THE INFLUENCE OF EXTERNAL AND INTERNAL ENVIRONMENT ON THE COMPETITIVE STRATEGY AND THE PARTNERSHIP STRATEGY AND ITS IMPACT ON THE COMPETITIVE ADVANTAGE AND ITS IMPLICATION ON THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN WEST SUMATRA AFRIAPOLLO SYAFARUDIN
[email protected] Doctare Program in Management Faculty of Economics and Business University of Padjadjaran ABSTRACT The performance of small and medium industry can be highly achieved if SMEs have competitive advantage. SMEs have to implement competitive strategy and partnership strategy optimally. Entrepreneurs of SMEs need to understand the nature of external environment. A study of general trends and the dynamics of competition within industry can highlight opportunities that match the capabilities of entrepreneur. It is then important to evaluate the internal capabilities of enterprise so that these can be matched with market needs and other external opportunities. In other words, analysis of external environment helps the entrepreneur to determine what business potential exists, whereas internal analysis reveals what the venture is able to do. The objective of research are to analyze the effect external and internal environment on the competitive strategy and the partnership strategy and its impact on the competitive advantage and its implication on the performance of small and medium industry in west sumatra. The research methodology used in this study is descriptive and explanatory survey. Total respondents are 140 entrepreneurs of SMEs in West Sumatra. The sample technique uses proporsional cluster random sampling, while data analysis technique used is PLS. The research shows that (1) external and internal environments have significantly effect to competitive strategy simultaneously, But the influence of internal environments on competitive strategy is higher than the influence of external environments on competitive strategy (2) external and internal environments have significantly effect to partnership strategy simultaneously, But the influence of internal environments on partnership strategy is higher than the influence of external environments on partnership strategy (3) external and internal environment as well as competitive strategy, and partnership strategy have significantly effect to competitive advantage simultaneously (4) external and internal environment as well as competitive strategy, partnership strategy and competitive advantage have significantly effect to performance of small and Medium industry simultaneously. Keywords : external and internal environment, competitive strategy, partnership strategy, competitive advantage, performance of small and medium industry.
I. 1.1
Introduction
Background of the research Economy of the 21st century, which is marked by economic globalization, can be defined as a process in which many countries involve in economic world. The more global of a country in economic world can be seen from the increase of international trade, i.e. export and import. This will be reflected through the rise of export share in the global market and the growth of the ratio of import to GDP. The more active a country involved in the production process which involves many countries, the greater flow of foreign investment come into this country or the greater amount of investment from this country to other countries. ASEAN countries, includes Indonesia, have agreed to apply ASEAN Free Trade Area (AFTA), in broader area APEC is applied in 2014, while WTA was fully applied in 2010. Apart from any excuse, it is impossible for all countries to escape from all conditions and consequences that accompany the global climate. For industrial society to bring great changes, those are: (1) globalization of production, free entry to all products, where company’s production spread in various countries which aim at lowering cost of production. It is done either because of a low labor cost, a cheap admission charge, adequate infrastructure or because business climate and conducive political. (2) Globalization of labor, the entry of foreign expert freely. Through globalization, human movement will be easier and free. (3) Globalization of trading: foreign private company can open networking freely. It is manifested in form of the decreasing and uniformity of rates and disbandment of non-rate barriers. (4) Globalization of financing, investment is not limited by nation boundaries, global companies have access to get loan or to invest with business partners from foreign countries. The problem of competitiveness in an increasingly open global market is a key issue and tough challenge for industrial, includes small enterprise (SEs). Without having highly competitive and excellent ability, it is undoubtedly that local products cannot penetrate international market. Even, the influx of imported products can threat position of domestic market. Therefore, the effort to increase competitiveness and establish competitive advantage for SMEs’ products which cannot be delayed by various circles, not only by SMEs’ themselves but also by bureaucratic apparatus, various organizations, and member of society which are work environment of SMEs. Globalization which is driven by free trade era and liberalization of international trading which increase international competitiveness in domestic market will cause bad impact on inefficient SMEs and low competitive SMEs, whilst, it can benefit efficient and high competitive SMEs. SMEs in both developed and developing countries play essential role in national economic. In developed and new industrial countries, SMEs make contribution toward the increase of export and as sub-contacts which provide various inputs for large scale industrial as well as innovation sources. Different from developed countries, the important of SMEs in developing countries are often connected with government commission to solve economic or social problems, i.e. reduction of unemployment, eradication of poverty, and uniformity of income. Besides, the existence of SMEs in developing countries such as in
Indonesia is to eliminate the imbalance which are caused by uneven development process, mainly it is because of the bias of urban development which cause rural areas become left behind in comparison with urban area. Urata (2000), who has observed the development of SMEs in Indonesia, states that SMEs play important role in Indonesia. Some of their roles are: (1) SMEs are major player in economic activities in Indonesia; (2) they are providers of employment opportunities; (3) they are important player in the development of local economic and the development of society; (4) they are creator of market and innovations through the flexibilities and sensibilities as well as dynamic connection among companies’ activities; (5) they make contribution to the increase of non-oil export; meanwhile, Tambunan (2009) mentions that SMEs are also able to reduce the inequality income, especially, in developing countries. In new industrial countries such as Korea and Japan, contribution of SMEs is more associated with the increase of export, sub-contractors and innovation agents. In Korea, the fast development of SMEs is not merely making contribution to the employment. The contribution of SMEs in developed countries also gives high value added. Manpower and value added make contribution an average of 60% and 40% per year in its industrial structure (Nugent & Yhee, 2002). Similarly, the number of SMEs in Japan have reached 4,69 millions units in comparison with the number of large companies about 13 thousands units (0.3 %), all of which can absorb labors about 29,96 millions people (70,2%) and resulted export value by 137 billion yen (51,1 %) (Ammary, 2011). In order that region economic development which is aimed at increasing social welfare, so the exploration of potential to the region specialization need to get attention. In line with decentralization era and region economic development so the strategic role and the positions of SMEs are relevance to the success of the implementation of decentralization policies. By the implementation of decentralization, SMEs in that area are also indispensable to create competitive climate in the areas. Decentralization gives implication that the regions plan self development in its area with support of local sources. It makes the position of SMEs become important to manifest the development of region economic and human empowering. The relevance of the development of SMEs in economic development is more relevant with the aim to overcome poverty, imbalance and unemployment. Even though, the role of SMEs is vital for region economic development but in reality imbalance of the development of SMEs in some region such as Java and outside Java frequently occur. In some regional, the existence of SMEs is dominant, especially, in Java Island, while in other region the number of SMEs is left behind. Based on Ratih’s research (2004) that more that 60 % concentration of SMEs is in Java Island, while in Sumatra which has abundant natural resource are only 10% to 14% from the total SMEs. Furthermore, the contribution of SMEs on the employment from each province is different. Provinces which consistently has a role of employment above national role is west Sumatra, DKI Jakarta, west Java, central java, DI Yogyakarta, east java, bali, west Nusa tenggara, central Kalimantan, south Kalimantan, north Sulawesi and central Sulawesi.
