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The Effect of Productivity and Innovation on the Competitiveness of Batik SMEs in West Java Indonesia

Author

Listed:
  • Yana Hendayana

    (Universitas Pendidikan Indonesia, Universitas Widyatama, Bandung, Indonesia Author-2-Name: Suryana Author-2-Workplace-Name: Universitas Pendidikan Indonesia, Bandung, Indonesia Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)

Abstract

Objective � This research aims to test the effect of productivity and innovation toward competitiveness of batik SMEs in West Java. Methodology/Technique � The study uses Partial Least Square (PLS) for data analysis, as well as an explanatory method and simple random sampling. Findings � The results of the data testing show that competitiveness is effected by productivity and innovation by 71.7%. Novelty � The objective of this study is to analyse the gap in productivity and innovation and its effect on the competitiveness of batik SMEs in West Java Indonesia. Batik centre in West Java was developed by the government in collaboration with the private sector to increase the level of production of batik SMEs. In reality, there is a gap in productivity between written batik and stamped batik. Written batik design innovations and production methods need to be improved to compete and survive in the batik industry. Porter (1995:5) describes competition as the core of the success or failure of firms. Productivity of written batik has declined in the past 5 years. From recent BPS data, processed by the Pusdatin Ministry of Industry 2017, the industry has declined by around 10% per year between 2012 and 2017. Type of Paper: Empirical

Suggested Citation

  • Yana Hendayana, 2019. "The Effect of Productivity and Innovation on the Competitiveness of Batik SMEs in West Java Indonesia," GATR Journals jmmr204, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:jmmr204
    as

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    References listed on IDEAS

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    5. M.N. Qureshi & Dinesh Kumar & Pradeep Kumar, 2007. "Modeling the logistics outsourcing relationship variables to enhance shippers' productivity and competitiveness in logistical supply chain," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 56(8), pages 689-714, November.
    6. Miguel Acosta Molina & Idaira Barrios del Pino & Alicia Correa Rodríguez, 2004. "Industry, management capabilities and firms' competitiveness: An empirical contribution," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 25(5), pages 265-281.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Productivity; Innovation; Competitiveness; Batik; Small and Medium Enterprises.;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other

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