Strategi

This study strives to investigate whether the business performance of PT Pertamina (Persero) Integrated Terminal Teluk Kabung can be improved through an effective service operation strategy and service delivery strategy. This study uses primary and secondary data information. The data analysis pulled in this study is descriptive and causal and was obtained through the census method of 104 respondents who are the owners of 136 gas stations spread across West Sumatra. The causality data was then processed using PLS-SEM software. The study results show that some gas station operators in the area complained about PT Pertamina's services to consumers, which were considered slow and inflexible. Internal processes and customer perspectives that prioritize responsiveness capabilities to market needs will potentially improve business performance sustainably

above indicates that 50,50 percent respondents do not satisfy with service accuracy, 49,5 percent respondents do not satisfy with the quality accuracy, 49,5 percent do not satisfy with sacurity/safety accuracy, 48,9 percent do not satisfy with the timeliness, and 13,1 percent do not satisfy with quality accuracy. Among 5 standards, only quality accuracy reached more than 75 percent of targetted performance. The Key Performance Indicators (KPI) of the company targetted the Customer Satisfaction Index (CSI) for Integrated Terminal managers in 2020 to be 4,19 on a Likert scale (from a weighted Likert scale of 1 to 5) or around 83,80 percent. The survey yet found that service accuracy reached 49,5 percent of the target achievement of 83,8 percent.
A preliminary survey was also conducted on employees of PT Pertamina (Persero) Integrated Terminal Teluk Kabung to ascertain whether there were any problems related to Business Performance. Stratification is conducted by brainstorming on either internal and external problems that often occur on a daily basis or problems that are received through incident reports or customer complaints media. There were 10 employees who have direct responsibility for operational activities in the field were interviewed in this process of brainstorming. The results showed that there were 37 reports and complaints both internally (38,00 percent) and externally (62,00 percent), where most of the complaint was of customer dissatisfaction. It was consisted of: 17 complaints from gas stations (46,00 percent), 12 reports from Pertamina employees (32,00 percent) and 8 reports from tanker truck fleet managers (22,00 percent). Overall, the highest problems based on reports/complaints are service problems 22 (59,50 percent) and security/safety 6 (16,20 percent) or if combined it will be 75,70 percent or equivalent to 80,00 percent.
Based on the preliminary survey of gas station owners and employees of PT Pertamina (Persero) Integrated Terminal Teluk Kabung above, it was indicated that there are problems related to business performance where several aspects are in fact below respondents' expectations. This is deplored, since the company holds monopoly position in the West Sumatra region. In the absence of a corrective action, the phenomenon of poor business performance of the company may have a negative impact on the company's performance in the future when competitors have entered the market in the West Sumatra region. While the problem of customer dissatisfaction emerged, the analysis unit itself is required to be ready to face changes in the business environment where business competition will be open. It might be suspected that the problem of poor business performance of PT Pertamina (Persero) Integrated Terminal Teluk Kabung is caused by the formulation and perhaps the implementation of the service operation strategy and the service delivery strategy has not been effective so far. The background of phenomenon be the reason of why this study aims to analyze the influence of service operation strategy and service delivery strategy in improving the management performance of PT Pertamina (Persero) Integrated Terminal Teluk Kabung.

