Education Quarterly

Reviews

Prihantoro, C. R. (2023). Outcome Based Education (OBE) Based Vocational

Education Model in the Era of Artificial Intelligence (AI). Education Quarterly
Reviews, 6(1), 228-240.

ISSN 2621-5799

DOI: 10.31014/aior.1993.06.01.701

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Electronic copy available at: https://ssrn.com/abstract=4350830

 The Asian Institute of Research
Education Quarterly Reviews
Vol.6, No.1, 2023: 228-240
ISSN 2621-5799
Copyright © The Author(s). All Rights Reserved
DOI: 10.31014/aior.1993.06.01.701

Outcome Based Education (OBE) Based Vocational

Education Model in the Era of Artificial Intelligence (AI)
Constantinus Rudy Prihantoro1

1
Technology and Vocational Education Study Program (Master Program), Universitas Negeri Jakarta -
Indonesia

Correspondence: Constantinus Rudy Prihantoro, Technology and Vocational Education Study Program (Master
Program), Universitas Negeri Jakarta – Indonesia. E-mail: [email protected]

Abstract
This study is to analyze AI indicators in terms of workforce needs relevant to the industry in the application of the
OBE-based vocational education. Two models of the vocational education model were developed, namely the
creative vocational education model (CVEM) and the performance vocational education model (PVEM). Model
testing uses SEM to confirm theoretical models depicted in path diagrams with empirical data to see correlations
between constructs built into path diagrams. The research population was two groups, namely industrial
practitioners, and vocational teachers. Researchers found significant positive effects of AI capabilities on CVEM,
PVEM, and significant influence of CVEM on PVEM. The vocational education organizational model influenced
by OBE accounts for variances related to creativity, and variance in performance. The vocational education
organization model provides evidence of a positive relationship between OBE-based AI capabilities with CVEM
and PVEM, as well as the very significant positive influence of CVEM on PVEM.

Keywords: Artificial Intelligence (AI), Outcome-Based Education (OBE), Creative Vocational Education Model
(CVEM), Performance Vocational Education Model (PVEM)

1. Introduction

1.1 Introduce the Problem

Artificial intelligence (AI) has a major impact on education in supporting school administration (such as class
scheduling, staff scheduling, facilities management, finance, cybersecurity, safety, and security). The use of AI to
support learning is widely practiced by students and teachers ( (Wayne Holmes, 2019).

One of the AI applications developed in education is intelligence tutoring systems (ITS). According to Alkhatlan,
A. and Kalita, J. (2019) called ITS is a computer program that uses AI techniques to provide tutorials intelligently.

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Asian Institute of Research Education Quarterly Reviews Vol.6, No.1, 2023

AI helps to simulate step by step learning materials according to subject topics in a structured and well-defined
manner, such as mathematics or physics subjects (Wayne Holmes, 2019).

Educators who are lagging in the use of digital technology and AI, will certainly face problems in preparing their
graduates to become the workforce needed in the workforce and industry. OBE (Outcome Based Education) is
very important to anticipate the needs of the workforce in Industry 4.0. The role of teachers will look different,
but it will always be important its role as a provider of the skilled workforce that the industry needs to ensure it
remains globally competitive (News, 2020).

Pastore, F. (2018) states that the industrial revolution 4.0, which is still ongoing, is a process of various aspects
that involves several innovation processes in the fields of robotics, artificial intelligence, renewable energy
sources, digitization of production and consumption patterns and so on. The consequences of the labor market
become important, since most of the existing jobs will be destroyed, robot replaces labor, not only routine work,
but also work that requires creativity.

1.2 Explore Importance of the Problem

By 2030, the industrial revolution is likely to demand high-skilled and highly specialized jobs. How will this new
skill be acquired? Vocational Education and Training (VET) is an option available. Therefore, VET must include
research-based knowledge and the participation of practitioners (worker users). In this way, the academic shift
away from VET appears to be two-sided, one side is the knowledge-based process, and the other side is that all
types of work require more skills and are constantly updated (Markowitsch & Hefler, 2019).

