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PUBLISHED DATE: - 03-08-2024
https://doi.org/10.37547/tajiir/ NICSPEEP-2024-01-07
ANALYSIS OF SOCIO-ECONOMIC FACTORS THAT
INFLUENCE THE LEVEL OF PUBLIC SERVICE
SATISFACTION IN MEDAN CITY
Nalom Siagian
HKBP Nommensen University, Indonesia
INTRODUCTION
Public services in several regions, such as
provinces, districts/cities, are a form of obligation
for leaders to implement concepts which are
development concepts for society, where to ensure
public services run effectively, the government
often implements a monitoring and evaluation
system. Apart from that, active community
participation in providing input and reporting
problems is also very important to improve service
quality (Kagarmanova, Ainur, 2022) .
This public service includes bureaucratic services
in terms of services to the community regarding
RESEARCH ARTICLE
Open Access
Abstract
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sudden responses, massive responses and
spontaneous responses to find solutions to every
problem in society and problems in government
(Lawrence, Akinluyi Muyiwa, Oluwatoyin & and
Charles, 2018 ) .
Apart from bureaucratic services, public services
consist of health services, such as hospital services,
health clinics, vaccination programs and public
health services. Apart from that, there are forms of
educational services ranging from elementary,
middle school, high school and tertiary education
services, services in the form of security, such as
police, fire and ambulance services, infrastructure
services, such as road maintenance, provision of
clean water and electricity services (Ebhote,
Oseremen and Nkebem, 2019) .
Apart from the services described above, there are
other services in the form of transportation
services, such as public transportation services,
traffic management services, airport and port
services. There are other social services in the form
of social assistance services, orphanages and
nursing homes, as well as rehabilitation services
(Haryadi, 2022) .
There are several things that influence the public
services of a government, such as regulatory
factors and legal rules, such as the policies
implemented by the government which determine
how public services are managed and delivered,
where these policies are synchronized with making
laws relating to public services (Efthymiou ,
Dimitrios, 2018) .
There are other factors, namely economic and
social factors, where these factors consist of
people's income, where the level of income
influences an individual's ability to access certain
services and influences expectations regarding the
quality of services, and people with low economic
status may have limited access to quality services
or facing obstacles in accessing basic services
(Kamalulil, Errna Nadhirah, Panatik, Siti Aisyah
and Sarwar, 2021) .
Other factors, such as employment status, where
good, stable and formal employment status tend to
provide better access to services, such as health
insurance and education. Stable work will increase
income, and will enable people to pay for health
and education facilities, and be able to create stable
health, where increased satisfaction with health
and education services can be felt by the
community through access and use of health
facilities, because they are able to pay and can be
served well (Radu, Florin, 2022)
There are also social condition factors, such as
social norms that give rise to a culture of service in
each region, where service is the most absolute and
essential thing in order to create a form of excellent
service, as well as creating a form of magic from the
satisfaction of users of public services, thus
influencing the will of users, namely people to
continue using the services they have (D, Gashi, R,
Halimi and H, 2023) .
Excellent service will provide a form of quality
service and tends to make users (the public) will
always use existing service products if the service
provided tends to be able to create the most
superior and quality form of service, where quality
service for public services is a service that meets or
exceed community expectations in terms of
efficiency,
effectiveness,
accessibility
and
responsibility (Gabinete, Greta, 2022) .
Services are provided quickly without calculating
accuracy and quality. Services that are easily
accessible to all levels of society, including those in
remote areas or who have special needs. Services
that are responsive to community needs and
complaints, with an effective feedback mechanism
(Gamaliel, Hendrik, Kalangi & and Warongan,
2022) .
Medna City is one of the cities that does not provide
good public services, where during the period of
2022 the number of people served was 40%, while
in 2023 the number of people served was 33%.
