The Influence of DKUPP Performance Quality on Service Quality of E-UMKM through Performance Management in Probolinggo City

The performance of government state officials needs to be improved as they shall deliver quality public services. In particular, public service improvement should regard the advancements of information communication technology and utilize innovative programs. The government of Probolinggo City has launcehed E-UMKM card program as an innovative program. E-UMKM card program plays a pivotal role in supporting and empowering micro, small, and medium enterprises (MSMEs). This research was conducted to investigate the influence of state officials’ performance quality on service quality, with a specific focus on performance management. This descriptive quantitative was conducted between January and February 2023 in Probolinggo City. Questionnaires, observation, and documentation techniques were employed for data collection from 100 respondents, which were subsequently analyzed using Smart-PLS. The findings revealed that the Performance Quality of DKUPP Probolinggo City State Officials can positively impact the improvement of Public Service Quality moderated by performance management in the E-UMKM Card Program.


Introduction
The government plays a crucial role in delivering public services by managing administrative services, providing goods services, and offering various services (Sutojo, 2015). It is essential to enhance the performance of the state officials to ensure better quality. The quality of the Officials' performance in the public sector serves as an indicator of goal achievement. Key factors contributing to the quality of Officials performance include their potential abilities, optimization of work results, work processes, and enthusiasm (Hasibuan, 2003). Government administration necessitates that the State Civil Officials demonstrates integrity, professionalism, neutrality in political matters, abstention from corrupt practices, and contributes to national unity and integrity (Indrastuti, Suryani and Radiyah, 2016). The effectiveness and efficiency of the Officials' work determine the quality of their output. All of these aspects are defined in the Law of the Republic of Indonesia Number 5 of 2014, which addresses the State Civil Officials.
Good public services contribute to positive evaluations of government officials, whereas poor public services lead to negative ratings of the Officials. Public services serve as a benchmark for assessing the government's performance in delivering services to the public sector (Aprilia Hapsari, Muhammad Guntur and Rukmana, 2021) (Sururi, 2019). As a result, the performance of government Officials can be evaluated directly by the public or through public feedback (Zulfahmi, 2018) (Damayanti, 2019). The Decree of the Minister of Administrative Reform Number Kep/25/M.PAN/2/2004 outlines the General Guidelines for Compiling Public Satisfaction Indexes for Government Agency Service Units, which highlights the importance of public satisfaction in evaluating government performance.
Furthermore, public services are increasingly aligning with the advancements in communication and information technology (Wakhid, 2017) (Firman, 2015). As society enters the modernization era, it is crucial for the public sector to continuously innovate in order to facilitate the community's needs effectively (Pratiwi, 2019). Public services that prioritize innovation not only exhibit good governance but also serve as a testament to bureaucratic reform efforts (Darmi, 2016) (Sandiasa, 2018). These principles are outlined in the Ministry of State Civil Officials Empowerment and Bureaucratic Reform (KemenPAN RB) Number 30 of 2014, which provides guidelines for public service innovation.
These regulations serve as the legal foundation for government agencies to implement optimal innovations in public sector services (Rohman, Hanafi and Hardianto, 2019 important to note that innovation is not limited to the central government alone but can also be undertaken by regional governments in harmony with central government policies and legislation.
Moreover, the regional autonomy policy further facilitates the implementation of service innovations to cater to the needs of local communities.
Probolinggo City is also committed to implementing service innovations for the local community. This effort aims to inspire government agencies, businesses, and the general public to foster innovation in their respective work environments. Aligned with Probolinggo City's program, which is guided by the motto "Building a Culture of Innovation Towards a Great and Reliable Probolinggo City" (Setda Kota , one notable initiative introduced by the City Government of Probolinggo is the E-UMKM card program. This program serves as a manifestation of Probolinggo CityGovernment's support for the development and empowerment of micro, small, and medium enterprises (MSMEs) (DKUPP Kota Probolinggo, 2020). The E-UMKM card plays a crucial role as an official tool for data collection and support for MSMEs (Dinas Kominfo Kota Probolinggo, 2022). The benefits of the E-UMKM card encompass various aspects: it acts as a form of identification and legal proof for individuals, business owners, or specific activities, ensuring the validity of the data; it provides certainty and protection for businesses at agreed-upon locations; it offers assistance in business development; it facilitates access to financial institutions, both banks and non-banks, in terms of cost or capital; and it streamlines the distribution of support, including obtaining discounts on expedition costs for product delivery, as well as empowerment and guidance from the central government, local government, and other institutions (DKUPP Kota Probolinggo, no date).  (Hasibuan, 2003) suggests the following criteria: 1. Self-potential: This refers to the abilities and strengths of employees, both those that have been realized and those that have yet to be fully utilized. It includes individual capabilities that may not have been fully explored or optimized. performance. It encompasses factors such as organizational productivity, the quality of work performed, and the quantity of work completed.
3. Work process: This indicator emphasizes the steps taken by employees in carrying out their duties and responsibilities within the organization. It involves expertise in developing work plans, creativity in task completion, evaluation of performance actions, and continuous improvement. 4. Enthusiasm: This indicator relates to the attitude of employees towards their work and their commitment to providing services. It encompasses aspects such as attendance, task completion, motivation in performing tasks, and overall commitment to their roles.
Performance management, also known as performance management system, is a companydeveloped framework aimed at enhancing employee competence in alignment with organizational goals. The system supports managers in evaluating employee competencies and improving their performance. Effective implementation of performance management can contribute to increased organizational profits, as enhanced employee competence and performance positively impact overall professionalism. Van Dooren, Bouckaert and Halligan (2015) view performance management as a systematic approach that encompasses the performance of individuals, groups, and organizations, all of which are integrated to improve organizational effectiveness holistically.
Performance management involves providing feedback to individuals, supervisors, and the organization itself regarding organizational performance in line with predetermined objectives.
Performance management can be delineated as follows (Saputra and Nugroho, 2021 The Public Service Law No. 25 of 2009 defines public services as "activities or a series of activities carried out to fulfill the service needs of every citizen and resident in accordance with statutory regulations. These services encompass the provision of goods, services, and administrative services by public service providers." Service quality, on the other hand, refers to the optimal delivery of services that fulfill the needs, desires, expectations, and levels of satisfaction of the public as recipients of these services. According to Parasuraman's perspective

