Toward a taxonomy of micro and small manufacturing enterprises
Article Sidebar
Main Article Content
Abstract
The business sustainability of micro and small manufacturing enterprises (M-MSEs) are substantial to drive productivity and employment rate in many developing countries. However, due to various limitations, these enterprises are struggling to develop themselves into larger enterprises. For this reason, the government of Indonesia is enthused to provide technical and managerial supports for these M-MSEs. This study aims to provide an objective taxonomy of Indonesian M-MSEs as a guidance for the authorities to deliver the appropriate supports. The taxonomy was developed based on the survey to 735 M-MSEs in the Yogyakarta area. By using cluster analysis, we found that the M-MSEs can be classified into four distinct groups. Each group has its development strategies, ranging from adopting lean philosophy to instituting relationship marketing. This taxonomy provides useful directions for the authorities to support the development of M-MSEs in Yogyakarta and also serves as part of a broader effort to construct M-MSEs taxonomy in Indonesia.
Downloads
Article Details
This work is licensed under a Creative Commons Attribution 4.0 International License.
Copyright
Open Access authors retain the copyrights of their papers, and all open access articles are distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution and reproduction in any medium, provided that the original work is properly cited.
The use of general descriptive names, trade names, trademarks, and so forth in this publication, even if not specifically identified, does not imply that these names are not protected by the relevant laws and regulations.
While the advice and information in this journal are believed to be true and accurate on the date of its going to press, neither the authors, the editors, nor the publisher can accept any legal responsibility for any errors or omissions that may be made. The publisher makes no warranty, express or implied, with respect to the material contained herein.
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
2. BPS. Profil Industri Mikro dan Kecil. 2017.
3. T. Tambunan, Promoting small and medium enterprises with a clustering approach: A policy experience from Indonesia, J. Small Bus. Manag. 43 (2005) 138–154.
4. P. T. Ward and R. Duray, Manufacturing strategy in context: Environment, competitive strategy and manufacturing strategy, J. Oper. Manag. 18 (2000) 123–138.
5. BPS, Produk domestik regional bruto per kapita atas dasar harga berlaku menurut provinsi. 2018.
6. G. G. Dess and P. S. Davis, Porter’s (1980) generic strategies as determinants of strategic group membership and organizational performance, Acad. Manag. 27 (1984) 467–488.
7. S. Birley and P. Westhead, A taxonomy of business start-up reasons and their impact on firm growth and size, J. Bus. Ventur. 9 (1994) 7–31.
8. J. G. Miller and A. V. Roth, A taxonomy of manufacturing strategies, Manag. Scie. 40 (1994) 285–304.
9. B. S. Wibowo, A taxonomy of strategies for industry 4.0 implementation in indonesia, J. Ilmiah Bid. Tek. ANGKASA. 11 (2019) 1–8.
10. D. C. Mead and C. Liedholm, The dynamics of micro and small enterprises in developing countries, World Dev. 26 (1998) 61–74.
11. C. C. Sum, L. S. J. Kow, and C. S. Chen, A taxonomy of operations strategies of high performing small and medium enterprises in Singapore, Int. J. Oper. Prod. Manag. 24 (2004) 321–345.
12. G. P. McMahon, An empirical deriving development for manufacturing smes taxonomy australia’s using data from business longitudinal survey, Small Bus. Econ. 17 (2001) 197–212.
13. J. Andersén, A resource-based taxonomy of manufacturing MSMEs, Int. J. Entrepren. Behav. Res. 18 (2012) 98–122.
14. C. Hironaka, M. A. Zariyawati, and F. Diana-Rose, A comparative study on development of small and medium enterprises (SMEs) in Japan and Malaysia, Saudi J. Bus. Manag. Studies 2 (2017) 357–374.
15. E. López-Ortega, D. Canales-Sanchez, T. Bautista-Godinez, and S. Macias-Herrera, Classification of micro, small and medium enterprises (M-SME) based on their available levels of knowledge, Technovation 47 (2015) 59–69.
16. J. Obi, et al., Contribution of small and medium enterprises to economic development: Evidence from a transiting economy, Data Brief 18 (2018) 835–839.
17. The World Bank. Indonesia Economi Quarterly: Towards inclusive growth. 2018.
18. P. J. Rousseeuw, Silhouettes: A graphical aid to the interpretation and validation of cluster analysis, J. Comput. Appl. Math. 20 (1987) 53–65.
19. Y. C. Wong and K. Y. Wong., A lean manufacturing framework for the malaysian electrical and electronics industry, Proc. 3rd Int. Conf. Inf. Financ. Eng., 2011, pp. 30–34.
20. S. Nichter and L. Goldmark, Small firm growth in developing countries, World Dev. 37 (2009) 1453–1464.
21. D. Shani and S. Chalasani, Exploiting niches using relationship marketin.. J. Consum. Mark. 9 (1992) 33–42.
22. E. Gummesson, Relationship marketing in the new economy, J. Relat. Mark. 1 (2002) 37–57.