by PT. PUSRI Palembang with universities in Indonesia. In
addition, the purpose of this research is to provide input and advice to the PT. PUSRI
in order to find and fix the shortcomings that occur when performing cooperative
relationship with universities. Several research questions have been made to find out
about the relationship of cooperation conducted by PT. PUSRI and universities. To
assist in this research process, several data sources have been prepared. Among them
is the questionnaire distributed to PT. PUSRI and questionnaires distributed to
UNSRI, so it will be found the comparison of the relationship of cooperation from
the viewpoint of industry and university. In addition, other data sources are referrals
from journals and books related to research on industrial relations and universities.
The results of this research is the kind of cooperation that most often done by PT.
PUSRI, barriers arising from the relationship of cooperation, and motives of these
relationships.
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Table of Contents
Chapter Case Page
Declaration ii
Dedication iii
Acknowledgement iv
Abstract v
Table of Contents vii
List of Tables xi
List of Figures xiii
List of Abbreviations xv
List of Appendices xvii
1 Introduction 1
1.1 Overview 1
1.2 Importance of the Research Topic 3
1.3 Research Objectives and Questions 5
1.4 Scope of Study 6
1.4.1 Introduction of PT. PUSRI
Palembang 6
1.4.2 Introduction of UNSRI
Palembang 7
1.5 Limitation of Study 8
1.6 Significance of Study 9
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2 Literature Review 11
2.1 Introduction 11
2.2 Definition of U-I Linkages 12
2.3 The Importance of U-I Linkages 17
2.4 The Triple Helix: Industry, University, and
Government 23
2.5 University and Industry Linkages in the
Developed Country 25
2.5.1 U-I Linkages in Taiwan 25
2.5.2 U-I Linkages in South Korea 29
2.6 University and Industry Linkages in the
Developing Country 31
2.6.1 U-I Linkages in Thailand 33
2.6.2 U-I Linkages in China 36
2.6.3 U-I Linkages in Malaysia 38
2.7 Barriers to U-I Linkages in Developing Countries 41
2.8 Motives of U-I Linkages in Developing
Countries 46
2.9 Conclusions 47
3 Research Methods 49
3.1 Introduction 49
3.2 Research Questions 49
3.2.1 Factor Analysis 51
3.2.2 Descriptive Analysis 52
3.3 Sampling Research 52
3.4 Data Collection Method 54
3.4.1 Primary Data 54
3.4.2 Secondary Data 55
3.5 Pilot Study 55
3.6 Data Analysis Method 56
3.7 Research Framework 56
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3.7.1 Problems 56
3.7.2 Research Questions 57
3.7.3 Design 57
3.7.4 Data 57
3.7.5 Analysis of Data 58
3.7.6 Conclusions 58
4 The Finding I: PT. PUSRI Palembang 59
4.1 Introduction 59
4.2 Analysis of Questionnaire Data 59
4.3 Questionnaire Distribution 61
4.4 Demographic Data 62
4.4.1 Gender 62
4.4.2 Age 62
4.4.3 Work Experience 63
4.4.4 Level of Education 64
4.4.5 Experience Working in Education 64
4.5 Interests Cooperation Relationship between
PT. PUSRI with Universities 65
4.5.1 Introduction 65
4.5.2 The Result of Data Analysis 66
4.6 Kinds of Cooperation between PT. PUSRI
and Universities 68
4.6.1 Introduction 68
4.6.2 Types of Cooperation are Ever Executed 68
4.6.3 Types of University Cooperating with
PT. PUSRI 71
4.7 Motives in Conducting Cooperation with
Universities 71
4.8 Barriers in Establish Cooperative Relationship
with Universities 73
4.9 Suggestions Regarding Industry and University
Cooperative Relationship 76
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4.10 Opinions Regarding Research’s Title and
Questionnaire about Industry and University
Linkages 79
4.11 Conclusions 80
5 The Finding II: Comparison of PT. PUSRI and
UNSRI 81
5.1 Introduction 81
5.2 Level of Agreement toward Cooperative
Relationships Obtained 82
5.3 Types of Cooperation Relations Which is
Conduct Based On Concernment from Each
Institution 84
5.4 Barriers of PT. PUSRI and UNSRI in Establish
Relationships 88
5.5 Conclusions of Cooperative Relationships
Comparison between P.T. PUSRI and UNSRI 91
6 Discussions and Conclusions 94
6.1 Introduction 94
6.2 Level of Respondents’ Agreement about
Cooperation Relations with Universities 94
6.3 Cooperation between PT. PUSRI with
Universities 95
6.3.1 Kinds of cooperation that conducted
by PT. PUSRI with universities 95
6.3.2 The Motives of Relationship
between PT. PUSRI and
Universities 96
6.3.3 Types of Barriers that PT. PUSRI
Felt in Carrying Out Cooperative
Relationships with Universities 97
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6.4 Industry and University Linkages Based on
Concernment of each Institution 98
6.5 Theoretical Implications 99
6.6 Conclusions 100
References 102
Appendices 109
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List of Tables
No. of Table Title Page
2.1 Profit from University-Industry Linkages 21
2.2 Types of Arrangements and Mechanism of