Jörg Markowitsch (2019) also argues that education is a solution to prepare humans for future changes. Vocational
education must step forward to carry out reforms that are appropriate for the future (News, 2020). What is the
future reform of vocational education? Is OBE relevant to the vocational education model influenced by the
industrial era 4.0? Does AI make a significant contribution to the learning process of OBE-oriented vocational
education?

This study analyzes AI indicators in terms of relevant workforce needs in the industry and designs an OBE-based
vocational education model.

1.3 Describe Relevant Scholarship

1.3.1 Outcomes Based Education (OBE)

OBE is a process that involves the practice of assessment and evaluation in education to reflect learning
achievement and demonstrate mastery in the program area. OBE is oriented towards predetermined tangible results
that include knowledge, abilities, and behaviors. OBE involves the restructuring of curriculum, assessment and
practice that reflect the learning achievement and mastery level of that accumulated educational process. OBE's
focus is on student learning by (1) Using learning outcomes that are known, understood, or carried out by students;
(2) Provide learning activities to achieve learning outcomes; and (3) Assess learning outcomes that meet the
criteria.

Macayan (2017) in the Educational Measurement and Evaluation Review revealed that the optimal benefits of
OBE can be realized if schools seriously implement it as a philosophical foundation of outcomes-based education.
Rohman (2018) in his paper sorted OBE in four PDCA-based implementation criteria, namely Criterion 1:
Graduate Competency Orientation (Plan), Criterion 2: Implementation of Learning (Do) which includes
curriculum, departments/sections, student and academic atmosphere, facilities, and institutional responsibilities.
Criterion 3: Assessment of Expected Learning Outcomes (Check) and Criterion 4: Continuous Improvement
(Action). Based on these criteria, it was developed into an indicator of OBE achievement in the implementation
of education (OBE instrument).

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Asian Institute of Research Education Quarterly Reviews Vol.6, No.1, 2023

In Prihantoro's research (Prihantoro, 2020) stated that the implementation of OBE in vocational high schools is in
accordance with the needs of the workforce in the industrial era 4.0, with a very high category of 94.8%. The
trend of utilizing AI is becoming an integral part of the digitization and automation process implemented with
internet of think (IoT) facilities.

1.3.2 Artificial Intelligence (AI)

AI is one aspect of modern life that most of us have consciousness with, yet we realize that we have very little
knowledge. In fact, for many, AI is synonymous with humanoid robots which are often illustrated with images of
robots or digital brains. Meanwhile, robotics is a form of AI that can move and interact physically with the world
that has been widely applied in a variety of ways and different contexts.

Artificial intelligence is sometimes considered unhelpful, some researchers prefer enhanced intelligence, which
retains the human brain as a source of intelligence, and positions computers and their programs as advanced tools
that humans can use to enhance or augment intellectual abilities. In this approach, computers are used to do what
humans find more difficult, such as finding patterns in large amounts of data. The debate over augmented
intelligence and artificial intelligence is bound to run and with artificial intelligence wins at least on popular use
even if augmented intelligence is more accurate or useful.

1.3.3 AI in Education

AI in education includes everything from instructional systems and AI-driven dialogues, it also includes students
interacting one-to-one with computers, students using mobile phones outside of the classroom, and many others.
The field of AI in education is derivative and innovative. AI generates problems and research questions how can
a student be helped to learn? Which teaching interaction styles are effective, and when should they be used? What
misconceptions do learners have about AI? (Woolf, 2008).

While AI as a tool in education needs to exemplify certain learning theories (such as "interactionalism" (Gagné,
1985 (4th Revised ed.)). AI in education effectively involves two main complementary parts: developing AI-based
tools to support learning and using these tools to help understand learning. In fact, the applications, and approaches
of AI in education that deal with the identified old and new problems are being researched, so what AI looks like
in education is still undiscovered.