This occurs because there is still an opinion that
public services require users who have funds,
where everyone who has maximum income will
tend to take advantage of access to public services,
while for those with minimal income, it will be
difficult to access public services. This is a
challenge in itself for the Medan City Government
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to always serve the community well, where
existing public services still apply old methods.
Those who have money and good jobs can access
public services, on the other hand, those who lack
money and don't have permanent jobs will find it
difficult to get access to public services. , so that it
has an impact on decreasing public satisfaction
with public services in the City of Medan, thus
affecting the low quality of service which results in
the service and performance of the Medan City
Government also being low. Apart from that, social
conditions that have not yet implemented
appropriate and appropriate norms, namely
serving the community, are still not being
implemented well, so this will have an impact on
decreasing service satisfaction, which will make
the quality of the services provided less good and
have an impact on decreasing the performance of
the Medan City Government.
FORMULATION OF THE PROBLEM
The problem formulation that emerges from this
research is how the variables of people's income,
employment status, and social conditions influence
increasing public service satisfaction through the
quality of public services as an intervening
variable.
RESEARCH PURPOSES
The aim of this research is to determine and
analyze the extent to which variables of people's
income, employment status and social conditions
influence increasing public service satisfaction
through the quality of public services as an
intervening variable.
RESEARCH ORIGINALITY
The subjects of this research are the
residents/community of Medan City, where the
variables in this research are independent
variables, namely people's income, employment
status, and social conditions, the dependent
variable, namely the variable increasing
satisfaction with public services and the
intervening variable is the variable quality of public
services . The results of data analysis used SEM
analysis using SMART PLS 4.0 software. Data
collection techniques through questionnaire
studies.
LITERATURE REVIEW
Public service
Public services are various types of services
provided by the government, both at the national,
regional and local levels, to meet the needs and
interests of society. This service aims to improve
people's welfare and covers various areas such as
health,
education,
security,
infrastructure,
transportation and administrative services (Gunes,
Huseyin Nihat and Bilek, 2020) .
The forms of public services include health
services, security services, social services,
education services, infrastructure services and
transportation
services
and
infrastructure
services, as well as administrative services
(Romero-Subia, Jose Fernando, 2022) .
The indicators of public services are:
1.
There is good service
2.
User satisfaction
3.
Measurable service
4.
Improving service quality (Ma, Liang and
Zheng, 2019) .
Community Income
Community income is something that is obtained
from people's work abilities, where this income is
obtained from people's efforts to carry out real
work according to their field (Matraeva, Liliia
Valerievna, 2020) . Public income is the amount of
money an individual or household earns in a
certain period of time, usually a year, from various
sources such as salaries, wages, business profits,
investments, and government transfers. People's
income is one of the important economic indicators
that reflects the economic and social well-being of
a population (del Río-Vázquez, María-Elena
Sánchez, Rodríguez-Rad, Carlos J. and Revilla-
Camacho, 2019) .
Community income indicators are:
1.
Education
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2.
Skills
3.
Economic conditions (NVE, Mazibuko and
MA, 2019) .
JOB STATUS
Employment status Refers to a person's
employment situation or conditions in the
workforce. This includes the type and
characteristics of work, employment relationships,
and job stability and security. Employment status
can affect income, access to welfare services, and
an individual's overall well-being (Masuku, Mfundo
Mandla, Mlambo, Victor H. and Ndlovu, 2022) .
By understanding various employment statuses
and the factors that influence them, individuals and
policy makers can make better decisions to
improve the quality and stability of employment in
society (Le
kić, Nemanja, 2019) .
Employment status indicators are:
1.
Economic conditions
2.
Geographic conditions
3.
Level of education
4.
Demographics (Chien, Nguyen Ba and
Thanh, 2022)
Social Conditions
Social conditions refer to the state of society which
includes various aspects of life, such as economic
well-being, social relations, education, health,
culture and security. Social conditions affect the
quality of life of individuals and communities as
well as general welfare (Sari, 2021) . By identifying
and addressing factors that influence social
conditions, policy makers and community leaders
can work towards improving the quality of life and
overall well-being of society (Atanasov, P., 2018)
Indicators of social conditions are:
1.