Collaboration between Industry and University 21
2.3 Sources of Technological Innovation in Taiwan 27
2.4 Research in Several Countries in Asia 32
2.5 Types of Industry and University Cooperation that
Exist in Thailand 34
2.6 Chinese Universities in R & D Spending 37
2.7 Income Generated by Chinese Universities
through Licensing and Sales of Patents 38
2.8 The Types of Industry and University Linkages 40
2.9 Factors Contributing University and Industry
Barriers 42
2.10 Reasons Why the Problem Must be bridged 43
2.11 Barriers to U-I Linkages (Case of UNSRI) 44
3.1 SPSS Methods for Research Questions 51
3.2 Sample size Schedule 53
4.1 Statistic Data of Agreement Level on Cooperative
Relationships 67
4.2 Types of Cooperation of PT. PUSRI with Universities
and the Correlation Factor 69
4.3 Statistic Data of Motives among PT. PUSRI
and Universities 72
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4.4 Statistic Data of Barriers in Establishing U-I Linkages
between PT. PUSRI and Universities 74
4.5 Advices to Government 76
4.6 Advices to Industry 77
4.7 Advices to University 77
4.8 Advices to Industry-University 78
5.1 PT. PUSRI Agreement Level (Comparison
with the Universities) 82
5.2 UNSRI Agreement Level (Comparison with
Industries) 82
5.3 Mean Table of Agreement Level between
PT. PUSRI and UNSRI 83
5.4 Order of Cooperation Intensity Seen from
Concernment of P.T. PUSRI and UNSRI 87
5.5 Barriers for P.T. PUSRI and UNSRI In
Establishing Cooperation 89
5.6 Other Barriers that Experienced by P.T. PUSRI and
UNSRI In Conducting Relationships 90
5.7 Industry-University Tasks to Upgrade Relationships 92
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List of Figures
No. of Figure Title Page
2.1 The Concept of Cooperative Relationships between
Industry and University 13
2.2 Industry and University Relationship Schema 15
2.3 Triple Helix Models: Industry-University-Government
Relations 24
2.4 Investments on R & D in 2005 32
3.1 Research Framework 58
4.1 Gender of Respondent 62
4.2 Age of Respondent 63
4.3 Work Experience of Respondent 63
4.4 Educational Level of Respondent 64
4.5 Experience with institution of Education 65
4.6 Level of Agreement on Cooperative Relationships 66
4.7 The Types of Cooperation of PT. Pusri with Universities 68
4.8 Types of University that Cooperating with PT. PUSRI 71
4.9 Motives of Industrial Relations and Cooperation
between the Universities 72
4.10 Barriers in Establishing Industry and University
Cooperation 74
5.1 Comparison of Concerment Relationship Between
P.T. PUSRI and UNSRI 85
6.1 U-I-G Linkages 99
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Abbreviations
AUTM - Association of University Technology Managers
BHFE - Beacon Hill Financial Educators
CNC - Computer Numerical Control
EPC - Engineering, Procurement and Construction
GDP - Gross Domestic Product
GRI - Government R&D Institutions
HEI - Higher Education Institution
IMD - Institute for Management Development
ITB - Institut Teknologi Bandung
ITS - Institut Teknologi Sepuluh November
MoU - Memorandum of Understanding
N - Population
NSI - National System of Innovation
NRCT - National Research Council of Thailand
NSI - National System of Innovation
NSTDA - National Science and Technology Developer Agency
OECD - Organization for Economic Co-operation and
Development
PhD - Doctor of Philosophy
PT - Perseroan Terbatas
PUSRI - Pupuk Sriwidjaja
R&D - Research and Development
S - Sample
SCI - Science
SME - Small and Medium Enterprises
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SOE - State of The Environment
SOP - Standard Operating Procedure
SPSS - Statistical Package for the Social Sciences
TRF - Thailand Research Fund
U-I - University-Industry
U-I-G - University-Industry-Government
UGM - Universitas Gadjah Mada
UIL - University and Industry Linkage
UK - United Kingdom
UNESCO - United Nations Educational, Scientific and Cultural
Organization
UNSRI - Universitas Sriwidjaja
US - United State
USA - United State of America
USPTO - United States Patent and Trademark Office
WARF - Wisconsin Alumni Research Foundation
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List of Appendices
Appendix Title Page
A Interest Cooperative Relationship between PT. PUSRI
with Universities 108
B Kinds of Cooperation between PT. PUSRI and
Universities 111
C Motives in Conducting Cooperation with
Universities 128
D Barriers in Establish Cooperative Relationship with
Universities 131
E Advices to Industry, University, and Government 134
F Mean Value of Agreement Level between PT. PUSRI
and UNSRI 140
G Questionnaire 145
Chapter One
Introduction
1.1 Overview
Industry and university are two institutions that play an important role in the
progress of a country, because it can generate new knowledge and technology which
benefit to the progress of the country. The relationship between industry and university
is based on the interests of each institution, and that relationship has been running