Adopting an alternative approach to AI in education in several fields, it is relatively easy to identify because of the
AI devices that are already available. However, before doing so, educators need to understand the function of AI
and how AI works in an educational context. Challenge, pragmatic and ethical, from the perspective of AI
researchers and developers in education, educators, students, funders, and policymakers, this is the focus of the
research to be conducted.

1.3.4 The development of AI in Indonesia.

AI is intelligence added to systems to correctly interpret external data and manage that data and use processed
results for specific purposes (Goralski & KeongTan, 2020; Sousa, et al., 2019). Every invention in the form of
electronics, technology, and many other disciplines has been influenced by AI. The industry has changed to more
mechanical, more sophisticated machinery than ever before. AI is not just about robots, but also about
understanding the nature of intelligent thinking and acting using computers as experimental devices. Several
studies have shown that Europe and the US are pioneers in the application of AI (Shank & Gott, 2019; Sousa, et
al., 2019). Previous research has stated that AI is a system designed to interact with everyone in the world with
special abilities and intelligent habits like humans (Goralski & KeongTan, 2020; Shank & Gott, 2019; Sousa, et
al., 2019).

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Asian Institute of Research Education Quarterly Reviews Vol.6, No.1, 2023

In Indonesia, artificial intelligence is widely used in various sectors, namely industry, education, health, services
and production. In addition to the manufacturing industry that has applied artificial intelligence to production lines,
there are also many schools that have utilized learning outcome assessment systems using artificial intelligence
(Nasution, 2012). Government agencies also use artificial intelligence in carrying out their functions as regulators
of public services. The positive impact of implementing artificial intelligence is to reduce waiting time and
improve the quality of process or service results, while also facing quite a lot of challenges because it reduces
employment, in addition to requiring a high investment (Nasution, 2012).

AI in Indonesia is used by, among others, multinational companies, telecommunications companies, startups and
the Government. In its development, startups have a strategic role to accelerate the adoption of AI technology in
Indonesia. The growth of AI startups will also attract potential talents both domestically and internationally which
drives the dynamics of the AI industry ecosystem (Yogaswara, 2019).

1.3.5 Conceptualizing AI

The study by Ransbotham, et al. (2018) found that lack of technological competence is one of the biggest barriers
to the application of AI. Their findings highlight the fact that nearly one in five organizations do not understand
AI-related data requirements and the technological infrastructure for storing data. AI technology will develop very
quickly, just as organizational resources need to be developed to adapt to AI technology. These organizational
resources are what is needed to build AI capabilities for enterprises.

There are eight resources that constitute AI capabilities grouped into three categories based on the Grant
framework (Grant, 1991). (A) The primary source consists of (1) data, considered by managers to be one of
the possible keys in harnessing the potential of AI (Ransbotham et al. 2018). In recent years a lot has been written
about the opportunity to take advantage of big data (Mikalef et al., 2018). (2) Technology, a recent report published
by McKinsey highlights that the lack of technological infrastructure is one of the main barriers to adopting AI in
organizations (Chui, M & Malhotra, S, 2018). Since AI technology requires infrastructure investment at multiple
levels, this is proving to be a major obstacle for many organizations, especially those with fewer resources (Y.
Dwivedi, et al. 2019). (3) Resources, organizations must be able to provide time and financial resources that
allow delivering the expected results (Ransbotham et al., 2018). Schryen (2013) in a paper on IS refers to time
and financial investments as resources necessary to realize AI programs. Whereas (B) Human Resources consists
of (4) skills, previous research on digital capabilities has identified skills as an important pillar of human resources,
and (5) the ability to understand, research that notes that one of the most important barriers to realizing AI
programs is the lack of leadership to support AI (Fountaine et al. 2019), highlights that managers do not understand
AI technology. Leadership for AI initiatives ranks as one of the key barriers to adopting AI (Ransbotham et al.
2018). (C) Iklim Organizations essential to building AI, i.e. (6) internal consolidation is defined as "a state of
high shared values, commitment to achieving common goals, and collaborative behavior" (Souder, 1977).
Increasing internal consolidation will make organizations more agile and adaptable in implementing AI
applications and understanding employees between different parts will reduce time in deploying AI applications
or adapting to them (Appian, 2019), (7) changeability, AI applications introduce significant changes to
organizations about new activities, tasks, and processes. The ability to plan and manage change in organizations
is a means to realize the value of AI investments (Ransbotham et al. 2018), and (8) risky opportunities, risky
opportunity taking and a proactive attitude, are commonly associated with innovation and higher markets (Hanelt
et al., 2021). AI is one of the most exciting, value-added, and competitive parts of opportunity (Ransbotham et al.,
2018). Fountaine et al. (Fountaine et al., 2019) argue that organizations should be strategically oriented, not risk-
averse, agile, and adaptable.