According to Ratih’s research (2004), revealed that provinces in Java Island make large contribution to the employment on SMEs; while, in Sumatra Island only in west Sumatra which play role in the employment. In order to the development of industries in west Sumatra, west Sumatra government policy is directed to two priorities, those are: 1) The development of core-region competency-basis industries; is an effort to improve local self-reliance through the utilization of resources (nature, human and culture) which are efficiently and optimally owned in order to develop competitiveness and trade area. 2) Commodity-Based Community Economy Development District / City; is an effort to increase local self-reliance through the utilization of resources (natural, human, cultural) which are efficiently and optimally owned in order to improve the social welfare. The industrial priority that needs to be concerned and developed is the commodity of leading industries which eventually improve the region economic in West Sumatra. The type of industrial commodities that are exist in West Sumatra has unique or has local culture characteristic and can have high competitiveness is embroidery handicraft, embroidery and weaving. Embroidery handicraft industries, embroidery and weaving can be said as creative industry for west Sumatra in which creative industries are potential sector to be developed in order to improvement of region economic. However, the contribution of creative industries on the PDRB is less than other type of industries. SMEs which run on embroidery handicraft, embroidery and weaving business in West Sumatra today is still weak in export level in comparison with other leading industrial commodities. Thus, West Sumatra’s leading industries has entered export market such as cocoa processing industry, gambir industry, atsiri oil industry alsitan industry and cement industry. During this time the seller of SMES embroidery handicraft, embroidery and weaving sell their products to foreign markets through intermediaries, even, foreign tourists directly come to buy the products in the large quantities. There are several phenomena that appear based on observations in the field. The first phenomenon, based on the pre-survey (preliminary study), interviews and direct observation with the owner / manager of industrial embroidery, embroidery and weaving, said that in recent years the level of product sales has been decreased, which in a few years ago there was an increase in sales each year. This can be seen from the decrease of tourists both domestic and foreign in the purchase of SME products. The second phenomenon, the intense of competition among the players in the embroidery, and weaving industry in terms of product’s price, quality / quality stitching, and stitching or weaving wages to the workers. This leads to a decrease of profits, and a decrease in the level of sales. The third phenomenon, based on observations in the field that, SMES embroidery and weaving in West Sumatra cannot be said to have an adequate competitive advantage. It is seen from the costs incurred by the direct buyer to obtain the SMES product. These costs include the cost of labor and time, the location of the SMEs which is very far from the buyers, which is mostly located in rural areas; expensive price of product, which can be reached only by the upper middle class society.
The fourth phenomenon, based on observations in the field that the use of strategies, both in competitive strategy and partnerships strategic that have not optimally performed. Most of SMEs embroidery, stitching and weaving employ the competitive strategy of differentiation, as it is seen from the unique design of the product. While the partnership strategy has been carried out by SMEs embroidery, and weaving with universities, large businesses, government agencies, private institutions are still not optimal. It is seen from the a partnership form that has happened is merely coaching management, promotion, design or motif development, internet marketing, and capital, but collaboration / partnership that exists is unsustainable, even it is uneven for entire SMEs in West Sumatra. On the other hand, the assistance which is provided by the large enterprises to SMEs, are still not able to answer or solve the problem of SME itself, in the sense of fit between the assistance provided with everything that is expected by the SME entrepreneurs. The fifth phenomenon, based on observations and interviews with some of the parties on the field, that SMEs handicraft embroidery, embroidery, and weaving experience some obstacles and challenges from both internal and external sides, those are: Strategic mindset to invite entrepreneurs / managers of companies, especially SMEs embroidery, stitching and weaving in West Sumatra in not just to look at the company or its business are independent and separate from the environment for the growth and sustainability of the business depends on the entrepreneur's ability to recognize the environment faced and the formulation of a series of strategic actions to be able to take advantage of available opportunities and avoid upcoming threats. External environment is as a source and a tendency to change so that it can create opportunities and threats for the company itself (Gomez, et al .., 2007). The external environment consists of macro and micro environment in which both of them have a big impact on the performance of the company. Micro environment includes actors that are directly connected and directly impact to companies such as suppliers, customers, agents, brokers, government agencies, competitors and others. While the macro environment associated with factors indicative of changes in the sociocultural, political, economic, demographic and technological. Based on the results of the research which was conducted by Munizu (2010), it reveals that the performance of the small business sector is influenced by two main factors, those are, the factors that exist in the external and internal environmental factors. Internal factors include aspects of HR (owners, managers, and employees), financial aspects, technical aspects of the production, and marketing aspects; while, external factors consist of government policy, socio-cultural and economic aspects, and the role of government institutions, universities, private and NGO (Haris, 2004). While, Based on the results of the research which was conducted by Munizu (2010), it reveales that the performance of the small business sector is influenced by two main factors, those are, the factors that exist in the eksternal and internal environmental factors. Internal factors include aspects of HR (owners, managers, and employees), financial aspects, technical aspects of the production, and marketing aspects; while, external factors consist of government policy, socio-cultural and economic aspects, and the role of government institutions, universities, private and NGO (Haris, 2004). While the research results of crijins and Ooghi (2000) reveals that each stage of the company's growth is the result of two environments in which the company conducts its business, those are internal and external environments. Besides, the positive performance of the company is supported by a well functioning coordination between marketing and non-marketing activities (Ledwith et.al, 2008).