Literature Review and Hypotheses Development The Relationship between Service Operation Strategy and Service Delivery Strategy
Operations strategy is an overall pattern of decision making to form long-term capabilities of any types of operation and their contribution to overall strategy through the reconciliation of market requirements with operations resources (James, 2011). Service Operation Strategy is developed to improve a service delivery system in meeting customer expectations (Arias-Aranda, 2002). The Service Operations Strategy consists of three basic operating strategies which are the focus of the service industry, including: process, service, customer orientation. Arias-Aranda (2003) also identified nine structural and infrastructure decisions that lead to a defined service operation strategy, namely: type of operation layout, push/pull oriented service delivery process, level of process standardization, number of different services offered, the use of information technology (cost reduction vs service improvement), the front and back office activity relationships, human resource specialization, customer participation rates, and new service design and development Service Operations Strategy is influenced by structural and infrastructure decisions (Akafia et al., 2017). It must be started from defining competitive criteria that will influence the choice of structure and infrastructure, as well as the organization's own competitive ability (Tomazzewski et al., 2016). Meanwhile, Ponsignon et al., (2011) stated that the Service Operation Strategy requires alignment between the design and service delivery system with the concept of service, representation and user participation. This will have implications for the definition of competitive criteria, because they are the basis of the overall strategy.
There are four dimensions of service operations strategy summarized from Arias-Aranda (2003) and James (2011): process, service, customer orientation, and operating resources. The determination of the four dimensions is formulated concering the interests of the unit of analysis. An appropriate process can contribute to the formulation of an appropriate competitive strategy supported by three indicators: operating layout, push/pull orientation, and the level of process standardization. Providing excellent service to each business partner (gas station) is also one of the dimensions in designing the Service Operation Strategy to support the appropriate process. It can be implemented by prioritizing several indicators such as: the number of different services offered, the use of information technology, as well as back & front office relationships. Excellent service aspects can be done well if customer orientation is one of the considerations in formulating Service Operations Strategy. Customer orientation can be measured through indicators of the level of customer participation, as well as being measured by how many new service developments have been successfully launched. Appropriate processes, excellent service, and customer orientation in developing Service Operations Strategy will be more optimal if supported by adequate operating resources, either tangible or intangible resources. Hence, the satisfaction level of gas stations in the business coverage area of PT. Pertamina (Persero) -Teluk Kabung Integrated Terminal is an important priority and a major consideration in formulating the right Service Operation Strategy.
Service delivery refers to the actual delivery of services to customers (Lovelock & Wright, 2002). The service delivery strategy thus represents the various approaches taken by companies in order to deliver or respond to problems in service delivery (Daddie & Akani, 2020). Service delivery strategy refers to the organization's openness to new ideas and the tendency to adapt through the process of adopting the latest technology, resources, skills and administrative systems which have an impact on increasing the level of service delivery (Chen, Tsou & Huang, 2009). Chen, Tsou and Huang (2009) who use the aspects of timeliness and responsiveness as dimensions in determining the service delivery strategy variables. Timeliness can be achieved through process efficiency, saving time and reducing customer stress through online services (Didia & Anyaogu, 2019). Meanwhile, responsiveness can be demonstrated by responding to customer needs quickly, flexibly, effectively and pleasantly.
In other service industries such as information technology (IT), Wiguno, (2011) argued that strategy that must be implmeneted by internal IT service providers is to focus on dissatisfaction to improve service quality to an adequate level of service. Service providers also need to provide consistent performance to support reliability. Ramdhani et al., (2017) Lopes et al., (2016) conducted research related to strategies in delivering public services and found that public service delivery strategies are prepared through policies that provide overall direction, priorities and guidelines for the delivery of public services and by the formulation of programs that operationalize overall policies and strategies. Lopes et al., (2016) divide it into 8 dimensions, including: Policy, strategy and planning; Infrastructure development; Resource mobilization and utilization; Leadership and accountability; Law, security and Property; Policy context; Overcoming key challenges; and Promotion of public services. The delivery of public services has a number of components that need consideration, including: speed, engagement, responsiveness, value, integration, choice, and experience. Increasingly, important performance indicators for the public sector are considered as being higher consumer expectations, efficiency, and effectiveness of public service delivery (Price Waterhouse Coopers Public Sector Research Center, 2007). Using data from private automotive firms' supply chains, Akafia et al., (2017) analyze the effect of service operations strategy. This study demonstrates the necessity of implementing a new service strategy in order to enhance supply chain performance at the Toyota Ghana Company Limited (TGCL), the study's subject. The business unit's service delivery strategy has been enhanced by TGCL's service operation strategy. This study serves as the foundation for establishing the hypothesis one of this research. H1: service operation strategy has a strong relationship with service delivery strategy The Relationship between Service Operation Strategy and Business Performance According to Wheelen et al., (2018), performance refers to the outcomes of all completed tasks. Performance refers to the accomplishment of established strategic goals that each organizational leader is expected to attain (Pearce & Robinson, 2018). Lizan Poltak (2018) argues that organizational performance express how effective an organization to satisfy the stakeholders. Business performance can be seen through three dimensions, including: organizational capability in leading the market, organizational capability in acquiring sales levels, and organizational capability in earning profits (Wheelen et al., 2018). In addition, the success of a business can be monitored based on their marketing and financial performance (Hubbard & Beamish, 2011). Marketing performance can be seen through several indicators such as sales growth, market growth, and market share.
The Balanced Scorecard (BSC) concept or model is one of the most impressive performance measuring techniques currently discovered by Kaplan and Norton (1992). BSC accommodates both financial and non-financial aspects in measuring organizational performance. The BSC provides four performance measurement perspectives: financial, customer, internal business processes, and learning and growth. Arias-Aranda (2002) proves that the Service Operations Strategy has a significant direct and positive effect on financial performance. These results show not only a strong relationship between Service Operations Strategy and financial performance, but also the magnitude of the impact of each operating strategy dimension on each non-financial performance dimension. Hence, the second hypothesis of this research was: H2: service operation strategy has a positive and significant effect on business performance.

