The Role of Government in Technology Transfer to SME Clusters in Indonesia: Micro-level Evidence from the Metalworking Industry Cluster in Tegal (Central Java)

2008 ◽  
Vol 36 (2) ◽  
pp. 321-349
Author(s):  
Tulus Tambunan

AbstractIt is evident everywhere that levels of productivity are higher in large enterprises (LEs) and foreign-owned enterprises than in small and medium enterprises (SMEs), partly because they have higher levels of technology capacity. Thus increasing the productivity of SMEs might be facilitated through improved knowledge or technology. The literature on the development of SME clusters in developing countries argues that clusters are an effective means for technology transfer to SMEs and that government can play as the main source of technology transfer to the clusters, especially in regions where production linkages between LEs and SMEs are not yet well developed. This study indeed shows that in Indonesia government agencies are currently the largest providers of training and similar assistance. However, these programmes are marred by a low level of coverage, lack of effective evaluation and assessment, and a supply rather than demand orientation. The case study of the Tegal metalworking industry also shows that the most important channels for the transfer of technology to SME clusters are not only government agencies but also sub-contracting arrangements with LEs.

2006 ◽  
Vol 24 (2) ◽  
pp. 72-104 ◽  
Author(s):  
Tulus Tahi Hamonangan Tambunan

It is evident everywhere that in manufacturing industry, levels of productivity are higher in large enterprises (LEs), including foreign-owned firms or multinational companies (MNCs), than in small and medium enterprises (SMEs), partly because the former enterprises enjoy higher levels of technological capacity. Thus, for SMES, increased productivity might be facilitated through a scaling-up of knowledge or technology. The case study of the Tegal metalworking industry in Central Java presented in this article shows that the most important channels for the diffusion of knowledge/technology among domestic manufacturing SMEs include subcontracting arrangements with foreign direct investment (FDI). However, the importance of FDI as a source of technology/knowledge varies across the differing types of domestic firms. This study also shows that government agencies are currently the largest providers of training and similar assistance for manufacturing SMEs in the country. Such programmes, however, are rendered less effective by a low level of coverage, a lack of effective evaluation and assessment, and a supply rather than a demand orientation.


Author(s):  
Mudasetia Hamid ◽  
Evy Rosalina Widyayanti

Yogyakarta is a city and the capital of Yogyakarta Special Region in Java, Indonesia. It is renowned as a center of tourism, education and culture. Yogyakarta is one of the foremost cultural centers of Java. This region is located at the foot of the active merapi vulcano. Yogyakarta is often called the main gateway to the Central Java as where it is geographically located. It stretches from Mount Merapi to the Indian Ocean. This province is one of the most densely populated areas of Indonesia. Yogyakarta is popular tourist destination in indonesia after Bali. These have attracted large number of visitors from across Indonesia and abroad to the city. This status makes Yogyakarta is one of the most heterogeneus cities in Indonesia. In edition, Yogyakarta has attracted large number of people to reside in this city for business. One of these comers is small entrepreneurs with their market munchies enterprise (specially a traditional snack trader). This business is one of famous business in Yogyakarta, we will find rows of pavement vendors selling market munchies. The students and tourists are their main target customers. Market munchies enterprise is part of small and medium enterprises SMEs as livelihood activities. SMEs has an important role in economic growth of Indonesia. Therefore, it is very important to develop and strengthen the micro enterprise empowerment. Micro enterprise empowerment is one of strategy to reduce the poverty rate in Indonesia. Major challenger in implement this program are that micro entrepreneurs are conventional and have satisfied with their revenue. It is very important to develop a comprehensive and sustainable micro enterprise empowerment which consist of strengthen the quality of human resources, maximize the government’s roles, empower the enterprise capital and strengthen the partnership and autonomous. Micro enterprise autonomy will contribute to the economic and investment climate. This will lead to establish an accountable enterprise both for the micro enterprise and customers which at the end will strengthen the development of the micro enterprise in Yogyakarta.Keyword: micro entreprise, human resources, government roles, capital, partnership and autonomous.


2020 ◽  
Vol 5 (1) ◽  
pp. 59-65
Author(s):  
Ardyan Firdausi Mustoffa ◽  
Ika Farida Ulfah ◽  
Iin Wijayanti

This study aims to describe the role of local government and the participation of Micro, Small and Medium Enterprises in the development of Plastic Woven Crafts in Karanggebang Jetis Village, Ponorogo Regency. The theory used in the formulation of the first problem regarding the role of local government uses the theory of Gede Diva (2009) which divides the role of government in three ways, namely the role of government as a facilitator, the role of government as regulator and the role of government as a catalyst. Second, the participation of UMKM actors uses the theory of Cohen and Uphoff in Distianto (2016) into four forms of participation, namely participation in planning, participation in implementation, participation in the utilization of results and finally participation in evaluation.This research uses the descriptive qualitative method. The technique of determining informants using purposive sampling techniques and data collection techniques carried out through interviews, observations, and documentation. The results of this research in the efforts to develop UMKM Plastic Weaving Crafts in Karanggebang Jetis Village, Ponorogo Regency, in general, there has been no interference from the government and UMKM entrepreneurs. So far, plastic woven crafts are still not developed. To develop UMKM especially plastic woven handicrafts located in Karanggebang Jetis, it is necessary to have the role of government and participation of UMKM actors.


