Benefits of Research CONCLUSION

MIICEMA 2014 10-11 November 2014 Hotel Bangi-Putrajaya, Malaysia 302

II. LITERATURE REVIEW 2.1. Capacity Management

Capacity management is the fourth production factor affecting farm performance. Rougoor et al., 1998. Wilson et al. 2001 says that the great variation in farm performance in the environmental conditions and the same constraints caused by variations in management. Results elaboration of Rougoor et al 1998 showed that capacity management is something related to personal characteristics and skills to achieve the correct issues and opportunities in the opportunity and the right way. This means that decision-making will seek to optimize the and biological processes such as in Figure 2.1. Figure 2.1. Management Capacity in Relation to Environmental and Biological Process of Agricultural Products Rougoor et al., 1998 Based on Figure 2.1 that the performance of agriculture is influenced by internal and external factors. Internal factors consist of personal aspects, aspects of the decision- making process, and technical processes and biological aspects. While the external factors consisting of institutional, social, economic and physical aspects as well in determining the performance of agriculture. Management capacity are grouped in two interrelated components, namely the personal aspects and aspects of the decision-making process. Personal aspect consists of encouragement and motivation, ability and capability, as well as biographies. While the decision-making process is the practice and procedure in the planning, implementation, and control Rougoor et al., 1998. Rougoor et al 1998 distinguish the personal aspects of the four main dimensions are 1 institutional environment, 2 social environment, 3 the physical environment, Organization Outcome Efisiency technical Efisiency price Social Motivation Capability Biography Planning Implementation Controling Technical and biological aspects Personal manajer aspect Decision making process Enviroment Economic Physic MIICEMA 2014 10-11 November 2014 Hotel Bangi-Putrajaya, Malaysia 303 and 4 the economic environment. Personal characteristics and abilities is an important aspect in a managerial capacity of farmersfishermen, this aspect can be divided into 1 encouragement and motivation as goals and the response of farmersfishermen to risk, 2 the ability and capability as cognitive and intellectual abilities, 3 biography farmersfishermen like background and experience in farming. Results of research conducted by Priyanto et al. 2001 showed that the process of budgeting and record-keeping efforts also often traversed by farmersfishermen when they carry out farming. The process of budgeting and recording business is not executed, then there is no control over the efficiency and optimize the use of resources owned by the farmersfisherman.

2.2. Strategy

The most effective way to cheat and efficiently develop the peoples economy is the economy in the agribusiness sector. Currently, only the Indonesian agribusiness sector including SMEs makes it possible to be able to compete to seize market opportunities in the era of free trade Saragih, 2001. Continuous adjustments according to changes made so SMEs because of the uncertainties and risks it will face. Adaptation affects its strategic behavior change, increase compensation, and encourage alignment with the organizations environment.

2.3. Entrepreneurship

Saragih 2001 says there are five things that are the traits of successful entrepreneurs, namely: 1 the motivation to move forward, 2 mental strength include: IQ, creative thinking and analytical thinking, 3 the ability to establish relationships, 4 ability to communicate , 5 technical knowledge. According to Halimah 1992, the reluctance of farmers fishermen bear the risk is negatively related to the level of welfare or measured by income and extensive land ownership. Education and knowledge also influence a persons rationalization in accepting the risk of failure that may occur.

2.4. Theoretical Framework

Schematically, the pattern of thinking of this research is described as follows: MIICEMA 2014 10-11 November 2014 Hotel Bangi-Putrajaya, Malaysia 304 Figure 2.2. Research Framework

2.5. Research Hypothesis

Based on the concept of theory and research that has been previously described, it can be derived several hypotheses as follows: Hypothesis 1: Aspects of personal characteristics partially or jointly with organizationsinstitutions will influence the behavior of entrepreneurial spirit and SMEs farmersfishermen through PNPM and P2KP. Hypothesis 2: Spirit and behavioral owned entrepreneurial farmersfishermen will affect the management capacity in this decision-making process through independent PNPM and P2KP. Hypothesis 3: The strategy will affect businesses owned management capacity of farmersfishermen in this decision-making process through independent PNPM and P2KP. Hypothesis 4: Capacity management in this decision-making process in the SME business of farmersfishermen will affect the performance of its business through independent PNPM and P2KP. Decision Making Process Personal Characteristics Organization Spirit and Behavior FarmerFisherman Entrepreneur Unit Strategy