HOW INDONESIAN SME GARMENT MANUFACTURERS SURVIVE?

Agus Gunawan (), Mohamed A. Wahdan (), H. Jaap van Den Herik (), Asdi Athuri Aulia () and Catharina Tan Lian Soei ()
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Agus Gunawan: TiCC, Tilburg University, The Netherlands
Mohamed A. Wahdan: Faculty of Commerce, Menoufia University, Menoufia, Egypt
H. Jaap van Den Herik: TiCC, Tilburg University, The Netherlands
Asdi Athuri Aulia: Faculty of Economics, Parahyangan Catholic University (UNPAR), Bandung, Indonesia
Catharina Tan Lian Soei: Faculty of Economics, Parahyangan Catholic University (UNPAR), Bandung, Indonesia

JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, 2011

Abstract: In this paper we analyse the Information Technology (IT) support of the Indonesian SME Garment Manufacturers (ISGMs). We address three research questions: (1) to what extent should the ISGM managers be supported by information technology? (2) how do Indonesian financial experts analyse the performance of the ISGMs? and (3) how can a hybrid knowledge-intensive system (KIS) support the managers? To answer these questions we followed a research methodology that consists of three stages, viz. literature review, fieldwork (surveys and case studies), and analysis of the results. The findings of the study indicate that most of the ISGM do not follow accounting standards while monitoring and evaluating the financial statements. This issue is particularly relevant since most ISGMs want to communicate to external parties such as a bank and a supplier that they are in good health and have fair prospects. The findings of the study indicate that the ISGM managers need the support of financial experts in analysing their financial statements for monitoring and evaluating purposes. However, because of their unique characteristics, the ISGM owners struggle with the question how to analyse and interpret the performance of an ISGM. In the paper we consider the use of a hybrid KIS that consists of an Accounting Information System (AIS) and a Decision Support System (DSS). We conjecture that in the long run ISGMs will follow the accounting standards and harmonize the provision of accounting information in financial statements. Using a hybrid KIS, ISGM managers will be able to learn how to evaluate and monitor their companies’ performances, especially in using financial analysis methods and in obtaining the insight into their own companies.

Keywords: financial analysis; hybrid knowledge-intensive system; accounting information system; decision support system; Indonesian SMEs garment manufacturers (search for similar items in EconPapers)
JEL-codes: D83 (search for similar items in EconPapers)
Date: 2011
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http://tbs.ubbcluj.ro/RePEc/bbn/journl/Negotia_4_2011.pdf Revised version, 2011 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:bbn:journl:2011_4_8_gunawan

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