Success in improving the performance depends on the ability to manage both of these factors through analysis of environmental factors as well as the formation and implementation of business strategy. This success will be achieved if the existence of conformity between the internal environment and the external environment through the application of the proper way. From the analysis of both the environment can be used as a basis for planning and determining the company's strategy, so that companies can put themselves in a favorable position. This position will make the company able to compete and develop their business. Michael Porter's competitive strategy two "generic" to outperform other companies in a particular industry: low cost and differentiation. Low cost is the company's ability to design, create and market a comparable product in a way that is more efficient than its competitors. Differentiation, on the other hand is the ability to provide unique and superior value to the buyer in terms of quality, features, or aftersales service. In the opinion of Longenecker, Moore and Petty (2003: 33), state that in order to achieve leading performance, companies should make the process to analyze the external and internal environment and determine appropriate competitive strategy. Meanwhile, according to Tamba (2004) the implementation of competitive strategy can improve the company's competitive advantage. A company is said to have a competitive advantage (competitive advantage) if the company is able to outperform its competitors in order to achieve a return above the average that is obtained by the competitors. Various aspects of competitive advantage are an increase in quality, price competition, the use of an attractive product packaging design and satisfactory sales service. Market conditions greatly affect the competitive advantage, such as excellence based on better service delivery to customers requires attention to the external environment, it includes the monitoring to customer trends, economic issues, and government policies. In addition, the competitive advantage provides high performance of enterprise (Assery, 2010). 1.2. Literature Review Development of small and medium industries (SMEs) in Indonesia, including in the region in West Sumatra, is one of the priorities in the development of national economy and the improvement of the regional economy. This is not just because the business is the backbone of a democratic economic system which is not only intended to reduce the gap between business agents, or poverty alleviation and employment. Based on the results of empirical research conducted by Munizu (2010.33), it reveals that the performance of micro and small business sector is influenced by two main factors i.es the external environment and the internal environment. The internal environment includes aspects of HR (owner, manager and employees); financial aspects, technical aspects of production; and marketing aspects. Meanwhile, the external environment consists of government policy, socio-cultural and economic aspects, and the role of institutions such as government, universities, private sector and NGOs. Based on the research conducted by Crijins dan Ooghi (2000), it reveals thatt each stage of the company's growth is the result of two environments in which the company conducts its business, namely the internal environment and external environments. While the research conducted by Wisardja (2000) shows that industries environmental factors whose elements are customers, suppliers, competitors, and technology have a significant impact on business success woodcarving industry in Gianyar regency, Bali province; and influence the customer most dominant element of the success of the timber business are connected to environmental aspects. While studies conducted by Maupa (2004) shows: (1) the characteristics of the individual manager / owner, the characteristics of the company, the external business environment, and the
impact of economic and social policies have a direct influence, a positive and significant impact on the business strategy and business growth; (2) the characteristics of the company, and the impact of social and economic policies have a direct negative effect on the business strategy; and (3) the business strategy has a direct influence, a positive and significant impact on the growth of the company's growth. Studies conducted by Yuniwati (2003), quoted by Sri Budi Cantika Yuli (2006), concludes that the external business environment directly affects the performance of the company amounted to 0.372%, and strategic planning affect the performance of the company amounted to 84.5%, while it was direct external business environment through strategic planning affect the company's performance by 47.1%. The implications of this study is strategic planning can provide a greater influence on performance. Besides the environmental effect on the performance of the company, the external environment and internal environment also has an influence on competitive advantage. Researchers in the field of strategic management has to understand that competitive advantage (competitive advantage) is highly dependent on the suitability of the company (match) between the company's internal capabilities and external conditions change (Anatan & ellitan, 2009: 52). Each company must define and execute business strategies to best suit the company's internal capabilities in the face of competition. Some alternative business strategies that can be developed by a company is a competitive strategy and strategic partnerships. competitive strategy (competitive strategy) which is a research variable here refers to the opinion of Thomson, Strickland and Gamble (2010), which includes the cost leadership strategy (cost leadership), differentiation strategy (differentiation), the best strategy costing, cost focus strategy (cost focus ), and focused differentiation strategy (differentiation focus). While the strategy of partnership (partnership strategy), which is also a research variable refers to Hao Ma (2004), namely: Setting foothold, pooling resources and sharing risks, sharing complementary resources and skills, learning from partners, alliances bulding, weighing options in multiple alliances. Competition is increasingly competitive requires companies to have a competitive advantage in order to win the competition and gain market and opportunity. To anticipate the company will need to develop a competitive strategy that focuses on core competencies both in terms of price, quality, flexibility, and delivery. To improve performance, it can be obtained by applying one of the competitive strategies by a company, as expressed by Porter (2004), who argues that if a company can achieve and sustain overall cost advantage, then the company would be a company that is performing above average in the industry. Meanwhile, in the opinion of Longenecker, Moore and Petty (2003: 33), states that in order to achieve superior performance, the company should make the process of analyzing the external and internal environment and determine appropriate competitive strategy. According Haloman Tamba (2004), in the business activity, competitive strategy is used to improve competitiveness (Competitive advantage), while Thomson, Strickland and Gamble (2010: 162) explains that by applying one of the above competitive strategies can provide the opportunity for companies achieve sustainable competitive advantage. Under conditions of intense competition and an uncertain business environment (changed), the performance of the company is determined by the competitive strategy that is supported by the company's internal capabilities Ellitan and Anatan (2009: 17). The existence of fundamental changes in the global economy as increasingly intense competition, rapid technological development, the rising of construction cost, costs of production and marketing costs of new products, to compete in the arena, company can not bear such a large fixed cost. In its turn a business partner is needed