The literature on the capabilities of AI states that for human tasks that perform repetitive processes, it does not
require creativity, are not complex, it can be replaced with automated machines. Humans can be diverted to tasks
that require creativity and their innovation capacity (Ågerfalk, 2020). AI technology drives human abilities, by
improving cognitive, skills and interacting with others will improve the ability to carry out more complex tasks to
achieve organizational goals (Wilson & Daugherty, 2018).

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Asian Institute of Research Education Quarterly Reviews Vol.6, No.1, 2023

1.4 State Hypotheses and Their Correspondence to Research Design

Recent literature in the capability’s domain of IT-enabled organizations states that the use of different IT can lead
to certain generational capabilities (Liu et al., 2020). Basically, the use of IT often has an indirect effect on key
performance indicators, by enabling specific organizational capabilities. Following the same logic, researchers
argue that AI capabilities can have an indirect effect on the performance of vocational education organizations,
through their effect on the creativity of vocational education organizations. Some performance indicators depend
on creative solutions that emerge in vocational education organizations.

Based on the above arguments, it can make the following hypothesis:

H1: AI capabilities will have a positive effect on CVEM.
H2: AI capabilities will have a positive effect on PVEM.
Y. Liu et al. (2020), suggest that AI capabilities can help generate knowledge within organizational boundaries,
which can then be leveraged to improve performance. Thus, the hypothesis proposed is as follows:
H3: CVEM will have a positive effect on PVEM.

2. Method

This research is descriptive quantitative research of causality. The purpose of this descriptive research is to draw
the facts, properties, and relationships systematically, factually, and accurately between the phenomena under
study. Research of causality in addition to measuring the relationship between two or more variables, also shows
the direction of the relationship between free variables and bound variables (making cause and effect problems).

2.1 Identify Subsections

Variable research is everything that is set by the researcher to be researched so that information is obtained which
is then drawn conclusions. Thereare three exogenous variables, namely the main source, human resources and
organizational climate, four endogenous variables, namely graduate competency orientation, learning
implementation, assessment of expected learning outcomes, and continuous improvement.

2.2 Participant (Subject) Characteristics

The target population is two groups, namely practitioners and vocational teachers in DKI Jakarta. Practitioner
respondents are practitioners in the industry with the formation of manager, supervisor/technician/operator, and
other positions, which are 15 people. There were 32 respondents of Vocational High School teachers in DKI
Jakarta who taught engineering.

2.3 Sampling Procedures

The sample is a portion of the population studied. The representation of the population by the sample in the study
is an important condition for generalization. In connection with the use of Structural Equation Model (SEM), that
if the sample size is too large, the model becomes very sensitive so that it is difficult to get a good goodness of fit,
then with PLS SEM it is enough to use a small sample size. Research conducted by Chin and Newsted (1999)
proved that using only 20 data they can use SEM correctly.

2.3.1 Sample Size, Power, and Precision

In this study, because the population was relatively small, the research used the total sampling method. With this
method of taking, it is hoped that the results obtained tend to be closer to the actual value and are expected to
minimize the occurrence of deviations from the population value.