The Relationship between Service Delivery Strategy and Business Performance
Daddie and Akani (2020) conducted a research entitled Service "Delivery Strategies and Customers Loyalty to Online Retailers in Rivers State". The study concluded that service delivery strategies such as timeliness and responsiveness predict customer loyalty as measured by repeat purchases and word of mouth promotion. Organizational performance considered by the research is related to non-financial performance which can be categorized from a customer perspective such as customer loyalty, repeat purchases, and word of mouth promotions. According to the findings of this study, there is a strong relationship between service delivery strategies and the performance of non-financial organizations. Ramdhani, Mnyamana, and Karodia (2017) present similar research findings, revealing that there is a very strong direct proportional relationship between service delivery and customer satisfaction. It is reasonable to believe that the service delivery strategy has a significant impact on the performance of nonfinancial organizations.

H3:
Service delivery strategy has a positive and significant impact on business performance.
The hypothetical framework of this study is depicted in Figure 1 below.

RESEARCH METHODS
The purpose of this research is to investigate the relationship between service operations strategy, service delivery strategy, and business performance. The unit of analysis of the research is PT. Pertamina (Persero) -Integrated Terminal Teluk Kabung. Meanwhile, the observation unit (respondents) came from outside sources, specifically 104 entrepreneurs who own and operate 136 gas stations in West Sumatra. The officials of 104 gas station business owners in West Sumatra who held positions such as commissioner, director, deputy director, GM, manager, and other appointed officials served as the unit of observation in this study. The hypothesis was tested using variant-based Structural Equation Modelling (SEM), specifically Partial Least Square (PLS), which measures the relationship between variables using a second order approach. To supplement the quantitative analysis of the hypothesis, qualitative analysis was also performed. This study employs two exogenous variables denoted by the letter X: Service Operation Strategy (X1) and Service Delivery Strategy (X2) (X2). Business performance is the endogenous variable (Y). The operationalization of the research variables is presented in Appendix 1. The first step is to assess the validity and reliability of the questionnaire instrument used.

The Validity and Reliability Tests
One of the methods required for testing is the validity test, the purpose of which is to ensure the instrument's reliability when used to measure the concept represented (Sekaran & Bougie, 2016). The Pearson product moment formula (Kaplan & Norton, 2005) is used in the validty test to generate correlation coefficients using SPSS or Microsoft Excel software. The following are the results of the validity tests that have been carried out for each research variable, with an r-critical of 0.3. Table 1,2 and 3 present the validity of the questionnaire questions for each variable: service operation strategy, service delivery strategy, and business performance. The reliability test determines the level of reliability of the questions in the questionnaire instrument, using the coefficient of Cronbach's Alpha coefficient. If Cronbach's Alpha is 0,7 or higher, the research instrument's questions are reliable (Wells & Wollack, 2003;2012). Table 3 shows the reliability test results for the three variables in this study.