(partner). Strategic partnerships between organizations (both governmental and private) aims for the following reasons, to give way into the market, reduces the risk caused by changes in the environment, the ability to complement each other, and to obtain outside sources of which can be generated by a company. Partnership is important because the complexity and environmental risk in the world economy, as well as the limited ability and resources of a company. Kuncoro (2006: 169) says that the change in the external environment is the fundamental reason that affects the strategic alliance. This change reflects the inability of internal resources to achieve competitive advantage. Cravens (2009) explained that a strategic alliance can increase competitive advantage by combining the ability of the company. Besides, cooperation (collaboration) that is based on mutual trust, openness, shared risk and benefit will increase competitive advantage and produce high performance, if not do collaborations / Sheikh Assery (2010). A company is said to have a competitive advantage (competitive advantage), if the company is able to outperform its competitors in order to achieve a return above average profits from its competitors. In the era of globalization where competition is very tight business in international markets / global and domestic market / national, mastery of competitive advantage is necessary, because if not, the company will develop even it is difficult to sustain from any life. Basically competitive advantage grows out of value or benefits that can be created by the company to its customers more, of the cost to be incurred by the company to create it. This is the value or benefits than it paid for by the customer, and superior value comes from offering lower prices than competitors’ prices for equivalent benefits or offers unique benefits that exceed the price offered by Porter (2004: 3). Longenecker, Moore and Petty (2003: 30) say that the competitive advantage is when a company offers a product and a better service for consumers who becomes the target than those offered by competitors. In this study, the competitive advantage is a result of the performance that can be assessed by its customers, the competitive advantage dimensions adopted from Longenecker, Moore and Petty (2003: 31), i.e. the uniqueness of the service (unique service), price (price), quality of products available (notable product attributes), customer experience (customer experience), and ease of customer (customer convenience). Moore and Petty (2003) explains that when a company provides products or services for customers, bringing value to the customers, then the company itself has achieved competitive advantage (competitive advantage) and get benefit / profit greater than competitors. Measurement of performance required by any company whether it is profit oriented, and non-profit oriented. This is due to the measurement results will be useful as a basis for planning. In addition, companies are becoming more aware of the strengths, weaknesses, opportunities and challenges it faces, and can also see the critical factors that need immediate response. In this study, the authors measure the performance of SMEs refers to the concept of H Gin Chong (2008) and Ann Ledwith (2008), which measures performance using measurements of financial and non-financial measurements. Measurements with finance, including turnover, net profit before tax, return on investment, growth in revenue, growth in number of employees. While the non-financial measurements include referrals customers, employees’ turnover, and market share.
1.3 Research Objectives The research is aimed at following objectives: 1) Producing an assessment of the external environment, internal environment, competitive strategy, strategic partnerships, competitive advantage, and performance of SMEs handicraft embroidery, embroidery, and weaving in West Sumatra. 2) Obtaining the result of the study the influence of the external environment and the internal environment of the SME competitive strategy handicraft embroidery, embroidery, and weaving in West Sumatra. 3) Obtaining the result of the study the influence of the external environment and the internal environment of the SME partnership strategy handicraft embroidery, embroidery, and weaving in West Sumatra. 4) Obtaining results of the study the influence of external environmental influences and internal environment of the competitive advantage of SMEs handicraft embroidery, embroidery, and weaving in West Sumatra through competitive strategy and strategic partnerships. 5) Obtaining the result of the study the influence of the external environment and internal environment on the performance of SMEs handicraft embroidery, embroidery, and weaving in West Sumatra through competitive strategy, strategic partnerships, and competitive advantage. II.
METHOD
In accordance with the objectives to be achieved, the study applied descriptive and verification method then used the survey method explanations (explanatory survey method) and descriptive methods (descriptive survey method). 2.1 Sources and Determination Method of Data / Information The data in this study is a secondary data obtained from documents published both in print and web-site, BPS reports, reports of Deparindag, Office of SMEs and Cooperatives; Blog on the subject of data from HPI, HPI Magazine; National coordination meetings; as well as from the results of previous studies related. While the primary data obtained from (1) Survey of individuals against employers / managers of SMEs in the region of West Sumatra by interview using a questionnaire; (2) Survey of the individual to the customer / consumer either directly or consumer wearer who resell the products of SMEs (sellers agent) in the region of West Sumatra by interview using a questionnaire. In this study the method of sampling will be carried out with proportional cluster random sampling technique through a two-stage (two stage cluster sampling). So the number of samples in this study were 138 SMEs embroidery, stitching and weaving, in other words, this study uses the unit of analysis at least 138 SMEs from each county and municipality in West Sumatra. Furthermore, of the 138 SME customers also determined the sample size HPI embroidery, stitching and weaving, in which each sampled SMES taken five customers at random, so that the total sample of customers HPI embroidery, embroidery, and weaving for 690 customers. 2.2 Operationalization of Variables Furthermore, the operationalization of the variables and sub-variables can be explained in the table below:
Variabel & Sub Variabel [1] External environment (X1) (Julieta Ojeda – Gomez, Mike Simpson, S.C.Lenny Koh, dan Jo Padmore (2007) .
Dimention [2] 1.Demografic 2.Economic
3. Politic
4. social culture
5.technology 6. suppliers
7. consummers
8. sales agents
9. competitors
10. government institution 11. Availbility of manpower 12. Creditor
Internal environment 1. (X2) Musa Hubeis dan Mukhamad Najib, 2008
Marketing
2. Production
Indicator [3]
Scale [5]
Population size
ordinal
Income distribution
ordinal
Economic growth
ordinal
Interest rate
ordinal
Trading condition
ordinal
Tax policies Determination of minimum wage
ordinal ordinal
Price policies
ordinal
People’s belief
ordinal
Behavioural changes
ordinal
Social status
ordinal
Production technological proces
ordinal
Communication technology
ordinal
Quantity of suppliers Prices of raw material
ordinal ordinal
Quality of raw material
ordinal
Service Consumer’s geograpic area
ordinal ordinal
Consumer’s behaviour
ordinal
Purchasing potency
ordinal
Quantity of agents
ordinal
Quantity of orders
ordinal
seller locations Repayments Competitiveness Competitors’ products
ordinal ordinal ordinal ordinal
Prices of competitors’s products Services Program and assistance Availbility of infrastucture
ordinal ordinal ordinal
Availbility of quantity of manpower Location of manpower Information of skim credits Ease loan procedure
ordinal ordinal ordinal ordinal
Availibility of financial needed Market share
ordinal ordinal
Diversity of products
ordinal
Distribution of seller agent Price policies Services Company’s reputation The use of thechnology in production process
ordinal ordinal ordinal ordinal ordinal
Efficient production process Efective production process
ordinal ordinal
Avaibility of facilities and infrastructure in production process Employee’s knowledge and skills Ability to manage business Enterpreneurship Employee and owner’s ability to use technology
ordinal
4. Finance
Availibility of capital Implementation of financial report recording system Separation between company’s and family’s finance Alocation of profits as a additional capital.