2019 ◽  
Vol 9 (3) ◽  
pp. 102
Author(s):  
Nguyen Xuan Trung ◽  
Dang Thai Binh ◽  
Dang Thi Thuy ◽  
Dong Thi Thuy Linh

SMEs account for a large propotion and play an important role in the development of each country in the world, including India. The globalization will bring many advantages for enterprises however SMEs will face fierce competition at the local, national and international level. In order to maintain and promote the important role of SMEs in the context of increased competition, SMEs have to change and adopt new technologies. E-commerce and digital technologies are bringing opportunities to help SMEs improve their competitiveness, narrow the gap with big enterprises thanks to their fairness and flexibility of the digital business environment. According to UNIDO (2017), India is one of the countries successfully applying e-commerce to SMEs. Contributing to this success is the important role of the Indian government. Therefore, this paper focuses on researching the application of e-commerce to SMEs in terms of the role of government in promoting and creating ecosystem for SMEs and e-commerce development.


Author(s):  
Aulia Ardhian Ayuningtyas ◽  
Miyasto Miyasto ◽  
Yohanes Sugiarto

Economic development in Indonesia MSMEs has an important role because the majority of Indonesia's population lives from MSME activities both in the traditional and modern sector. MSME in Central Java is also quite good. However, MSMEs in Central Java also experienced an increase in competitiveness, especially with similar businesses. Therefore, entrepreneurs are required to be able to innovate and dare to explore the resources it has for its business can continue to grow and survive amid the competition. In this study, the authors explain the condition of competitiveness of SMEs in the Kudus Regency is the business of embroidery which from year to year always decreased. Based on the result of the theoretical study directing this study developed a model with five research variables covering entrepreneurial orientation, business environment adaptability, internal resources of company, competitive advantage, and company performance. The results of the analysis show that the entrepreneurship orientation does not positively affect the competitive advantage. The adaptability of the business environment positively affects the competitive advantage. Internal resources of the company positively influence the competitive advantage. Entrepreneurship orientation positively affects the company's performance. Internal resources of the company positively affect the company's performance. Competitive advantage positively affects the company's performance.


2015 ◽  
Vol 18 (3) ◽  
pp. 351
Author(s):  
Ag. Sunarno Handoyo

This study deals with marketing innovation, market orientation, and social capital in affecting the competitive advantage and marketing performance in Micro, Small, and Medium Enterprises (MSMEs) of embroidery in Central Java Province. In this respect, this study tried to test and analyze the effect of marketing innovation, market orienta-tion, and social capital on competitive advantage and marketing performance in Micro, Small, and Medium Enterprises (MSMEs) of embroidery in Central Java Province. The samples are 150 respondents as the owners of the embroidery business in Central Java Province. The technical analysis used is Structure Equations Modeling with AMOS Software version 22. The results show that: (1) marketing innovation has significant effect on competitive advantage; (2) market orientation has significant effect on competi-tive advantage; (3) social capital has significant effect on competitive advantage; (4) competitive advantage has significant effect on marketing performance; (5) marketing innovation has significant effect on marketing performance; (6) market orientation has significant effect on marketing performance; (7) social capital has no significant effect on marketing performance. The implication of this study is that the MSMEs of embroidery could improve marketing performance by increasing marketing innovation, market orientation, social capital and competitive advantage. This study also shows that competitive advantage is an intervening variable on marketing performance.


Author(s):  
Lyudmila M. Simonova ◽  
Anastasiia O. Dorokhova

This article aims to study the role of government instruments supporting export-oriented enterprises, which specialize in the production of non-resource and non-energy goods and services. In view of the increasing importance and potential of small and medium-sized enterprises, the authors, using economic analysis of the data of the Russian Federal Customs Service and the statistics of the Russian Export Center, have confirmed the need of such enterprises being the central element of the national system of support and development of exports. The results prove that the majority of export-oriented small and medium enterprises show interest in starting export activities, increasing its share, and seeking to expand the geography of their supplies. However, a number of factors prevent the foreign economic strategy, including lack of confidence and employees with export competencies, financial limitations, as well as complete inexperience when interacting with foreign counterparts and markets in general. The authors have determined that the insufficient level of competitiveness on part of the Russian producers requires a full-fledged support of the state authorities to stimulate non-resource and non-energy export. The statistical analysis of the recent years shows that the indicator of Russian competitiveness on foreign markets has not undergone serious changes due to the low competitiveness of the Russian exported goods, as well as insufficient knowledge and skills of export-oriented enterprises in terms of strengthening their position on new markets. The world experience shows that each nation puts their own priorities on the choice of export development direction. Based on a comparative analysis and classification of support measures in the European Union, the authors have identified the possibility of approximating the existing mechanisms for supporting small and medium export-oriented enterprises in the Russia. The results have revealed a linear relationship between the launch of programs to support export-oriented enterprises and the growth of foreign economic activity in general, as well as the relationship between such activities as the interaction with relevant ministries and agencies, the cooperation with key industry and business organizations, and the improvement of export conditions in Russia.


2020 ◽  
Vol 4 (1) ◽  
pp. 11-19
Author(s):  
Mudiantono Soekirman ◽  
Fajar Ayu Suryani

Business competition in the current era of globalization requires companies to have a strategy to win the market. Strategic management has an important role for the survival of the company. The existence of such competition is also felt by small businesses such as Small and Medium Enterprises (SMEs). The increase in the number of SME units in Central Java was not followed by an increase in average sales of SMEs. This study aims to analyze the effect of distribution channel, ERP implementation and entrepreneurial orientation on marketing performance with competitive advantage as an intervening variable. The population in this study were small and medium enterprises owners in Central Java. Six hypothesis were formulated for this study. To test those hypothesis, this study used 104 respondent. Structural Equation Model (SEM) was applied to this study using AMOS 24  as a tool. The results of this study shows that competitive advantage is the most variable in influencing the marketing performance, while this  competititve advantage has entrepreneurial orientation as highest variable in influencing it. This study suggests that if SMEs want to increase their marketing performance, they must increase  their competitive advantage. This competitive advantage can be increase by increasing the entrepreneurial orientation.


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