Economic factors
2.
Education
3.
Improvement of public services (Paramita,
Puteri, 2018) .
Increasing Public Service Satisfaction
Improving the quality of public services is one of
the main goals of the government and public
organizations to ensure community welfare.
Strategic steps that can be taken to improve the
quality of public services include various aspects of
management, technology, human resources and
community participation (Mohd Wahid, Siti
Daleela, 2020) .
The benefits of increasing public service
satisfaction are:
1.
Increasing community welfare
2.
Public trust and satisfaction
3.
Improved quality of life
4.
Increasing community participation (Austin,
Trecy and Hestiriniah, 2021) .
Indicators of increasing satisfaction with public
services are:
1.
Service availability
2.
Quality of service
3.
Transparency and accountability
4.
Efficiency and effectiveness (Salisu, Umar
Obafemi, 2019) .
Quality of Public Services
The quality of public services is a measure of how
well the services provided by the government or
public organizations meet the needs and
expectations of the community. High quality public
services reflect efficiency, effectiveness and user
satisfaction (Valarmathi, 2018) . The aim of public
service quality is to ensure that the services
provided by the government or public
organizations meet or even exceed the
expectations and needs of society. By achieving this
goal, public services can contribute to community
welfare, operational efficiency, and trust in public
institutions (Peng, Xin Xin and Zhang, 2022) .
Public service quality indicators:
1.
Increase community satisfaction
2.
Increase transparency and accountability
3.
Improving economic prosperity
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4.
Strengthening community participation
(Yuan, 2021) .
CONCEPTUAL FRAMEWORK
The description of the research conceptual
framework is:
Figure 1 Conceptual Framework
Hypothesis
1.
People's income influences increasing
satisfaction with public services
2.
Employment status influences increasing
satisfaction with public services
3.
Social conditions influence increasing
satisfaction with public services
4.
People's income influences the quality of
public services
5.
Employment status influences the quality of
public services
6.
Social conditions influence the quality of
public services
7.
The quality of public services influences
increasing public service satisfaction
8.
People's income influences increasing
satisfaction with public services through the
quality of public services as an intervening variable
9.
Employment status influences increasing
public service satisfaction through public service
quality as an intervening variable
10.
Social conditions influence increasing public
service satisfaction through public service quality
as an intervening variable.
RESEARCH METHODS
Method This research was conducted using
quantitative descriptive methods using structural
equation model (SEM) analysis methods, which
according to (Austin, Trecy and Hestiriniah, 2021)
stages in SEM, including model specification,
parameter estimation, model testing, and model
modification . The population in this study was
2,494,512 residents of Medan City in 2023, where
the sampling method was carried out using the
accidental sampling method , where according to
(Jakit, Fathin Hanani Abdul, 2023) the sampling
method using accidental sampling is a sampling
method. The samples are located around the
research location.
The number of samples taken can be done using the
Slovin formula as follows:
n = N / ( 1 + Ne² ) = 2,494,512 / (1 + 2,494,512 x
0.1²) = 99.99 = 100 inhabitants of Medan City .
Peningkata
n
Kepuasan
Layanan
Publik
Pendapatan
Masyarakat
Status
Pekerjaan
Kondisi Sosial
Kualitas
Pelayanan
Publik
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RESEARCH RESULT AND DISCUSSION
RESEARCH RESULT
Descriptive Testing
Descriptive testing was carried out by analyzing
the characteristics of respondents from a cluster of
93 students in the 100 population of Medan City .
