The Open System of Strategic Planning for the Development of Rural Autonomy in Riau, Indonesia

Hamim, Sufian and Indrastuti, Sri (2019) The Open System of Strategic Planning for the Development of Rural Autonomy in Riau, Indonesia. International Journal of Innovation, Creativity and Change, 10.

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Abstract

This study intends to explain the open system of strategic planning in the contextual development of rural autonomy. The aim is to analyse and explain the relationship between the preconditions of strategic planning, formulation of strategic plans, implementation of development programs and success of rural development. It will complete and reformulate the concepts and theories of strategic management and strategic planning using the results of research [Hunger and Wheelen, 1996; Steiner, 1979; and Mintzberg, 1994]. The concepts and theories of strategic management and strategic planning have not yet revealed the relationship of influence between environmental observation strategies. The research method used was an explanatory survey. As a population, all villages are spread across 10 regencies in Riau Province, totalling 1046 villages. The village sampling technique used was the Cluster Sampling method. The minimum number of samples, regarding responses from officials and members of the community (based on the Slovin formula), was obtained from 331 respondents. For implementation, in order to strengthen and sharpen the results of the analysis, a set consisted of 90 informants. Data collection techniques involved active participation observation, study documentation, interviews and questionnaires. The data analysis techniques were carried out using a qualitative and quantitative approach. The first involved observation and interviews with informants. The second involved a statistical test using Structural Equation Modelling (S.E.M). The results of the study indicate that the pattern of the relationship between environmental observation of the strategy and the implementation of the strategy is inversely proportional. If the effect of observing the strategic environment on the implementation of the strategy is very strong, then the effect of the formulation of the strategy on the implementation of the strategy, through an intervening emergent strategy, becomes very weak, and vice versa. If the effect of environmental observation on strategy implementation is very strong, then the effect of strategy formulation on strategy implementation becomes very weak, and vice versa. These events are the result of fast, continuous changes in the internal and external environment. Observing the strategic environment is not only useful for the formulation of plans but also necessary when implementing the strategy. Thus, strategic planning will be effective. So will the effect of the strategy in the implementation of the influence of the formulation of the strategy. Thus, strategic planning will be effective and efficient when the formulation of a strategic plan approaches the actual or contextual environmental conditions. When implementing programs, activities and projects, the strategies that emerge do not really affect this research. This reaffirms that there is no reason to doubt the effectiveness of the open plan system that has been formulated. There are strategic outcomes in the rural planning of government organizations. Although rural organisations are still simple, there are principles and elements in their application and development. This applies to primitive organisations and the most modern organisations, in public, social and business organisations.

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