RESULTS AND DISCUSSIONS
As many as 104 respondents (observation units) were involved in this study, representing 104 gas station owners as the unit of analysis who controlled a total of 136 gas stations spread across West Sumatra. The positions held by the chosen respondents range from Commissioner, Director, Deputy Director, GM, Manager, to officials appointed to represent gas station owners. Then, each respondent's educational background varies, ranging from high school graduates or equivalent, diplomas, bachelors', to master's degrees. Furthermore, the factors of work length and gender were included in the data collection of respondents in this study. The complete profile of the observation unit in this study is as shown in Figure 2.  Figure 2 shows that the majority of respondents (58 people) are managers, followed by 26 participants at the director's level, 17 commissioners, and the remaining three are general managers. The respondents are representatives of every gas station entrepreneur in West Sumatra who have sufficient experience in managing gas stations and are deemed to have the necessary capacity to respond to the questionnaire's various questions. The majority of respondents have 11-20 years of work experience, and as many as 90 out of a total of 104 respondents are male.

The description of service operation strategy, service delivery strategy, and business performance of PT. Pertamina (Persero) -Integrated Terminal Teluk Kabung
The service operation strategy in this study has four (4) dimensions: process, service, customer orientation, and operating resources. Table 4 summarizes the description of the four dimensions of service operations strategy on the subject of research.  The following variable is the service delivery strategy, which has three (3) dimensions: timeliness, responsiveness, and a focus on dissatisfaction. Table 5 provides a description of the dimensions mentioned above, as well as the indicators that comprise them. The four (4) dimensions that comprise the business performance variable are as follows: financial perspective, customer perspective, internal process perspective, and learning and growth perspective. The outer model explains how the relationship between service operation strategy variables, service delivery strategies, and PT. Pertamina (Persero) -Teluk Kabung Integrated Terminal with each dimension and its constituent indicators is specified. The analytical model will be displayed in several test parameters measured by the outer model, including Convergent Validity, Average Variance Extracted (AVE), Composite Reliability, and Cronbach's Alpha. Figure 3 depicts the model used in this study.

Convergent Validity
The covergen validity value was determined by conducting a study on each loading factor obtained through model testing using a reflective relationship approach. Its primary goal is to determine the nature of the relationship between each indicator and the latent variables it measures. The minimum requirement for the factor loading value that is declared adequate is 0,50 or in the range of 0,50 -0,60, and it will be stronger if it reaches a minimum of 0,7. (Hair et al., 2013). a. The Dimensions and Indicators of Service Operation Strategy

. The Dimensions and Indicators of Business Performance
The following variable is business performance, which describes the extent to which PT. Pertamina (Persero) -Teluk Kabung Integrated Terminal achieves each of its business targets, which include financial, customer, internal process, and learning and growth perspectives. Figure 4.34 depicts the relationship between the business performance variables of PT. Pertamina (Persero) -Teluk Kabung Integrated Terminal with their dimensions using a balanced scorecard approach and all items that are part of the four balanced scorecard perspectives that are in accordance with organizational needs and produce factor loading.

Average Variance Extracted (AVE)
The next step of the outer model is to measure discriminant validity using Average Variance Extracted (AVE). According to Hair et al., (2013), the value of Average Variance Extracted (AVE) of a variable must be at least 0,5. Composite Reliability Hair et al., (2017) stated that the Composite Reliability measurement was used to test internal consistency if the value was greater than or equal to 0,6. The composite reliability value indicates the consistency value of each indicator used to measure the construct. The higher the value, the more consistent the indicator in describing the variable/dimension it measures. Table 7 shows the Composite Reliability (c) measurement results. Cronbach's Alpha (α) Hair et al., (2017) stated that the Cronbach's Alpha measurement was carried out to test internal consistency provided that the value was at least or equal to 0,6. The consistency value of each indicator used to measure the construct can be seen from the high or low value of Cronbach's Alpha. The higher the value, the more consistent the indicator describes the variable/dimension it measures.