The
descriptive
analysis
regarding
the
characteristics of respondents according to the
following table is:
Table 1 Characteristics of Respondents
Variable
Category
Frequency
Percentage (%)
Gender
Man
55
55
Woman
45
45
Age
20-24 Years
41
41
25-30 Years
50
50
31-50 Years
8
8
The table above explains that the respondents who answered the most questions based on gender were
male respondents at 55% or 55 respondents, while the respondents who answered the least questions
were female respondents at 45% or around 45 respondents. Characteristics of respondents based on age,
those who answered the most questions were respondents in the 25-30 year age range, 50% or 50
respondents, while those who answered the least were respondents in the 31-50 year age range, 8% or
8 respondents.
The output from the SEM test can be described through the following Bootstrapping diagram:
Figure 2 Bootstrapping diagram
PM
PM
2
PM
3
SP
1
0,8
44
0,8
65
KPP
PKLP
PKL
P 1
PKL
P 2
PKL
P 3
PKL
P 4
0,8
87
0,8
45
0,8
31
5,2
45
5,1
20
5,4
20
6,3
32
SP
2
PM
1
0,8
72
0,8
41
0,8
43
0,8
24
SP
0,7
50
KPP
1
KP
P 2
KPP
3
6,4
60
0,8
66
4,5
37
0,8
80
6,6
50
0,7
63
SP
3
KS
KS 1
KS
2
KS 3
0,8
79
0,8
80
0,8
67
5,4
43
4,2
68
4,5
21
SP
4
0,7
71
KPP
4
0,7
87
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Convergent Validity Analysis
(Jakit, Fathin Hanani Abdul, 2023) states that convergent validity analysis is a process for assessing how
well the indicators designed to measure a particular construct really correlate with each other . The
results of the convergent validity test in this research are as follows:
Table 2 Test Convergent Validity
Variable
Indicator
Outer
Loading
Community
Income (X
1
)
PM 1
0.865
PM 2
0.872
PM 3
0.844
Employment
Status (X
2
)
SP 1
0.841
SP 2
0.750
SP 3
0.866
SP 4
0.771
Social
Conditions
(X
3
)
CS 1
0.879
CS 2
0.880
CS 3
0.867
Increase in
Public
Service
Satisfaction
(Y)
PKLP 1
0.831
PKLP 2
0.845
PKLP 3
0.887
PKLP 4
0.843
Quality of
Public
Services (Z)
KPP 1
0.880
KPP 2
0.763
KPP 3
0.824
KPP 4
0.787
Source: Data Processing Results with PLS 3.0, 2024
The table above states that the existing data is feasible and suitable to be submitted for data analysis in
subsequent research .
Average Variant Extracted (AVE) Analysis
(Jakit, Fathin Hanani Abdul, 2023) states that the AVE test shows how much variance is captured by a
latent construct compared to the error variance. The Average Variant Extracted (AVE) test results are in
the following table:
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Table 3 AVE Test
Variable
AVE
Community Income (X
1
)
0.837
Employment Status (X
2
)
0.877
Social Conditions (X
3
)
0.867
Increase in Public Service Satisfaction (Y)
0.847
Quality of Public Services (Z)
0.857
Source: Data Processing Results with PLS 4.0, 2024
The table above states that the Average Variant
Extracted (AVE) value is greater than 0.5, which
means that the existing construct equation is valid
and worthy of being submitted for data analysis for
subsequent research .
Composite Reliability Analysis
According to (Zhou, Xiaogang, 2021) Composite
Reliability testing is used to assess the internal
consistency of indicators that measure a latent
construct in Structural Equation Modeling (SEM)
and Confirmatory Factor Analysis (CFA). CR is
similar to Cronbach's alpha, but is considered more
accurate in the context of SEM because it takes into
account the factor loading of each indicator. This
can be seen in the following table:
Table 4 Composite Reliability Test
Variable
Composite Reliability
Community Income (X
1
)
0.884
Employment Status (X
2
)
0.824
Social Conditions (X
3
)
0.764
Increase in Public Service Satisfaction (Y)
0.873
Quality of Public Services (Z)
0.883
Source: Data Processing Results with PLS 4.0, 2024
The table above states that value Composite
reliability is greater than 0.6 significance, meaning
that the existing construct data is reliable and
suitable for use in subsequent research.
