SMES COMPETITIVENESS IN AN INTEGRATED ECONOMY: A PRELIMINARY STUDY FROM INDONESIA

ASEAN Economic Community (AEC) offers both opportunities and challenges to Indonesian Small Medium Enterprises (SMEs). Highly competitive SMEs are likely to exploit opportunities from AEC by expanding their markets and securing raw materials at lower costs. On the contrary, the increasingly intense...

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Main Authors: Eko Suseno Hr Matrutty, Rosaly Franksisca, Theresia Woro Damayanti, Supramono
Format: Article
Language:English
Published: University of Oradea Publishing House 2018-03-01
Series:Oradea Journal of Business and Economics
Subjects:
Online Access:http://ojbe.steconomiceuoradea.ro/wp-content/uploads/2018/03/OJBE_31_p1_7-16.pdf
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author Eko Suseno Hr Matrutty
Rosaly Franksisca
Theresia Woro Damayanti
Supramono
author_facet Eko Suseno Hr Matrutty
Rosaly Franksisca
Theresia Woro Damayanti
Supramono
author_sort Eko Suseno Hr Matrutty
collection DOAJ
description ASEAN Economic Community (AEC) offers both opportunities and challenges to Indonesian Small Medium Enterprises (SMEs). Highly competitive SMEs are likely to exploit opportunities from AEC by expanding their markets and securing raw materials at lower costs. On the contrary, the increasingly intense competition is likely to marginalize less competitive SMEs in their own domestic market. This study aims to analyze the SMEs competitiveness in anticipating AEC. Using 64 SMEs that already export their products or have potentials to export as the sample; this research shows that Indonesian SMEs exhibit a high competitiveness level from the perspective of the production factor, the availability of related and supporting industries factor (especially in relation to the availability of raw and supporting materials), and the demand factor. However, SME owners acknowledge that AEC intensify competition and the government has not provided adequate facilities to improve the SME competitiveness.
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spelling doaj.art-b857510b2e79403485261e389542e1cf2022-12-22T00:24:15ZengUniversity of Oradea Publishing HouseOradea Journal of Business and Economics2501-35992501-35992018-03-0131716SMES COMPETITIVENESS IN AN INTEGRATED ECONOMY: A PRELIMINARY STUDY FROM INDONESIAEko Suseno Hr Matrutty0Rosaly Franksisca1Theresia Woro Damayanti2Supramono3Department of Management, Faculty of Economics and Business, Universitas Kristen Satya Wacana, Salatiga, IndonesiaDepartment of Management, Faculty of Economics and Business, Universitas Kristen Satya Wacana, Salatiga, Indonesia2Department of Accounting, Faculty of Economics and Business, Universitas Kristen Satya Wacana, Salatiga, IndonesiaDepartment of Management, Faculty of Economics and Business, Universitas Kristen Satya Wacana, Salatiga, IndonesiaASEAN Economic Community (AEC) offers both opportunities and challenges to Indonesian Small Medium Enterprises (SMEs). Highly competitive SMEs are likely to exploit opportunities from AEC by expanding their markets and securing raw materials at lower costs. On the contrary, the increasingly intense competition is likely to marginalize less competitive SMEs in their own domestic market. This study aims to analyze the SMEs competitiveness in anticipating AEC. Using 64 SMEs that already export their products or have potentials to export as the sample; this research shows that Indonesian SMEs exhibit a high competitiveness level from the perspective of the production factor, the availability of related and supporting industries factor (especially in relation to the availability of raw and supporting materials), and the demand factor. However, SME owners acknowledge that AEC intensify competition and the government has not provided adequate facilities to improve the SME competitiveness.http://ojbe.steconomiceuoradea.ro/wp-content/uploads/2018/03/OJBE_31_p1_7-16.pdfCompetitivenessDiamond ModelSMEAEC
spellingShingle Eko Suseno Hr Matrutty
Rosaly Franksisca
Theresia Woro Damayanti
Supramono
SMES COMPETITIVENESS IN AN INTEGRATED ECONOMY: A PRELIMINARY STUDY FROM INDONESIA
Oradea Journal of Business and Economics
Competitiveness
Diamond Model
SME
AEC
title SMES COMPETITIVENESS IN AN INTEGRATED ECONOMY: A PRELIMINARY STUDY FROM INDONESIA
title_full SMES COMPETITIVENESS IN AN INTEGRATED ECONOMY: A PRELIMINARY STUDY FROM INDONESIA
title_fullStr SMES COMPETITIVENESS IN AN INTEGRATED ECONOMY: A PRELIMINARY STUDY FROM INDONESIA
title_full_unstemmed SMES COMPETITIVENESS IN AN INTEGRATED ECONOMY: A PRELIMINARY STUDY FROM INDONESIA
title_short SMES COMPETITIVENESS IN AN INTEGRATED ECONOMY: A PRELIMINARY STUDY FROM INDONESIA
title_sort smes competitiveness in an integrated economy a preliminary study from indonesia
topic Competitiveness
Diamond Model
SME
AEC
url http://ojbe.steconomiceuoradea.ro/wp-content/uploads/2018/03/OJBE_31_p1_7-16.pdf
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AT theresiaworodamayanti smescompetitivenessinanintegratedeconomyapreliminarystudyfromindonesia
AT supramono smescompetitivenessinanintegratedeconomyapreliminarystudyfromindonesia