2.3.2 Measures and Covariates

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Model testing in this study used SEM analysis technique, which is a statistical technique that allows testing a series
of relationships simultaneously.

Modeling research through SEM allows a researcher to answer research questions that are regressive or
dimensional, identify the dimensions of a concept or construct, and measure the influence of the relationship of
factors that can be identified as dimensions.

Model development uses SEM to confirm theoretical models with empirical data. A theoretical model is depicted
in a path diagram to see the causality relationship being tested. The correlation between constructs is built into a
path diagram such as Figure 1.

Figure 1: Path Structure Diagram

2.3.3 Research Design

In accordance with the purpose and benefits of This study, the design of this study uses a quantitative type that
aims to analyze the causality relationship between one variable and another through hypothesis testing. Overall
flow of the operational framework of the analysis carried out in the study, shown in Figure 2.

Through previous arguments about the role of AI in education, the role of technology makes educational
organizations more creative and improves their performance. The development of a vocational education model
in this research through a conceptual research model presented in Figure 2.

In fact, there are several documented cases in various industries where the AI applications used have resulted in
an increase in organizational creativity (Amabile, 2020). AI can also automate many manual processes that require
considerable time and human capital. If human resources are potentially involved in the creative process, then
educational organizations can innovate using AI technology for organizational purposes, thus allowing managers
to gain insights into understanding data and uncovering patterns and relationships (Raisch & Krakowski, 2021;
Paschen et al., 2020). AI has a direct effect on different performance indicators, which can reduce costs, increase
time to respond, cut production time and costs, and improve customer service to achieve an organization's vision
and goals.

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Asian Institute of Research Education Quarterly Reviews Vol.6, No.1, 2023

Figure 2: Model Preparation Research Paradigm

Preliminary studies have documented that a structured approach to applying AI can result in improved performance
for organizations, even AI automation methods have the potential to result in improved performance for vocational
education organizations. Indicators that affect the creativity and performance of vocational education organizations
are by measuring the performance of vocational education.

2.3.4 Experimental Manipulations or Interventions

2.3.4.1 Measurement models

As part of the validity assessment, researchers introduced two performance models to capture the effects that AI
capabilities have on the level of vocational education organizations. Therefore, researcher created two
organizational models, namely the CVEM and the PVEM which are influenced by OBE (Figure 2). The creative
vocational education model is seen based on the steps of OBE implementation, while the performance vocational
education model is operationalized based on the results obtained in the implementation of OBE. Both of vocational
education models were validated after being linked to the use of AI technology in the implementation of OBE-
based education. Researchers examine reliability and validity at the construct level and examine inter-correlations
between latent variables (Table 1).

2.3.4.2 Structural models

After establishing AI capabilities, researchers proceed to examine the validity of the construction of AI capabilities
and their relationship to CVEM and PVEM. Researchers define the CVEM as a model that is able to generate new
and constructive ideas in OBE-based vocational education. AI also has an impact on organizational activities,
therefore, researchers consider the PVEM appropriate to be tested for the influence of AI capabilities, to test two
hypothetical relationships, researchers use SEM analysis, in which variance is explained endogenous variable
(R2). The researcher verified the structural model by examining the value of the coefficient of determination (R2)
(Figure 3).

Researchers found significant positive effects of AI capabilities on the CVEM (R2=0.573), the PVEM (R2=0.50),
and the significant influence of CVEM on the PVEM (R2=0.294). The vocational education model influenced by
OBE accounts for variances related to creativity (R2 = 0.30), and variance to performance (R2 = 0.561). All values
are greater than the thresholds of 0.15 and 0.35, so researchers can conclude that vocational education models have
a medium to high effect size.