anywhere from a few decades ago (Aslan, 2006). The cooperation between the two
institutions could produce an innovation and technology for the benefit of that
country. It has long been known that the university has a major contribution to the
progress of regional systems and national innovation through the provision of "skilled
workers" (Mowery and Sampat, 2005) and "information" (Salter et al., 2000). Therefore,
both university and industry must have contributions to mutual support and help in
improving cooperation between the two parties.
Strong links between industry and university in research and education is the
relationship that has been conducted because of the university’s interests of new science
and educational research results are useful for the university, and also the general public.
Strong links are also felt the industry could increase corporate profits and gain useful
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knowledge to develop new technologies, so it can be applied to the production activities
that can be useful for society (Mowery, 2011).
However, in carrying out such relations between university and industry have
found various problems that may hinder establishment of cooperation for both parties,
such as communication problems, the bureaucracy that exist in each institution, to the
lack of assistance from the government in establishing such partnerships.
Communication problems can lead to differences in the purpose of cooperation is that
industry and university do not get optimal results from the cooperation. University's
bureaucracy may hinder and slow the establishment of cooperation with industry, as well
as the industry's bureaucracy that is lack of seriousness to cooperate with university.
Meanwhile, the government also considered less give of attention to the relationship
between industry and university; this can be seen from the lack of funding, incentives
and facilities provided by the government in supporting the partnership. Even those
problems can reduce the quality of relationships that had been executed between
university and industry. Based on the results of the study Hamel and Prahalad (1994),
the industry often have difficulty in developing new product and technology if only
depend on the depth organizational units due to limited resources and expert people,
therefore the industry requires the university's cooperation in carrying out that works.
There are several types of relationships that can be run between university and
industry. Among them is the research together to create an innovation and
technology. Most researches and practices which are run by university and industry
stems from a research that conducted by the university which is then transferred to the
industry (Sparrow et al., 2009). The second cooperation is to run industrial training
undertaken by students of a university in the industry. Other cooperation is sending the
industry people into the university to give lectures about the industrial workplace, and
conduct training and consultation to the university that can support industrial activity in
the future (Hatakenaka, 2006).
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1.2 Importance of the Research Topic
Relationship between industry and university are complementary relationship
between one another and has been running for a long time (Betts and Santoro, 2003). In
this case, the university role is to produce students of high quality that will fill positions
in the industry at the future. Whereas, industry play a roles in giving an introduction
about the industry workplace to students and provide the technology to create an
innovation.
From the statement about the relations between industry and university, the
researcher wanted to know some factors that exist in industry in order to conduct
relationship with university that run in Indonesia, especially in Palembang, South
Sumatera. Phase relations of cooperation can be seen from the number of research by
both parties. Besides, the phase relationships can also be seen from the number of
lectures that industry conduct to university about the industry workplace, and the
number of students who do industrial training in the industry. Not only that, the phase of
cooperation can also be measured by the ability of industry and university in overcoming
barriers when run that cooperation. According to Laestadius (2004), an organization's
success cannot be separated from the organization's ability to increase corporate
knowledge for healthy competition and innovation. This can be achieved through
cooperation with the university. The statement was also supported from the results of
research conducted by Agrawal (2001), that the organization's success cannot be
separated from partnerships with university that have provided important new source of
knowledge for the industry.