Reliability
Service quality represents the desired outcome of the service process as perceived by the public. Throughout this process, the public expects to receive optimal feedback. On the other hand, employee performance refers to the actions and behaviors carried out by individuals or groups that are reported to relevant parties. This reporting is done to assess the level of targets and achievements within the organization, aligning them with the organizational vision, and evaluating the positive and negative impacts of policies. It is evident that good and accurate performance directly impacts the delivery of optimal service (Anggraini, 2017). The relationship between performance quality and service quality is closely intertwined. Performance quality significantly influences service quality. This connection is explained in the theory put forth by Lewis and Booms (1983), which states that "service quality is a measure of how well a service meets customer expectations." Based on the premise that providing service quality entails consistently meeting customer expectations, it can be inferred that the measurement of service quality is contingent upon the level of performance exhibited by employees while delivering services to the public.

Research Method
This research employed a descriptive quantitative approach to assess the Quality of while secondary data sourced from the results of prior research that employed the same method.
These literatures were used to strengthen the existing theories.
The target population for this research were community leaders in Probolinggo City who possessed a comprehensive understanding of the E-UMKM Card Program, as well as MSME owners in the city who have received the E-UMKM Card program. The sample size for the study was determined to be 96 respondents which was then rounded up to 100. These 100 respondents were selected using random sampling techniques based on the predetermined sampling criteria to ensure that their answers aligned with the intended direction of the questionnaire's questions or statements. Samples were individuals who possessed E-UMKM Card including regional officials, community organizations or NGOs, academics (including both lecturers and students), community leaders, and MSME owners in Probolinggo City. A Likert scale was employed in this research to assess responses in different levels: strongly disagree (1), disagree (2), neutral (3), agree (4), and strongly agree (5).
Partial Least Squares (PLS) analysis was employed in data analysis. PLS analysis is a multivariate statistical technique used to compare multiple dependent and independent variables.
Three tests were administered. The first test focused on assessing the validity of the data, which is crucial for drawing accurate conclusions. The second test examined the reliability of the instrument to ensure its trustworthiness. Meanwhile, mediation test was conducted to examine the significance of the relationship between variable X and variable Y, with the moderation of variable M.
Research variables are essential guidelines established by researchers to investigate and gather information pertaining to a particular subject. Research variables of this study are specified as follows.

