The Innovation of Micro, Small, and Medium Enterprises: A Case Study of Laweyan Batik Village – Indonesia

Oscar Nugroho and Roos K. Andadari
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Oscar Nugroho: Alumnus of the Faculty of Economics and Business, Satya Wacana Christian University - Salatiga, Indonesia.
Roos K. Andadari: Lecturer of the Faculty of Economics and Business, Satya Wacana Christian University - Salatiga, Indonesia.

Indian Journal of Commerce and Management Studies, 2014, vol. 5, issue 2, 37-46

Abstract: The main disadvantage of micro, small, and medium enterprises (MSMEs) is limited resources. Facing competition from large companies, MSMEs must have a new resource to survive, which is innovation. Innovation has a good impact on MSMEs to enhance stability and increase profitability. This research is conducted to study innovation in small enterprises, especially small batik firms in Batik Laweyan Village. This paper answers two questions: (1) What kinds of innovation have been done by small batik enterprises in Laweyan Batik Village? (2) How is the performance of small batik enterprises in Laweyan Batik Village that have done innovations? The research concludes that: (1) The innovation in small batik enterprises in Laweyan Batik Village is focused on products, and the type of innovation is incremental. Moreover, the source of innovation comes from theskills of its owners/managers and employees. (2) The impact is an increase in quality and the obstacle is how to put innovation into practice. By doing innovation, small firms’ revenue and profit have increased.

Keywords: innovation; MSMEs; industrial cluster. (search for similar items in EconPapers)
Date: 2014
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