Discriminant Validity Analysis
In confirmatory factor analysis (CFA) or structural
equation modeling (SEM), discriminant validity
analysis is the ability of a construct to truly differ
from other constructs in the model. The results of
the Discriminant Validity analysis can be seen in
Table 5 below:
Table 5 Discriminant Validity Analysis
Increasing
Public
Service
Satisfaction
Moderating
Effect 1
Increasing
Public
Service
Satisfaction
Moderating
Effect 2
Increasing
Public
Service
Satisfaction
Moderating
Effect 3
Increasing
Public
Service
Satisfaction
Moderating
Effect 4
Increasing
Public
Service
Satisfaction
Effect 5
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Community
Income
,751
1,000
,786
,617
,786
Job status
,665
,733
1,000
,722
,834
Social
Conditions
,751
,786
,835
,765
1,000
Increasing
Public
Service
Satisfaction
1,000
,755
,665
,636
,755
HR
Development
,617
,627
,756
1,000
,759
Source: PLS Data Processing Results, 2023
Based on the table above, it can be seen that the AVE value of the construct equation is greater and has a
greater difference from other construct equations, which means that there is no influence between the
construct variables on Discriminant Validity .
Path Coefficient Testing
As for the path coefficient test , it can be seen from this table:
Table 6 R Square Test
Variable
R Square
Community Income (X
1
)
0.882
Employment Status (X
2
)
0.822
Social Conditions (X
3
)
0.862
Increase in Public Service Satisfaction
(Y)
0.872
Quality of Public Services (Z)
0.852
Source: Data Processing Results with PLS 3.0, 2023
From the existing table, the R Square value of the variable increasing satisfaction with public services
can be explained by the variables people's income, employment status, social conditions and quality of
public services, amounting to 87.2%, while the remaining 12.8% can be explained by other variables
which are not discussed. through study This .
Hypothesis testing
The results of hypothesis testing can be seen in the following table:
Table 7 Hypothesis Testing
Hypothesis
Influence
T-Statistics
P-Value
Results
H1
Community income
increases
6,332
0,000
Accepted
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satisfaction
with
public services
H2
Employment status
on increasing
satisfaction with
public services
5,120
0.001
Accepted
H3
Social conditions
towards increasing
satisfaction with
public services
4,537
0.002
Accepted
H4
Community income
on the quality of
public services
6,460
0,000
Accepted
H5
Employment status
on the quality of
public services
5 ,420
0,000
Accepted
H6
Social conditions on
the quality of public
services
4,268
0.001
Accepted
H7
The
quality
of
public
services
towards increasing
public
service
satisfaction
5,245
0,000
Accepted
H8
Community income
increases
public
service satisfaction
through
public
service quality as an
intervening
variable
6,650
0.001
Accepted
H9
Employment status
on increasing public
service satisfaction
through
public
service quality as an
intervening
variable
5,443
0,000
Accepted
H10
Social
conditions
towards increasing
public
service
satisfaction through
public
service
quality
as
an
intervening
variable
4,521
0,000
Accepted
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Source: Data Processing Results with PLS 3.0, 2023
According to the table above, it can be concluded
that partially the variables of people's income,
employment status and social conditions have an
influence on increasing satisfaction with public
services and influence the quality of public
services. Simultaneously, the variables of people's
income, employment status and social conditions
influence increasing public service satisfaction
through the variable quality of public services as an
intervening variable.
DISCUSSION
Community Income Influences Increasing
Satisfaction with Public Services
The results of the research state that people's
income has an effect on increasing satisfaction with
public services . This is in accordance with research
(Haryadi, 2022) which states that people's income
will tend to pay more for the services provided and
will tend to have high expectations for good service
and will also increase satisfaction when they use
these public services.