a) Independent Variables
Independent variables influence and cause changes or cause dependent (bound) variables.
The independent variable in this research is the Performance Quality of DKUPP (X) Officials with five dimensions, namely, tangible, reliability, responsiveness, assurance, and empathy.

b) Dependent Variables
The dependent variable plays a significant role in affecting the independent variable. In this particular study, the dependent variable is the service quality within the DKUPP (Y) program, which is measured using four indicators as guidelines: self-potential, optimal work results, work processes, and enthusiasm.

c) Moderating Variables
Moderating variables play a crucial role in either strengthening or weakening the direct relationship between independent and dependent variables. These variables have the ability to influence the nature or direction of the relationship between the variables. The relationship between the independent variable and the dependent variable can be either positive or negative, depending on the specific characteristics of the dependent variable.
Thus, the moderating variable acts as a contingency variable. In the context of this research, the moderating variable being examined is Performance Management in the implementation of the E-UMKM (M) Card program, which encompasses four indicators as guidelines: performance planning, performance communication, performance evaluation, and performance development.

Service Quality (Y)
Evaluation of consumer perceptual reflection on the service received within a specific period of time. Service quality is determined based on its importance in the dimensions of service  (2015) Likert Scale

Performance management (M)
Performance management will provide feedback to employees, supervisors, and the organization on their tasks in order to achieve organizational goals. Quality of officials on the public Service Quality

Results and Discussions
As seen in the    The obtained √AVE values for Quality of Officials Performance (X), Public Service Quality (Y), and Performance Management (M) are above 0.5. This indicates that these variables demonstrate reliability.

b. Composite Reliability
Composite reliability can be evaluated by assessing the indicators using two measures: composite reliability and Cronbach's alpha. Generally, a construct is considered reliable if the composite reliability value exceeds 0.7 and the Cronbach's alpha value is above 0.6. The composite reliability values of Officials Performance Quality (X), Public Service Quality (Y), and Performance Management (M) that were analyzed are satisfactory, as they exceed 0.70 for composite reliability and surpass 0.6 for Cronbach's alpha. This enables the possibility of conducting further analysis by assessing the goodness of fit of the model through an evaluation of the inner model.

Inner Model
The inner model was used to predict the correlation between latent variables through the significant value and R-square of the research model  Table 6. The R-Square value for the service quality variable is determined to be 0.596. This indicates that 59.6% of the variation in the service quality variable can be accounted for by the combined influence of transactional leadership and policy quality, which act as moderating factors. The remaining 40.4% of the variation is attributed to other variables that were not specifically examined in this research.

Hypothesis Testing
The

Moderation Test
Moderation testing was implemented using the SmartPLS application as a supporting tool, employing the bootstrapping procedure. In this testing, the p-value of the path coefficient and the p-value of the moderation element were crucial. To classify a moderation variable as increasing strength or moderating the influence of the independent variable on the dependent variable, the pvalue had to be below 0.5. If the p-value in moderation exceeded 0.5, it indicated that the moderating variable could not influence the strength or moderate the influence of the independent variable on the dependent variable. Recommendations were proposed to provide insights for the government in formulating policies and implementing innovative approaches to enhance public services, particularly in improving welfare, addressing community needs, and fostering regional development. To enhance service quality, government officials should adhere to procedural standards and stay abreast of programmatic and technological advancements. The community, particularly business entities, should leverage government programs and embrace public sector service innovations.
Furthermore, academics are encouraged to enhance scientific research in this domain. These recommendations stem from the limitations of the present research, including time constraints, the need for a more representative sample size, and the potential for more detailed variables to reinforce the data.