ordinal ordinal ordinal ordinal
5.R&D
Frequency of developing products Availibility of new technology in production process Ability of conducting research and developing of production Customer information Raw material information Labor information Financial information Information about Competitor
ordinal ordinal ordinal
Employees’ cooperation Employees’ integrity Communication between employer and employee Strictly contraolling to every production process. Large scale production Timeless in making products Creating products with variaties of modesl and features Sustainable improvement Quality products Adjustment of quality of product with affordable prices by all customers Balance of services with cheaper price than competitors’ Model and variety products for particular consumers Products’ quality refinement for particular consumers Cost controlling to particular customers Small scale production for particular customer Partener cooperation Merging of resource Risk sharing Allocation of resources and expertise Effectively of learning
ordinal ordinal ordinal ordinal ordinal ordinal ordinal ordinal ordinal ordinal
Alliance to compete Parthership weighting with many partners Unique servise The unique of bonus and gift
ordinal ordinal ordinal ordinal
Amount of expanses (money) Amount of spending time Amount of energy used for shopping Quality of products
ordinal ordinal ordinal ordinal
3. Human Resource
6. information system
7. company culture
Competitive strategy (Y1) Thomson, Stickland and Gamble (2010: 141).
1. Stipulation of lowest cost
2. Differentiation 3. stipulation of best costs
4.
Differentition focus
5. low cost strategy focus Partnership strategy (Y2), is Hao Ma (2004)
Leading competitiveness (Z) Longenecker, Moore, and Petty (2003:31)
1. collaboration positions 2. accumulation of resource and various risks 3. allocation of resources 4. learning ability from partner 5. Creation of alliance 6 weighting in many alliance 1. Unique/ privilage of service 2. cost/ price
3. quality of available
ordinal ordinal ordinal ordinal
ordinal ordinal ordinal ordinal ordinal
ordinal ordinal ordinal ordinal ordinal ordinal ordinal ordinal ordinal ordinal
products 4. consumers’ experiences 5.consumers’ easiness Performance SMES (W) (H.Gin Chong,2008)
1. financial approach
2.non financial approach
1.1
Diversity of product models Frequency of getting good experiences Easeness in purchasing Confort in purchasing in SMEs Financial turnover/ flow of credits from sales agents Profit changes Investment return Growth of income and sales Growth of number of employee Customer satisfaction Waiting time in giving goods to the consumer Employee shift Market share
Analysis planning and hypothesis test Descriptive analysis is used to describe each variable in this research so the information about high and low of consideration levels of SMEs owners was gained on external SMEs, strong and weak of internal environment in carrying the competitive, partnership strategies, high and low of competition advantage of SMEs and high and low of SMEs’ performances. In verificative research, quantitative analysis with Structural Equation Modeling/SEMl) variation-based or component such as partial Least Squar to verify the connection among variables To examine the hypothesis, the study conduct statistic test F and student statistic test.
III. Finding, discussion of the study 3.1 Description of external environment, competitive and partneship strategies, competitiveness advantage and SME’s handcraft embroidery, embroidery, and weaving performance in Sumatra Barat. The following table will show the calculation of hypothesis 1 as appears in following Tabel 3.1: Tabel 3.1 Result of calculation of Hypothesis 1 Variabel Lingkungan Eksternal Lingkungan Internal Strategi Bersaing Strategi Kemitraan Keunggulan Bersaing Kinerja SMES
Kriteria UJi Diterima jika nilai lebih besar dari 2,6 Diterima jika nilai lebih besar dari 2,6 Diterima jika nilai lebih besar dari 2,6 Diterima jika nilai lebih besar dari 2,6 Diterima jika nilai lebih besar dari 2,6 Diterima jika nilai lebih besar dari 2,6
Nilai Indeks Rata-Rata
Kesimpulan
indeks rata-rata
3,52
Diterima
indeks rata-rata
3,44
Diterima
indeks rata-rata
3,57
Diterima
indeks rata-rata
2,98
Diterima
indeks rata-rata
3,2
Diterima
indeks rata-rata
3,27
Diterima
Sumber: Hasil Pengolahan Data SMES di Sumbar, n=140
ordinal ordinal ordinal ordinal ordinal ordinal ordinal ordinal ordinal ordinal ordinal ordinal ordinal
Based on Table 3.1, it appears that all of the variables showed high test criteria, so it can be said that the changes in the external environment are generally considered by SMEs embroidery, embroidery, and weaving in West Sumatra in the development of their business, even if it has not responded in the form of action; SMES embroidery, embroidery, and weaving has the power in the internal environment; competitive strategy and partnership strategy has been implemented effectively; SMES embroidery, embroidery, and weaving in West Sumatra has a competitive advantage and performance are quite high. 3.2 Environmental Effects of External and Internal Environment of the SME Competitive Strategy Embroidery, Embroidery and Weaving in West Sumatra The second hypothesis testing, conducted to examine the effect of the external environment and the internal environment of the competitive strategy, is presented in Figure 3.1. 0,511
0,433
0,68
0,684
0,613
0,538
0,466
0,499
0,594
X1
X2
X3
X4
X5
X6
X7
X8
X9
0,699
0,753
0,566
0,562
0,622
0,68
0,731
0,708
0,637
Lingkungan Eksternal
Y1
0,832
0,085
Y2
Strategi Bersaing
0,553
0,308
0,399
0,775 0,77 Y3
0,407
0,787 0,638 0,526
0,753 Y4
Lingkungan Internal Y5
0,628
0,71
0,683
0,635
0,738
0,741
0,381
0,433
0,776
X10
X11
X12
X13
X14
0,606
0,496
0,534
0,597
0,455
X15
0,451
X16 0,398
Gambar 3.1 Diagram Jalur Pengaruh Lingkungan Eksternal dan Lingkungan Internal terhadap Strategi Bersaing SMES
The second hypothesis testing proves that the external environment (X1), and the internal environment (X2) has positive effect on competitive strategy (Y1), the magnitude of the total effect of 47.4%, while the remaining 52.6% is influenced by variables others are not examined, among other characteristics of individual entrepreneurs of SMEs, market attractiveness, autonomy, and others. The results of this study indicate that the external environment and internal environment is an important factor in determining the strategy for SMEs to compete. These findings support the idea Longenecker, Moore and Petty (2003: 33) who says that to achieve leading performance, the company should make the process of external and internal environmental analysis company in determining the appropriate competitive strategy. Survival of the organization depends on the ability of SMEs SMEs to adapt the external environment, both macro and micro as well as the internal environment in order to establish what strategies are chosen to respond to external threats and opportunities (Barney in Campbell, 1997: 26; Hit, Ireland and Hoskisson, 1999: 81).
