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The Role of Entrepreneurial Marketing in the Indonesian Agro-Based Industry Cluster to Face the ASEAN Economic Community

Author

Listed:
  • Ma’mun Sarma

    (Department of Management, Faculty of Economics and Management, IPB University, Bogor 16680, Indonesia)

  • Stevia Septiani

    (Department of Management, Faculty of Economics and Management, IPB University, Bogor 16680, Indonesia)

  • Marthin Nanere

    (Department of Management and Marketing, La Trobe Business School, La Trobe University, Melbourne, VIC 3083, Australia)

Abstract

The agro-industry plays an important role in the Indonesian economy. However, Micro, Small and Medium Enterprises (MSMEs) in this industry face various challenges to be competitive, one of which is the implementation of the ASEAN Economic Community (AEC) agreement. The study aims to develop a model for the agro-industry Micro-Small Medium Enterprises to face the ASEAN Economic Community (AEC) using entrepreneurial marketing approaches. This research was conducted at three centers of agro-based industry clusters in Indonesia. The respondents were business actors representing the leading Micro-Small and Medium Enterprises (MSMEs) in the fruit-processing industry cluster, fish processing industry cluster and milk processing industry cluster. Primary data collection was conducted through structured interviews using close ended questionnaires. This study used Structural Equation Modelling analysis with a Partial Least Squares (PLS) approach to develop a model of enhancement for the agro-industry clusters in dealing with AEC. The findings suggest that the entrepreneurial marketing has significant impact in increasing business development and business competitiveness. The MSMEs possessing great competitiveness would be more ready to penetrate their business into other ASEAN markets. In addition, supportive government policies that encourage and improve innovativeness can significantly increase the entrepreneurial marketing ability.

Suggested Citation

  • Ma’mun Sarma & Stevia Septiani & Marthin Nanere, 2022. "The Role of Entrepreneurial Marketing in the Indonesian Agro-Based Industry Cluster to Face the ASEAN Economic Community," Sustainability, MDPI, vol. 14(10), pages 1-14, May.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:10:p:6163-:d:818879
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    References listed on IDEAS

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    1. Samuel Afriyie & Jianguo Du & Abdul-Aziz Musah, 2019. "Innovation and marketing performance of SME in an emerging economy: the moderating effect of transformational leadership," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-25, December.
    2. Sarstedt, Marko & Hair, Joseph F. & Ringle, Christian M. & Thiele, Kai O. & Gudergan, Siegfried P., 2016. "Estimation issues with PLS and CBSEM: Where the bias lies!," Journal of Business Research, Elsevier, vol. 69(10), pages 3998-4010.
    3. Kumar, Ruchira, 2017. "Targeted SME Financing and Employment Effects : What Do We Know and What Can We Do Differently?," Jobs Group Papers, Notes, and Guides 27547256, The World Bank.
    4. Ferdi Nazirun Sijabat, 2018. "Entrepreneurial Orientation, Barriers, Business Networks, and Internationalization Readiness: A Conceptual Framework for the SMEs," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 8(3), pages 95-102, July.
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    Cited by:

    1. Liou-Yuan Li & Ahmad Mujafar Syah & Muhammad Syukur & Rachatawan Limkanchanapa & Chamaiporn Srisurat, 2023. "Sustainable Micro, Small, and Medium Enterprises: A Developed Model of Entrepreneurial Marketing Behaviors for Thailand’s MSMEs," Sustainability, MDPI, vol. 15(17), pages 1-18, August.

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