THE IMPACTS OF EXTERNAL COMPETITIVENESS FACTORS IN THE HANDICRAFTS INDUSTRY

Ratna Roostika (), Tri Wahyuningsih and Sigit Haryono
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Ratna Roostika: Department of Management, UPN “Veteran” Yogyakarta, Indonesia
Tri Wahyuningsih: Department of Management, UPN “Veteran” Yogyakarta, Indonesia
Sigit Haryono: Department of Business Administration, UPN “Veteran” Yogyakarta, Indonesia

Polish Journal of Management Studies, 2015, vol. 12, issue 1, 166-176

Abstract: Handicrafts industry in Bantul has been successfully contributing to 80% of crafts export in the Yogyakarta Province. As a small and medium industry based, handicrafts industry faces many challenges and limitations. To be able to better compete, their competitiveness need to be assessed so that proper strategy can be taken. This paper analyses handicraft SMEs in Bantul Regency, Indonesia. Porter Diamond model of competitive advantage is used to assess the competitive factors of handicrafts industry. Data were collected from 98 SMEs and analyzed using multiple regression. Among four Porters’ competitive factors, only related-supporting industry that has no significant contribution to clusters competitiveness. Factor conditions, demand conditions and strategy-structure-rivalry have positive impacts on clusters competitiveness. The results are expected to assist the handicrafts SMEs to better understand the nature of competition as well as for the policy makers to emphasize the importance of external competitiveness factors.

Keywords: SMEs; handicrafts industry; Porter Diamond model competitiveness (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (3)

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