The Structural Model (Inner Model) of the Relationship between Service Operation Strategy and Service Delivery Strategy
A structural model analysis was then performed to determine the relationship between the two independent variables in this study, that is: service operation strategy and service delivery strategy. In this research model, the relationship between service operations strategy and service delivery strategy is strong, as indicated by the value of latent variable correlations, which reaches 0,878. This connection makes a lot of economic sense. The role of these two variables together in improving the business performance of PT. Pertamina (Persero) -Teluk Kabung Integrated Terminal is also very crucial. The two variables bridge the organization's business processes, starting from the upstream process to the downstream process. The service operation strategy accommodates processes from upstream to midstream, while the service delivery strategy accommodates processes from mid to downstream. The service operation strategy is identical to a process dominated by internal activities, while the service delivery strategy is more identical to a process dominated by both internal and external activities.
These two variables are essential for enhancing PT. Pertamina (Persero) -Teluk Kabung Integrated Terminal's business performance. The business process of the organization begins with the management of Pertamina's finished products (BBM), which must then be channeled to the final consumer via the intermediary of gas station entrepreneurs. This necessitates PT. Pertamina (Persero) -Integrated Terminal Teluk Kabung's ability to control the operational aspects of its services and products. The demand for customer satisfaction, which in this study is also an indicator of one of the dimensions of the service delivery strategy variable, is one of the findings and expectations highlighted in the descriptive analysis.
To deliver services effectively, service operations must be strengthened, one of which is Pertamina's ability to provide various services and use information technology as needed. This is also consistent with the findings of Ramdhani et al., (2017), who discovered a strong direct proportional relationship between service delivery and customer satisfaction. Furthermore, the strength of the relationship between service operation and service delivery strategies will eventually attract more Pertamina business partners to collaborate or form strategic partnerships, particularly in the distribution and sale of fuel. When the collaboration of interested parties has truly provided benefits and value to each stakeholder, customer or partner loyalty will eventually be built. One of the expectations of business partners is the existence of various service needs or the assumption of a unique or unique service. This is also consistent with the findings of Akafia et al., (2017), who investigated the impact of service operations strategy on supply chain performance in automotive companies. The study determined the impact of Toyota Ghana Company Limited's new service strategy on supply chain performance (TGCL). This study was carried out to assess the impact of Toyota Ghana Company Limited's (TGCL) new service strategy on supply chain performance, which provides access to clients outside of the company's four coverage areas. The study's findings show that TGCL encourages businesses to implement new service strategies as part of the innovation process.

The Structural Model (Inner Model) of the Proposition of Service Operation Strategy Affects Business Performance
A structural model mechanism (inner model) is required to obtain the parameters needed to assess the extent to which the service operation strategy can improve the business performance of PT. Pertamina (Persero) -Integrated Terminal Teluk Kabung, including: coefficient of determination (R2), predictive relevance (Q2), and Goodness of Fit (GoF). According to the coefficient of determination test (R2), the ability of the service operation strategy variable to bring up the existence of business performance variables is quite strong, with a determination coefficient value of 0,739 or 73,90 percent, while variables not examined raise the remaining 26,10 percent. The value of predictive relevance (Q2) is measured to see how far the diversity of data in this study can examine the phenomenon of the problem. The results of the model analysis can explain 73,90 percent of the diversity of the data used to investigate the phenomena in the research model. The Goodness of Fit (GoF) index is used to predict the overall model by analyzing the results of the measurement and structural models. The GoF value is 0,837, which is considered high. The observations yielded the expected GoF score, which was assigned to the appropriate category.

The Structural Strategy Model (Inner Model) of the Proposision of Service Delivery Can Improve Business Performance
A structural model mechanism (inner model) is required to obtain the parameters needed to assess the extent to which the service delivery strategy can improve the business performance of PT. Pertamina (Persero) -Integrated Terminal Teluk Kabung, including: coefficient of determination (R2), predictive relevance (Q2), and Goodness of Fit (GoF). The ability of the service delivery strategy variable to generate the existence of the business performance variable is quite strong, with a coefficient of determination of 0,763 or 76,30 percent, while variables that are not examined raise the remaining 23,70 percent. The results of the model analysis can explain 76,30 percent of the diversity of the data used to investigate the phenomena in the research model. Based on the calculation results, it is possible to conclude that the model belongs to the high category. The observations show that the GoF value is in line with expectations, indicating that the model is in the appropriate category.

