An Assessment of SME Competitiveness in Indonesia
Setyawan Agus Anton, Isa Muzakan, Wajdi Farid Muhammad, Syamsudin,
Nugroho Permono Sidiq
Keywords:
Competitiveness, level of innovation, entrepreneurship, business strategy.
Abstract:
The purposes of this study are to analyze source of SME competitiveness in selected industry
clusters in Indonesia and to develop a theoretical model of SME competitiveness. This study
employs quantitative design with multivariate model. We develop three models of estimation by
using multiple regression analysis. Our models are based on Porter Model of Competitiveness
(1990) which contains factor condition, demand condition, related and supporting industries
and business strategy. Findings in this study idenntify sources of the competitiveness of SME in
the level of innovation, entrepreneurship, human capital, financial resources, potential market
and business strategy. Limitation of this study lies in the SME model of competitiveness based
on cross sectional data which is not feasible for analysis of the dynamic aspect of competitiveness
sources. Our findings show that SMEs need government assistance to develop marketing
networks and access to financial institutions.
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10.7441/joc.2015.02.04
Setyawan A. A., Isa M., Wajdi F. M., S., Nugroho P. S.(2015). An Assessment of SME Competitiveness in Indonesia. Journal of Competitiveness, 7 (2), 60-74 https://doi.org/10.7441/joc.2015.02.04
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