The Management of Street Vendors Using Diamond Model and Partial Least Square-Path Modeling (PLS-PM)

The Sidoarjo Government in managing street vendors (PKL) often focus on controlling the location and maintenance of the environment. While the real problems faced by street vendors are much more complex, covering issues of financial management, human resources, operations and sales. Conducting a conducive climate with effective management will increase the scale of its business without ignoring the order, cleanliness and beauty of the city. The model of PKL management in this study uses a diamond model from Porter (1990) that is formed from several factors, namely conditions, demand, supporting and related industries, strategy, competition and local government policy. Partial Least Square-Path Modeling Analysis (PLS-PM) is used to determine the factors that have influence on the policy of structuring street vendors. The data were obtained from the street vendors in Sidoarjo. Processing and data testing using SmartPLS 2.0 software support. The final result shows that factors that have a great influence on the management of street vendors are demand, strategy and business competition, and local government policy. Of the three factors, the most influential is the strategy and business competition.