Basically, this study intends to determine the types of cooperation are often run
by industry and university, any barriers that arise in a relationship of cooperation, the
motives of what is a barometer of the success of such cooperation, and also to know the
differences of interest the cooperation of the industry and university.
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To get answers to the questions above, then it needs to be made a questionnaire
that will be given to the industry and universities. Questionnaires will be distributed to
the PT. PUSRI, while for the university, in this case UNSRI, have already been
distributed in advance because research in university has been carried out.
Questionnaires that are distributed to the PT. PUSRI or UNSRI are the same
questionnaire, this is due to issues and problems in the questionnaire are getting different
answers from both sides. So there will be comparative view of the collaboration
undertaken by the industry and university.
Furthermore, differences in views between industry and university will be
analyzed by comparing the two answers. Results from this comparison that can be used
by industry, in this case PT. PUSRI, and university, in this case UNSRI, to find out
about their cooperation during this run. From the results of this comparison, industry and
university can know what kind of cooperation that they often do, and what kind of
cooperation is most done by other institutions. Industry and university can also find out
their weaknesses in a relationship of cooperation, the weakness can be seen from the
barriers that often arise in a relationship such cooperation. So it can be improved to
further cooperation-cooperation. In addition, industry and university can also provide
feedback between each other in order to strengthen cooperation and increase the number
of co-operation to be performed.
Not only addressed to industry and university, but research is also directed
towards the government. The expectation of the results of this research is government
can provide support in the form of funding, incentives, and also facilities to support the
cooperative relationship between industry and university. Also expected to be industry-
university-government can both cooperate with the aim to advance the nation's
economy. A developed nation's economy will have a positive impact to all aspects of life
of the nation.
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1.3 Research Objectives and Questions
The general objective of this dissertation is to determine the relationship of
cooperation between PT. PUSRI and university in Indonesia, Palembang in particular.
Researcher wants to know the characteristics of cooperation between industry and
university in Indonesia. Therefore, several questions have been made to obtain data that
can assist in the completion of this study.
Firstly, the purpose of this study is to explore the kinds of cooperative
relationships between industry and university in Indonesia, especially for the
industry. So that kind of cooperation can be enhanced and followed by other industries
which would make cooperation with the university. Therefore, the right question to
answer that objective are:
(i) What kinds of cooperation that conducted by PT. PUSRI with university?
Secondly, this study aims to determine the perceived barriers to the industry in
carrying out cooperative relationships with university. So these barriers can be removed
later. Question that can answer this goal is:
(ii) What types of barriers that PT. PUSRI felt in carrying out cooperative
relationships with universities?
The final purpose of this study is to identify the motives of university-industry
collaboration. The appropriate questions to answer this objective are:
(iii) What are the motives of relationship between PT. PUSRI and university?
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1.4 Scope of Study
The study will be conduct in industry and university in Indonesia, particularly in
the area of South Sumatra. The respondents in this study are workers in industry and
lecturers in university who will be selected at random. The industry and university are:
(i) P.T. Pupuk Sriwijaya (PUSRI) Palembang, South Sumatra (ii) University of Sriwijaya (UNSRI) Palembang, South Sumatra
The main reason to do research in these two institutions because of PT. PUSRI is
a company that has been long standing and also has experience working with university.
While UNSRI is the university that has been long standing, and also has extensive
experience in establishing partnerships with industry. The other reasons for choosing
these two institutions for research are that the two institutions are located in the same
city, Palembang. So it can save time and costs of doing research. In addition, to conduct
research at the two institutions is also easier because the author had access to be able to
do research, in this case make the distribution of questionnaire.
1.4.1 Introduction of PT. PUSRI Palembang
PT. PUSRI established on December 24, 1959, in order to support the
government's economic and national development, in this case engaged in the
production of fertilizers and other chemical industries. PT.PUSRI is the parent company
which has several subsidiaries, including:
(i) PT. Pupuk Iskandar Muda, located in Aceh, the company is moving in the
same field of fertilizer and chemical industry, this company created to
support PT. PUSRI in producing fertilizers to meet the needs of western
Indonesia.
(ii) PT. Petrokimia Gresik, located in East Java, produce urea fertilizer,
phonska, organic fertilizer, and some other chemical industries. PT
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Petrokimia Gresik is made to assist PT. PUSRI in fertilizer needs for the
island of Java and the surrounding region.
(iii) PT. Pupuk Kujang, located in West Java, produce urea fertilizer and other
chemical industries. PT. Pupuk Kujang also help PT. PUSRI to meet the
demand for fertilizer in the area of the island of Java.
