Research Article
Building Small-Medium Industry Institution Towards Sustainable Dynamic Small Industry
@INPROCEEDINGS{10.4108/eai.6-12-2018.2286306, author={Oesman Raliby and Effendi Bin Mohamad}, title={Building Small-Medium Industry Institution Towards Sustainable Dynamic Small Industry}, proceedings={Proceedings of the 1st Sampoerna University-AFBE International Conference, SU-AFBE 2018, 6-7 December 2018, Jakarta Indonesia}, publisher={EAI}, proceedings_a={SU-AFBE}, year={2019}, month={8}, keywords={sme’s institution dynamic industry sustainable structural equation modelling}, doi={10.4108/eai.6-12-2018.2286306} }- Oesman Raliby
Effendi Bin Mohamad
Year: 2019
Building Small-Medium Industry Institution Towards Sustainable Dynamic Small Industry
SU-AFBE
EAI
DOI: 10.4108/eai.6-12-2018.2286306
Abstract
Putting SME’s as the primary basis in development takes good commitment and coordination amongst stakeholders, government, people in business, and a non-business institution as well as the local community by applying the aggressive institution-based strategy. The research aims to construct an institutional framework model of small and medium-sized enterprises to become a dynamic, sustainable and robust business group. The approach used was FGD with some SME’s businessmen by using Participative Rural Appraisal in exploring the wishes of the institutional business development. The result of this activity showed the frame of competitiveness model of SME’s in Indonesia, which described several factors that support dynamization and competitiveness of SME’s. The Goodness of Fit test showed that the Adjusted R-squared value was 0.365 and 0.667. Several factors gathered were a set of institutional development factors that include actor empowerment and resources connectivity factors. SME’s developers rarely raise the last two elements. The previous two factors moderate external and internal factors as significant as 36.5% and 66.7%. The influence of these two factors can contribute to the institutional resilience of SME’s so that small industries can be more dynamic, competitive, independent and sustainable.