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Asian Institute of Research Education Quarterly Reviews Vol.6, No.1, 2023

Figure 3: Structural model of SEM analysis

Table 1: Direct Effects

3. Results

These results show that the interpretation disruptor i.e., OBE was not a problem in this study. Some recent studies
including the research of Wu et al. (2015) and Gupta and George (2016) have used this method to validate
formative constructs in their studies.

The two models described earlier, namely CVEM and PVEM are used as the base model. Therefore, the
researchers proceeded to examine two things, namely (1) comparing the correlations of the three measures of the
AI capability construct and the five measures of organizational creativity on the CVEM, and (2) comparing the
correlations of the three AI measures with the five measures of organizational performance on the PVEM. In
contrast to the correlation between measures of AI capabilities, (i.e.: primary sources, human resources, and
organizational climate) and measures of CVEM and PVEM across the base model, researchers found scores close
to zero as depicted in Table 2 and Table 3. Thus, the problem of weakened external consistency can be overlooked
in the study.

3.1 Statistics and Data Analysis

The results of the vocational education models provide strong evidence, a positive relationship between OBE-
based AI capabilities and the creativity and performance of vocational education models, as well as a very
significant positive influence of the CVEM on the PVEM.

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Asian Institute of Research Education Quarterly Reviews Vol.6, No.1, 2023

There are two AI capability paths that researchers propose, namely CVEM and PVEM, the model is as depicted
in Figure 4 and Figure 5. Thus, the creativity model of the CVEM and the PVEM as dependent variables.

Figure 4: Creative Vocational Education Model Structure

Table 2: Factor Score Weights

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Asian Institute of Research Education Quarterly Reviews Vol.6, No.1, 2023

Figure 5: Performance Vocational Education Model Structure

Table 3: Factor Score Weights

4. Discussion

This research was motivated by a surge in interest in the AI phenomenon by practitioners (industry) and academics
(educators). Literature from practitioners has been widely published, but in an educational environment there has
not been much research focused on AI. As a result, there has been a lot of discussion about AI, without clearly
defining what AI means in the context of Information Systems (IS), and there is no illustrated impact of AI on the
educational environment. This research takes insights into the use of AI in educational organizations, especially
vocational education that implements OBE-based learning. Researcher develops and validates the
conceptualization of AI capabilities in vocational education organizations that apply AI and OBE as modeling
indicators of vocational education organizations. Finally, this study developed an instrument to measure AI
capabilities in vocational education organizations that implement OBE, which empirically once validated, shows
that by developing AI capabilities, OBE-based vocational education organizational models can realize excellence
in organizational model creative and performance.

At the end of this discussion, the researcher provides suggestions for follow-up of the shortcomings of this research
for future research, as follows: First, that vocational education industries and organizations may need resources to
be able to invest in AI-enabled tool infrastructure, but vocational education industries and organizations do not
use the same AI tools, so there may be other dimensions that need to be added to future research. Second, when
researchers identify and explain AI's capabilities about the primary source of human power, and organizational

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Asian Institute of Research Education Quarterly Reviews Vol.6, No.1, 2023

climate, the researcher does not include elements of the initial process of how AI is initiated by the organization
and how the result will be. It is quite possible that organizations differ in policies in deciding to apply AI and
experience in the process of facing challenges and obstacles. Influencing the choice of applying AI to achieve
organizational goals and internal events in the organization needs to be further researched. Third, the researcher's
research used practitioner respondents who worked in industries in the capital of Indonesia. It is possible that
vocational education organizations from different regions, some are slow to adopt AI technology in the industry
and vocational education organizations, and there are also vocational education organizations that are not OBE-
based, will certainly do it in different ways. Surveying industries and vocational education organizations in
different regions and at the stage of implementing AI and OBE can uncover new patterns that are effective in
utilizing AI for the purposes of vocational education organizations in producing graduates needed by the world of
work in the industrial era 4.0.

Acknowledgments

I would like to thank you funding for this research. This research was supported by Lecturer Research Grant
provided by the Faculty of Engineering, Jakarta State University. (025a/5. FT/PP/V/2020).

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