3.2 Effect of Environment toward External and Internal Environment Partnership Strategy HPI Embroidery, Embroidery and Weaving in West Sumatra
The third hypothesis testing is conducted to examine the effect of the external environment and the internal environment of the partnership strategy is presented in Figure 3.2. 0,511
0,433
0,68
X1
X2
X3 0,699
0,684
0,566
0,538
0,613
X4 0,753
X5 0,562
0,622
X6 0,68
0,731
0,708
0,466
0,499
0,594
X7
X8
X9
0,637
Lingkungan Eksternal
0,676
Strategi Kemitraan
0,553
0,793
0,683
0,635
0,738
0,371
Y8
0,841
0,352
Y9
0,535
Y10
0,293
Y11
0,357
0,802
Lingkungan Internal 0,71
0,264
Y7
0,805 0,682
0,542
0,628
Y6
0,858
0,046
0,741
X10
X11
X12
X13
X14
0,606
0,496
0,534
0,597
0,455
0,776
X15 0,451
X16 0,398
Gambar 3.2 Diagram Jalur Pengaruh Lingkungan Eksternal dan Lingkungan Internal terhadap Strategi Kemitraan SMES
The third hypothesis testing proves that the external environment (X1) and the internal environment (X2) and a significant positive effect on the partnership strategy (Y2),is with the magnitude of the total effect of 32.4%,is while the remaining 67.6% is influenced by others variables that are not examined among other characteristics of individual entrepreneurs of SMEs, market attractiveness, autonomy policy and others. This indicates that by adapting to changes in the external environment, both macro and micro environment then are adjusted to an internal environment that is owned SMEs, thus the determination of appropriate partnership strategy will be realized. The results of this study also shows that the external environment and internal environment is an important factor in determining the strategy for SME partnerships. These findings support Wahyu (2003), Cravens (2009), which state that the reasons that push to make a alliances strategy besides external factors are internal factors that have been the motive and purposes of the establishment of alliances strategic which include (1) an increase in the complexity of the technology, (2) financial constraints; (3) The need to enter the market; (4) Access to inputs, outputs and management experience; (5) and skills gaps and resource companies. 3.3 Effect of Environment towards External and Internal Environment SME Competition of Embroidery, Embroidery and Weaving in West Sumatra and competition strategy and Partnership Strategy The fourth hypothesis testing is conducted to examine the effect of the external environment and the internal environment of the competitive advantage through competitive strategy and partnership strategy is presented in Figure 3.3.
0,511
0,433
0,68
0,684
0,613
0,538
0,466
0,499
0,594
X1
X2
X3
X4
X5
X6
X7
X8
X9
0,699
0,753
0,566
0,562
0,622
0,68
0,731
0,708
0,637
0,021 Lingkungan Eksternal
0,308
0,399
0,407
0,381
0,433
Y1
Y2
Y3
Y5
Y4
0,832 0,775
0,085
0,77
0,787
0,844 Z1
Strategi Bersaing
0,046
0,553
0,793
0,805
Keunggulan Bersaing
-0,086
0,8 Z2
0,802 0,858
0,886
0,386
Strategi Kemitraan
0,638
0,215
0,753
0,682
Y11
0,357
0,841
0,36
0,542 Y6
Y7
Y8
Y9
Y10
0,264
0,371
0,352
0,535
0,293
Lingkungan Internal
0,628
X10
0,606
0,71
0,683
0,635
0,738
0,031
0,741
X11
X12
X13
X14
0,496
0,534
0,597
0,455
0,776
X15
X16
0,398 0,451
Gambar 3.3 Diagram Jalur Pengaruh Lingkungan Eksternal dan Lingkungan Internal terhadap Keunggulan Bersaing SMES Melalui Strategi Bersaing dan Strategi Kemitraan
The fourth hypothesis testing to prove that the external environment (X1), and the internal environment (X2) and a significant positive effect on competitive advantage (Z) through a competitive strategy (Y1) and partnership strategy (Y2), with the magnitude of the total effect of 15.6%, while the remaining 84.4% is influenced by other variables not examined, among other characteristics of individual entrepreneurs of SMEs, market appeal, marketing mix, customer relationships and brand equity and others. This indicates that by adapting and responding to any changes in the external environment, both macro and micro environment, and then adapted to the conditions of the internal environment of SMEs owned, so the realization of competitive strategy and strategy kmitraan the right, which have an impact on the achievement of competitive advantage of SMEs. The results showed that the competitive advantage of SMEs is influenced by factors that exist in the external environment and the factors that exist in the internal environment. From these two variables, which affect the greatest contribution is the competitive advantage of an internal environment that is equal to 0.031 (3.1%), while the external environment accounted for 0,021 (2.1%). Besides, the competitive advantage of SMEs is influenced by the competitive strategy adopted by SMEs, where a large influence of 0.386 (38.6%), while the partnership strategy does not affect the achievement of competitive advantage of SMEs. The competitive strategy and partnership strategy is determined and based on the analysis of the external environment and the internal environment. This finding is in line with the results of a study conducted by Tambunan (2009), shows that there are three important aspects that influence the competitive advantage, those are, (1) the internal factors of the company (2) The external environment, and (3) the influence of entrepreneurs business owners, which includes internal factors including the human resources aspects of the education level of workers, entrepreneurial skills, availability of capital, organization and management system, the availability of technology, the availability of information and the availability of other inputs. Meanwhile, according to research conducted by Anatan and Ellitan (2009) suggest that the competitive advantage (competitive advantage) of a company depends on the suitability (match) between the company's internal capabilities and external conditions change.