(iv) PT. Pupuk Kaltim, located in East Kalimantan. The company is helping
PT. PUSRI to meet the needs of urea fertilizer and chemical industries in
the region of Kalimantan.
(v) PT. Rekayasa Industri, located in Jakarta. The company is engaged in the
EPC contractor to build oil and gas industry, power generation, and
mining.
(vi) PT. Mega Eltra, located in Jakarta. The company is engaged in general
trading.
PT. Pupuk Sriwidjaja (PUSRI) is the only government owned urea fertilizer
producer in Indonesia. Sriwidjaja name is taken from the name of the kingdom are
highly respected in Southeast Asia to mainland China in the 7th century. Construction of
the plant PUSRI done in stages, beginning with the development PUSRI I in 1961 with a
production capacity of 100,000 tons of urea and 59.400 tons of ammonia per year.
Because of a perceived lack of sufficient production to meet the needs of all of
Indonesia, then rebuilt the factory PUSRI II, III, and IV during the period 1972-1977.
Each plant can produce urea and ammonia with a capacity of 570.000 tons per year.
1.4.2 Introduction of UNSRI Palembang
UNSRI is a public university located in South Sumatra, and was established on
October 29, 1960. The first Faculty that established is faculty of economics; this faculty
is under the Foundation of Higher Education of Sjakhjakirti. Until now UNSRI has 10
faculties, including:
(i) Faculty of Economics
(ii) Faculty of Law
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(iii) Faculty of Social and Political Sciences
(iv) Faculty of Engineering
(v) Faculty of Medicine
(vi) Faculty of Agriculture
(vii) Faculty of Teaching and Education
(viii) Faculty of Mathematics and Natural Sciences
(ix) Faculty of Computer Science
(x) Faculty of Public Health
Sriwijaya University has two campuses located in Inderalaya (Ogan Ilir) and
Bukit Besar (Palembang) with an area totaled 795 acres. UNSRI has the motto "Ilmu
Alat Pengabdian" which means that every people must serve God, country, community,
and family. In addition, the symbol of UNSRI also has various meanings, including the
majesty of Sriwijaya and the university's determination to follow the rotation of the
times.
1.5 Limitation of Study
In making this study, the researcher will define the limits review only for those
university and industry. In this case are P.T.PUSRI and UNSRI. The limitations of such
studies are as follows: (i) The study was carried out by conducting a research against the university
and industry in Indonesia, especially in South Sumatera. In this case are
P.T.PUSRI and UNSRI. Thus the results of this study can only be utilized
by these institutions. (ii) The research was conducted by giving questionnaires to workers in PT.
PUSRI and lecturers in UNSRI.
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1.6 Significance of Study
This study also helps to know and analyze the importance of the relationship
between the university and industry in Indonesia, which can facilitate between industry
and university in enhance cooperation in various fields. These benefits include:
(i) Assist industry and university to find out what kind of cooperation they
can do to help each other in improving productivity in each institution.
(ii) Provide advice about how to explore cooperation that can help improve
the productivity between the two institutions.
(iii) Assist industry and university to know what barriers they can prevent and
resolve in carrying out cooperative relations.
(iv) Provide information about the motives that can describe the success of
relationships.
The first advantage can assist the industry and university to increase the intensity
of cooperation relationships. This research will provide a positive impact on the progress
and intensity of cooperation between industry and university. Since the review of
research that will run around the type of partnership that is usually done by industry and
university. The answers of these questions will be used as reference material by the
industry and university to find out what kind of cooperation that they often run, and
what kind of cooperation that they rarely do. So it can help the industry and university
can increase over the previous cooperation is very seldom they do.
The second advantage that obtained by industry and university is the input of the
respondents against the company or university in order to make improvements and
intensification of the cooperation that has been executed. So to further co-operations, the
shortfall can be eliminated so that the quality of cooperation is increasing. This will
indirectly make a company's production capacity will be increased, because the creation
of new technologies and innovations from the result of cooperation between industry
and university.
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The third advantage that gained by industry and university from the results of
this research is information about the barriers that have so far appeared in a relationship
of cooperation. Due to these constraints can be used as a learning by both institutions in
order to do a more effective communication to produce an effective partnership and
efficient.
While the benefits that can be obtained from the results of this research is
information on the motives that always arise when a relationship of cooperation has been
executed. Motives were given by respondents who had conducted a relationship of
cooperation with university, because they know the positive impact of what they get
when a relationship of cooperation has been executed. So that industry and university
have access and ease of doing some research related to the facilities and knowledge
contained in each institution.
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