Hypothesis Test
H1: service operation strategy has a strong relationship with service delivery strategy.
The analysis results show that the latent variable correlation of the relationship between the service operation strategy variable and the service delivery strategy variable is 0,878, indicating that the two variables in this study are strongly correlated. The strong relationship between service operation strategy and service delivery strategy as determined by causality analysis using latent variable correlations is very reasonable. The two variables connect the organization's business processes from upstream to downstream. The service operation strategy accommodates processes from upstream to midstream, whereas the service delivery strategy accommodates processes from midstream to downstream. The service delivery strategy is more similar to a process dominated by both internal and external activities than the service operation strategy. This is also consistent with Akafia et al., (2017)'s research, which discovered that service operations strategies motivate service delivery strategies.
H2: Service operation strategy has a positive and significant effect on business performance The population correlation coefficient (R2) of 0,739 is not equal to zero. As a result, the second hypothesis, that service operation strategy has a positive and significant effect on business performance, is supported. Partially, the service operation strategy has a relatively strong determinant impact on the business performance of PT. Pertamina (Persero) -Integrated Terminal Teluk Kabung. This is consistent with Arias-Aranda (2002) research, which emphasizes service operation strategy, flexibility, and company performance. The research provides contributions or findings that demonstrate that the Service Operations Strategy has a significant direct and positive effect on financial and non-financial performance.
H3: Service delivery strategy has a positive and significant impact on business performance The population correlation coefficient (R2) of 0,763 is not equal to zero. As a result, it is possible to conclude that the service delivery strategy has a positive and significant impact on business performance. The service delivery strategy is critical for improving the business performance of PT. Pertamina (Persero) -Teluk Kabung Integrated Terminal. The organization's business process begins with the management of Pertamina's finished products (BBM), which must then be distributed to final consumers via the intermediary of gas station entrepreneurs, which leads PT. Pertamina (Persero) -Integrated Terminal Teluk Kabung to be able to control the service operational and services delivery aspects. The demand for customer satisfaction, which in this study is also an indicator of the service delivery strategy variable, is one of the findings and expectations highlighted in the descriptive analysis.
Several important findings emerged from the results of the service operation strategy variable investigation, including: PT. Pertamina (Persero) -Teluk Kabung Integrated Terminal is still regarded as inadequate in regards to achieving business performance, particularly in terms of customer satisfaction. The majority of gas station owners in West Sumatra believe that if PT. Pertamina (Persero) -Integrated Terminal Teluk Kabung focuses on the customer, the company's performance will improve. The second finding is in the area of responsiveness, where the majority of gas station owners believe PT. Pertamina (Persero) -Integrated Teluk Kabung still does not have adequate response time when consumers require it. This could indicate that the organization is satisfied with its current progress and is not prepared to adapt if the environment changes abruptly. To be able to deliver services effectively, certain competencies must be strengthened, one of which is Pertamina's ability to provide various (typical) services and use information technology as needed. This is also consistent with the findings of Ramdhani et al., (2017), who discovered a strong direct proportional relationship between service delivery and customer satisfaction. Meanwhile, service operations are critical to service delivery.
The service delivery strategy will eventually entice more Pertamina business partners to collaborate or form strategic alliances, particularly in the distribution and sale of fuel. When the collaboration of interested parties has truly provided benefits and value to each stakeholder, customer or partner loyalty will eventually be built. When business partners perceive the benefits and value, it has the potential to increase the loyalty of partners who are shown repeat purchases or word-of-mouth promotions. This is also consistent with the findings of Daddie and Akani's (2020) study of online retail in Rivers State, which provided insight into the relationship between service delivery strategies and customer satisfaction. This study's major finding are repeat purchases and word-of-mouth promotions, which provide understanding into how organizations can develop appropriate service delivery strategies to improve business performance. As a result of mutually beneficial cooperation, success in improving business performance will eventually attract this business and foster customer loyalty.