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Effect of Supply Chain Innovation and Business Strategy Formulation in SME Clusters

International Journal of Supply Chain Management

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Field Value
 
Title Effect of Supply Chain Innovation and Business Strategy Formulation in SME Clusters
 
Creator Farid Wajdi, Muhammad
Setyawan, Anton Agus
Syamsudin, Syamsudin
Susila, Ihwan
Isa, Muzakar
 
Description Abstract— The purpose of this study is to analyze the effects of supply chain innovation and business strategy formulation to business performance. This study analyzes supply chain innovation and how SME compile their business strategy in industrial clusters.  Design of this study is quantitative. We develop a multivariate estimation model to analyze the relationship among constructs. We conduct surveys in 3 different SME clusters, they are shoes and sandals cluster in Mojokerto East Java, furniture cluster in Sukoharjo, Central Java and mushroom cluster in Yogyakarta. This survey includes 206 SME from three different clusters. Our result shows that supply chain innovation and business strategy formulation has positive effects on SME business performance. However, the result shows different magnitude on each of SME clusters. SME should improve their innovation in order to increase their business performance. Source of innovation is human capital, while empirically this is one of SME problems in Indonesia. Lack of qualified human capital encourages SME to conduct training with assistance from government and business partners. This study found that in Indonesia’s SME cluster there are difference business strategies. SME clusters uses two different strategies in their business policies, they are innovation and product development based on business partner strategies.
 
Publisher International Journal of Supply Chain Management
 
Contributor
 
Date 2020-06-29
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://ojs.excelingtech.co.uk/index.php/IJSCM/article/view/5057
 
Source International Journal of Supply Chain Management; Vol 9, No 3 (2020): International Journal of Supply Chain Management (IJSCM); 367 - 376
2050-7399
2051-3771
 
Language eng
 
Relation http://ojs.excelingtech.co.uk/index.php/IJSCM/article/view/5057/2553
 
Rights Copyright (c) 2020 International Journal of Supply Chain Management