How did the crisis affect small and medium-sized enterprises? -- from a field study of the metal-working industry in Java

Yuri Sato

The Developing Economies, 2000, vol. 38, issue 4, 572-595

Abstract: This paper focuses on the impact of Indonesia's economic crisis on small and medium-sized enterprises (SMEs). It shows how the performance of SMEs during the crisis varied widely even in the same industrial subsector, and found that the factors most affecting performance have been market orientation and the linkages that the SMEs have formed with the buyers of their products. Well-performing SMEs were found to have utilized putting-out linkages with wholesalers which enabled them to switch to products having better markets. On the other hand, the SMEs which had subcontracting linkages with assemblers or contracting linkages with user-factories (with the exception of SMEs having export-oriented linkages) suffered badly in the crisis because of specificity of products with little room for switching. The paper also found that exposure to debt due to borrowing for investment has been another factor affecting performance, but that enterprise size has had no linear correlation with performance.

Keywords: Indonesia; Small and medium-scale enterprises; Metal industry; Economic crisis; インドネシア; 中小企業; 金属工業; 経済危機 (search for similar items in EconPapers)
JEL-codes: L61 (search for similar items in EconPapers)
Date: 2000
References: View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
https://ir.ide.go.jp/?action=repository_action_com ... bute_id=22&file_no=1 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jet:deveco:v:38:y:2000:i:4:p:572-595

Ordering information: This journal article can be ordered from
http://www.wiley.com/bw/subs.asp?ref=0012-1533

Access Statistics for this article

More articles in The Developing Economies from Institute of Developing Economies, Japan External Trade Organization(JETRO) Contact information at EDIRC.
Bibliographic data for series maintained by Michitaka Imamitsu ().