Innovation Roadblocks: Micro, Small, and Medium Enterprises in Indonesian Batik Design Collaborations

Dita Andansari, Khairul Hisyam Kamarudin, Basyarah Hamat, Ellya Zulaikha, Andri Kurniawan and Zulfikar Bagus Pambuko
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Dita Andansari: Doctoral Candidate in Faculty of Artificial Intelligence, Universiti Teknologi Malaysia, Malaysia, Lecturer in the Department of Design, Polytechnic State of Samarinda, Indonesia.
Khairul Hisyam Kamarudin: Senior Lecturer, Department of Urban and Regional Planning, Faculty of Built Environment and Surveying, Universiti Teknologi Malaysia, 81310 Skudai, Johor, Malaysia.
Basyarah Hamat: Senior Lecturer, Faculty of Artificial Intelligence, Universiti Teknologi Malaysia, Malaysia.
Ellya Zulaikha: Associate Professor, Industrial Design Department, Faculty of Creative Design and Digital Business, Institut Teknologi Sepuluh Nopember, Surabaya, Indonesia.
Andri Kurniawan: Lecturer in the Department of Chemical Engineering, Polytechnic State of Samarinda, Indonesia.
Zulfikar Bagus Pambuko: Lecturer in the Faculty of Islamic Studies Magister, Universitas Muhammadiyah Magelang, Magelang, Indonesia. National University of Science and Technology, Department of Management

International Journal of Research and Innovation in Social Science, 2024, vol. 8, issue 10, 2620-2632

Abstract: The handicraft industry in Indonesia is one of the three subsectors that contribute significantly to the country’s GDP. Among other creative industry subsectors, handicrafts (particularly the Batik industry in this case) have the highest labor force multiplier. Despite MSMEs contributing 60% to the national GDP, the productivity of micro enterprises is still much lower than that of small and medium enterprises. This issue of low micro-scale productivity may be attributed to the lack of skills and human resource development, as well as ineffective management of government assistance for MSMEs. The batik craft industry, which has received recognition from UNESCO, is predominantly composed of micro-scale enterprises. Therefore, it is crucial to identify the factors that hinder the development of designs among micro-scale batik MSMEs. The purpose of this study is to identify the factors that hinder collaboration in the development of micro-scale batik MSME designs. The study uses an interview method with snowball sampling techniques, focusing on East Java, the Special Region (Daerah Istimewa, DI) of Yogyakarta, and East Kalimantan Provinces in Indonesia. The results reveal several factors that hinder design innovation in micro-scale batik MSMEs in these regions. The most influential factors are strategic, structural, human resources, market-related, government-related, and community-related issues. Internal factors include limited capital, minimal design knowledge, education, and work experience, while external factors include insufficient government training facilities, a lack of understanding of consumer preferences, and competition with other batik artists due to similarities in motif designs.

Date: 2024
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