Employment Status Influences Increasing
Public Service Satisfaction
The research results explain that employment
status has an effect on increasing satisfaction with
public services . This is in line with research (Radu,
Florin, 2022) which states that employment status
will tend to have easier access to public satisfaction
in order to increase satisfaction with public
services and make service users always use these
services.
Social Working Conditions Influence the
Increase in Public Service Satisfaction
According to research results, social condition
variables have an influence on increasing
satisfaction with public services . This is in
accordance with research (Gamaliel, Hendrik,
Kalangi & and Warongan, 2022) which states that
emerging social conditions will tend to make State
officials have to always increase their capacity in
serving the community, so that it will have a high
impact on satisfaction with the services that will be
provided. given.
Community Income Influences the Quality of
Public Services
The research results state that people's income
influences the quality of public services . This is in
accordance with research (Kamalulil, Errna
Nadhirah, Panatik, Siti Aisyah and Sarwar, 2021)
which explains that people who have good incomes
will be able to increase access to public services,
where public services that are easily accessible
now are inseparable from increasing quality. public
services provided through the implementation of a
system that makes it easier to assist existing public
services.
Employment Status Influences Improving the
Quality of Public Services
The research results show that the employment
status variable influences the quality of public
services. This situation is in line with research
(Gabinete, Greta, 2022) which states that good
employment status will tend to be able to open and
access an agency's public service system which
gives hope for continuing to improve the services
provided.
Social Conditions Influence the Improvement of
the Quality of Public Services
The research results show that variables Social
conditions influence the quality of public services.
This is in accordance with research (Gunes,
Huseyin Nihat and Bilek, 2020) which explains that
increasing the quality of service will have an impact
on improving the social conditions of government
officials to always provide more services.
Public Service Quality Influences Increasing
Public Service Satisfaction
The results of the research explain that public
service quality variables have an influence on
increasing public service satisfaction. This is in line
with research (Ma, Liang and Zheng, 2019) which
states that the better the quality of services
implemented must be in line with increasing public
service satisfaction to always use the services
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PSYCHOLOGY (NICSPEEP 2024))
85
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provided by the Government.
Community Income Influences Increasing Service
Satisfaction Public Through Quality of Public
Services as an Intervening Variable
The research results show that the income variable
influences
community
participation
in
development through the quality of public services
as an intervening variable . This is in accordance
with research (Romero-Subia, Jose Fernando,
2022) which explains that the role of people who
have good incomes will tend to be served with good
access to services and will make the quality of
service even better, so that it will make people feel
high satisfaction regarding the services provided.
Employment Status Influences Increasing Service
Satisfaction Public Through Quality of Public
Services as an Intervening Variable
The research results show that the income variable
influences
community
participation
in
development through the quality of public services
as an intervening variable . This is in accordance
with research (D, Gashi, R, Halimi and H, 2023)
which states that high employment status will
make it easier to access public services and make
people as users easily served and create
satisfaction in using these services. , so that it will
improve the quality of services provided.
Social Conditions Influence the Increase in Service
Satisfaction Public Through Quality of Public
Services as an Intervening Variable
The research results show that income influences
community participation in development through
the quality of public services as an intervening
variable. This is in line with research
(Kagarmanova, Ainur, 2022) which states that the
better the social conditions of society, the easier it
will be to serve public services, which will make
users satisfied in using public services, and will
tend to improve the quality of existing services.
IMPLEMENTATION
Increasing people's income, good employment
status and social conditions that require the Medan
City Government to implement the principle of
maximum service will tend to have an impact on
improving service quality and increasing
satisfaction with the public services provided to
the community.
CONCLUSION
From the results of this research, the conclusions
are that partially the variables of people's income,
employment status and social conditions have an
influence on increasing satisfaction with public
services and influence the quality of public
services. Simultaneously, the variables of people's
income, employment status and social conditions
influence increasing public service satisfaction
through the variable quality of public services as an
intervening variable.
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