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Firm and Group Dynamics in the Small and Medium Enterprise Sector in Indonesia

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  • Berry, Albert
  • Rodriguez, Edgard
  • Sandee, Henry

Abstract

This paper discusses the role of clusters and subcontracting as factors in the evolution of small and medium firms in Indonesia during the last quarter century. It is argued that a number of such firms have become successful exporters of rattan furniture, wood furniture and garments on the strength of subcontracting relationships with foreign investors and buyers as well as agglomeration economies achieved by clustering in selected locations. Examples are provided to show that clustered enterprises are more likely to be in the exports business and to adopt product and process innovations as compared to more dispersed firms. Public policy support for fostering subcontracting links and cluster formation is also discussed. Copyright 2002 by Kluwer Academic Publishers

Suggested Citation

  • Berry, Albert & Rodriguez, Edgard & Sandee, Henry, 2002. "Firm and Group Dynamics in the Small and Medium Enterprise Sector in Indonesia," Small Business Economics, Springer, vol. 18(1-3), pages 141-161, Feb.- May.
  • Handle: RePEc:kap:sbusec:v:18:y:2002:i:1-3:p:141-61
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    Citations

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    Cited by:

    1. Theresia Gunawan & Jojo Jacob & Geert Duysters, 2016. "Network ties and entrepreneurial orientation: Innovative performance of SMEs in a developing country," International Entrepreneurship and Management Journal, Springer, vol. 12(2), pages 575-599, June.
    2. Rodríguez-Pose, Andrés & Tselios, Vassilis & Winkler, Deborah & Farole, Thomas, 2013. "Geography and the Determinants of Firm Exports in Indonesia," World Development, Elsevier, vol. 44(C), pages 225-240.
    3. Diana Sari & Quamrul Alam & Nicholas Beaumont, 2008. "Internationalisation of Small Medium Sized Enterprises in Indonesia: Entrepreneur Human and Social Capital," Working Papers in Business, Management and Finance 200801, Department of Management and Business, Padjadjaran University, revised Jan 2008.
    4. Thurik, A.R., 2008. "Entrepreneurship, Economic Growth and Policy in Emerging Economies," ERIM Report Series Research in Management ERS-2008-060-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    5. Markus Poschke, 2018. "The Firm Size Distribution across Countries and Skill-Biased Change in Entrepreneurial Technology," American Economic Journal: Macroeconomics, American Economic Association, vol. 10(3), pages 1-41, July.
    6. Semsa ÖZAR & Gökhan ÖZERTAN & Zeynep Burcu İRFANOĞLU, 2008. "Micro And Small Enterprise Growth In Turkey: Under The Shadow Of Financial Crisis," The Developing Economies, Institute of Developing Economies, vol. 46(4), pages 331-362.
    7. Rajesh SN Raj & Kunal Sen, 2016. "Moving out of the bottom of the economy? Constraints to firm transition in the Indian informal manufacturing sector," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-20, December.
    8. Ferri Kuswantoro & M. Mohd Rosli & Radiah Abdul Kader, 2012. "Innovation In Distribution Channel(S) & Cost Efficiency On Small & Medium Enterprise Scales’ Performance In Indonesia," Journal of Global Entrepreneurship, Global Research Agency, vol. 3(1), pages 42-67, July.
    9. Vial, Virginie & Hanoteau, Julien, 2015. "Returns to Micro-Entrepreneurship in an Emerging Economy: A Quantile Study of Entrepreneurial Indonesian Households’ Welfare," World Development, Elsevier, vol. 74(C), pages 142-157.
    10. Scott, Allen J., 2006. "The Changing Global Geography of Low-Technology, Labor-Intensive Industry: Clothing, Footwear, and Furniture," World Development, Elsevier, vol. 34(9), pages 1517-1536, September.
    11. Nichter, Simeon & Goldmark, Lara, 2009. "Small Firm Growth in Developing Countries," World Development, Elsevier, vol. 37(9), pages 1453-1464, September.
    12. Kiss, Andreea N. & Danis, Wade M. & Cavusgil, S. Tamer, 2012. "International entrepreneurship research in emerging economies: A critical review and research agenda," Journal of Business Venturing, Elsevier, vol. 27(2), pages 266-290.

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