According to of Thomson, Strickland and Gamble (2010), by applying one of the good competitive strategy of differentiation strategy, focus, and cost leadership can provide an opportunity for companies to achieve sustainable competitive advantage. On the other hand Cravens (2009) also explains the partnership strategy (cooperation) also increase competitive advantage. 3.4 Effect of Environment and External and Internal Environmental Performance HPI Embroidery, Embroidery and Weaving in West Sumatra Through Competitive Strategy, Partnership Strategy and Competitive Advantage The fifth hypothesis testing is conducted to examine the effect of the external environment and internal environment on the performance of SMEs through competitive strategy, strategic partnerships and competitive advantage is presented in Figure 3.4. 0,511
0,433
0,68
0,684
0,613
0,538
0,466
0,499
0,594
X1
X2
X3
X4
X5
X6
X7
X8
X9
0,699
0,753
0,566
0,562
0,622
0,68
0,731
0,708
0,637 0,021
Lingkungan Eksternal
0,399
0,308
Y1
0,407
Y2
0,832
0,775
Y3
0,77
0,085
0,787
-0,079
0,381
0,433
Y5
Y4
0,558
w1
0,753
Strategi Bersaing
0,844
0,135
0,215
0,386
0,046
Keunggulan Bersaing 0,553
-0,086 0,638
0,36
Strategi Kemitraan 0,793
Y6
Y7
0,264
0,371
0,805
0,682
Y8
0,352
Lingkungan Internal
Z1
0,886
-0,036
0,8 Z2
Kinerja IKM 0,938
0,195 0,802
0,858
0,542
0,625
Y11
w2
0,357
0,841
0,120
Y9
Y10
0,535
0,293
0,031
0,433
0,628
X10
0,606
0,71
0,683
0,635
0,738
0,741
X11
X12
X13
X14
0,496
0,534
0,597
0,455
0,776
X15
X16
0,398 0,451
Gambar 3.4 Diagram Jalur Pengaruh Lingkungan Eksternal dan Lingkungan Internal terhadap Kinerja SMES Melalui Strategi Bersaing, Strategi Kemitraan dan Keunggulan Bersaing
The fifth hypothesis testing proves that the external environment (X1), and the internal environment (X2) and a significant positive effect on SME performance (W) through a competitive strategy (Y1), partnerships strategy (Y2) and competitive advantage (Z) with a total of the effect of 37.5%, while the rest62.5% is influenced by other variables not examined, among other characteristics of individual entrepreneurs of SMEs, market appeal, marketing mix, customer relationships and brand equity and others. This indicates that by adapting and responding to any changes in the external environment, both macro and micro environment, and then are adapted to the conditions of the internal environment of SMEs owned, so the realization of competitive strategy and strategy kmitraan the right, which have an impact on improving the competitive advantage of SMEs that will enhance the competitive advantage of SMEs. The results shows that the performance of SMEs is influenced by factors that exist in the external environment and the factors that exist in the internal environment. From these two variables, the biggest contribution that affects the performance of SMEs is an internal environment that is equal to 0.433 (43.3%), while the external environment does not improve the performance of SMEs, as it has a negative and significant effect on the performance of SMEs. These findings in line with research conducted by Musram munizu (2010), who states that the performance of small and medium enterprise sector is
influenced by two factors: the external environment and the internal environment. Besides, the performance of SMEs affected by the competitive strategy and partnerships strategy with a contribution amounting to 0.135 (13.5%) and 1,195 (19.5%). The competitive strategy and partnership strategy is determined and based on the analysis of the external environment and the internal environment. While the competitive advantage of SMEs do not improve performance, because it has a negative effect and no significant effect on the performance of SMEs. This is because not proper and effective implementation of competitive strategy and strategic partnerships, in addition to the intertwined partnership strategy does not bring competitive advantage for SMEs, visible from a partnership strategy has negative and it does not have significant effect to the competitive advantage of SMEs. Overall the results of statistical calculations using SmartPLS software version 2.0, can be seen in Figure 3.5 0,5260 Lingkungan Eksternal (X1)
-0,079 0,6250 0,021
0,085 Strategi Bersaing (Y1)
0,046
0,135 0,386
0,553 0,638
0,542
Strategi Kemitraan (Y2)
Lingkungan Internal (X2)
-0,086
Keunggulan Bersaing (Z)
-0,036
Kinerja IKM (W)
0,195
0,031 0,433
0,8440
0,6760
Gambar 3.5 Besarnya Pengaruh Antarvariabel Hasil Penelitian
Based on test results of verification above, a conclusion can be drawn that the low performance of SMEs, especially in the financial aspect of improvements in revenue / sales, increase profits / gains, gain fluency and rate of return on capital receivable caused by HPI has not had a competitive advantage. This is evident from a competitive advantage to have a negative effect and no significant effect on the performance of SMEs. based on the results of the descriptive variables where the competitive advantage of SMEs less attention to unique services to its customers in the form of bonuses, lack of experience and convenience for consumers in the form of ease of shopping and convenience in shopping. While the level of product quality, attention to new SMEs in terms of quality of material and stitching quality, but for a variety of designs and models have not been considered properly by the HPI. Besides, the cost of production is too large both material costs and labor costs causes product costs incurred by consumers to buy the products of SMEs is too big. All this led to the SME embroidery, stitching and weaving does not have competitive advantages that decrease the performance of SMEs. The low competitive advantage of SMEs because the ineffectiveness of the implementation of competitive strategy and partnership strategies by SMEs embroidery, stitching and weaving in West Sumatra. This is reinforced by the strategy and the partnership has no significant negative effect on competitive advantage. Where the partnership strategy adopted by both SMEs with local governments, universities, large
