Competitiveness and Policy Development of SME Clusters, Empirical Evidence in Indonesia

AuthorMa'ruf - Sidiq Permono Nugroho - Muzakar Isa - Anton Agus Setyawan
PositionFaculty of Economics and Business Universitas Muhammadiyah Surakarta, Jl. A. Yani Pabelan Kartasura Surakarta
Pages45-55
Vol. 3 No. 3
November 2017
ISSN 2410-3918
Acces online at www.iipccl.org
45
Academic Journal of Business, Administration, Law and Social Sciences
IIPCCL Publishing, Graz-Austria
Competitiveness and Policy Development of SME Clusters, Empirical Evi-
dence in Indonesia
Ma’ruf
Faculty of Economics and Business Universitas Muhammadiyah Surakarta
Jl. A. Yani Pabelan Kartasura Surakarta
Sidiq Permono Nugroho
Faculty of Economics and Business Universitas Muhammadiyah Surakarta
Jl. A. Yani Pabelan Kartasura Surakarta
Muzakar Isa
Faculty of Economics and Business Universitas Muhammadiyah Surakarta
Jl. A. Yani Pabelan Kartasura Surakarta
Anton Agus Setyawan
Faculty of Economics and Business Universitas Muhammadiyah Surakarta
Jl. A. Yani Pabelan Kartasura Surakarta
Abstract
The purpose of this study is to analyze SME clusters competitiveness based on 9 factors. Those
9 factors of competitiveness are raw materials, labor, product prices, markets, technology,
investment, management, and economic and socio-cultural base. The development of
SMEs is a part of long-term economic development to a ain a balanced economic structure.
Nevertheless, the gaps of resource potential, infrastructure and market lead to disproportional
dispersion of location as well as industrial lethargy. Regional economic development is de ned
as a process where the Academic, Business, Community and Government (ABCG) manage
the existing resources and establish an interrelationship among them to run the economy at
regional level. There are seven clusters of SMEs in Sragen regency including featured products
of the region. This study investigated the competitiveness of three clusters of SMEs, namely
batik cluster, convection cluster and furniture cluster based on the Criteria of Regional Superior
Products (PUD). The expected objectives of this study were to determine the contribution of
batik fashion, convection and furniture clusters to GRDP, poverty, and development of cluster
area/location as well as to provide inputs for the prevailing policy related to the improvement
of competitiveness of SMEs clusters. The inputs include the recommendation for the local
government to prioritize the policy for the development of batik cluster competitiveness
particularly on labor, raw material, management and pricing. In convection cluster, the
priority of development policy should be preoccupied on technology, market, investment and
economic base. Meanwhile, the socio-cultural aspects must be prioritized for the development
of furniture cluster competitiveness. Data was analyzed by using Analytic Hierarchy Process
(AHP) and Topsis Analysis.
Keywords: Economic potential, Competitiveness, SMEs cluster.

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