business and other stakeholders have not been able to answer or solve the problems that SMEs do not partnership that exists on target (not according to what is needed by SMEs). Besides, have not coordinated by intermediation role in an integrated interagency / agencies that perform the function to develop and nurture SMEs. It is likely the occurrence of overlapping programs and inefficiencies funds. And partnerships that have been made are temporary (short-term) and rarely sustainable for the long term. On the other hand the application of competitive strategy by SMEs has not been effective, especially the differentiation strategy. This is apparent lack of product innovation both in terms of model / design, product diversity and the diversity of colors and materials. Besides, the manufacture of products not adjust to the tastes of the market, both in terms of design / model, color, type of material, even the diversity of products. Where is. The ineffectiveness of competitive strategy and strategic partnerships run by HPI embroidery, stitching and weaving caused by a lack of insight, skill and knowledge of SMEs will change in the external environment that can bring opportunities for their business because the majority of entrepreneurs / managers of SMEs with low education (high school), so that the determine the competitive strategy and partnership strategies not based on changes in the external environment, but most are based or referenced are strengths that exist in its internal environment. Changes in the external environment are less responded in the form of action by SMEs embroidery, stitching and weaving in West Sumatra so that changes in the external environment becomes a threat to the SME entrepreneurs, who do not have an impact on the competitive advantage of even low performance of SMEs. Besides SMES embroidery, embroidery and weaving have drawbacks in terms of human resources (both employers / managers and workers) that lack the expertise (skills) in the design, lack of insight into the business so it cannot take the opportunities that exist in the external environment, have low education, less in terms of both technological mastery of production technology and the Internet; weak in terms of capital, lack of doing R & D, and marketing system that has not been effective. Based on the results of the research study all the above, the overall findings in this study are summarized in Table 3.2. No 1 2 3 4
Tabel 3.2 Temuan Hasil Penelitian Verivikatif Hipotesis Lingkungan eksternal dan lingkungan internal berpengaruh terhadap Strategi Bersaing SMES bordir, sulaman dan tenun di Sumatra Barat Lingkungan eksternal dan lingkungan internal berpengaruh terhadap Strategi kemitraan SMES bordir, sulaman dan tenun di Sumatra Barat Lingkungan eksternal dan lingkungan internal berpengaruh terhadap keunggulan bersaing SMES bordir, sulaman dan tenun di Sumatra Barat melalui Strategi bersaing dan Strategi kemitraan Lingkungan eksternal dan lingkungan internal berpengaruh terhadap kinerja SMES di Sumatra Barat melalui Strategi Bersaing, strategi kemitraan dan keunggulan bersaing
Kesimpulan Hipotesis diterima, mendukung teori Hipotesis diterima, mendukung teori Hipotesis diterima, mendukung teori Hipotesis diterima, mendukung teori
dan dan dan dan
Sumber : Hasil Pengolahan Data SMES di Sumatra Barat 2010
3.5 Discussion Troubleshooting 3.5.1 Mapping Strategies This study finds in important findings to improve the performance of SMEs in maintaining long-term survival, i.e. through the form of action in response to changes in the external environment in the development of SMEs, and improve the strengths that exist in the internal environment of SMEs, so that the
adjustment between the external environment and internal environment properly will determine competitive strategy and the right strategy and effective partnerships, which will have an impact on the achievement of competitive advantage and improved performance of SMEs. Based on the research findings and the above considerations, the complete strategy map is structured as follows: Peningkatan Kinerja IKM
17
Peningkatan pertumbuahan pelanggan
Peningkatan pendapatn dan laba
18
Memperoleh pelanggan Baru
Harga Premium
Peningkatan penjualan
Peningkatan Kepuasan pelanggan
13
14
15
16
Keunggulan Bersaing
12 Strategi diferensiasi
Meningkatkan kualitas layanan
4
10
Meningkatkan kualitas produk
5
Meningkatkan Keanekaragman Produk
Menjalin kerjasama dengan Beberapa Stakeholder yg terkait
Meningkatkan kualitas hubungan dengan pemasok
Meningkatkan kualitas hubungan dengan saluran distribusi dan pelanggan
6
7
8
9
Posisi Bersaing yang Kuat
2
11
Strategi Kemitraan
Meningkatkan Kekuatan Internal IKM
3
Lingkungan Eksternal yg kondusif
1
Kemampuan SDM IKM (Pengusaha & Pekerja) yg kompeten dan berskill
Kestabilan politik dan hukum
Kemampuan Produksi
Kebijakan Pemerintah yg Berpihak pada IKM
Peningkatan Pendanaan/modal Kemampuan Research dan pengembangan (R&D) Kemampuan Pemasaran Ketersediaan sistem Informasi
Pertumbuhan ekonomi yang lebih baik Infrastuktur yg mendukung (Jalan, telpon, dan air) Dukungan Teknologi Informasi Ketersediaan Skim Kredit
Gambar 3.6 Pemetaan Strategi Pemecahan Masalah SMES Bodir, Sulaman dan Tenun di Sumatra Barat
In this study, the external environment and the internal environment are the solution variables, these two variables do not provide optimal results when they are not supported by some parties (stakeholders) and they indicate that employers and workers SMEs embroidery, stitching and weaving. In the picture above, it is a necessary to implement the strategy in the problem-solving efforts should be begun by looking at changes in the external environment that could either controlled by the government in the form of political circumstances, economic conditions, and policies that support the provision of infrastructure and thus creating an environment conducive to SMES (point 1). Besides the need to be supported by the ability and competence of both the availability of internal SMEs HR (employers and workers) qualified and skilled, strong capital support, the availability of information needed in the development of the business (external environmental information, information consumers, competitors, and information acquisition of raw materials) (2 points), thus achieving a strong competitive position (point 3). At the operational level, the variable differentiation strategy (10 points) require action to improve the quality of service (point 4), improve product quality (good quality materials, stitching, and design / model) (5 points), increasing the diversity of products (extend the product line) (6 points). Strategies run in conjunction with the partnership strategy (11 points), which requires SMEs to implement external cooperation with several
stakeholders (universities, local governments, big business, state, etc.) (points7), improving the quality of relationships with suppliers to ensure the supply schedule, quality raw materials, the price according to the agreement (8 points), as well as improving the quality of relationships with distribution channels r (selling agent) in terms of the amount of supply, price, quality desired (9 points). Both of the above business strategy if done jointly and in accordance with the commitments that have been established and coordinated among agencies / institutions in carrying out their respective functions so that it will achieve competitive advantage (12 points) and produces superior performance of SMEs, namely an increase in subscriber growth (represented by 13 points), income (represented by points 15 and 16) and cost (14 points). 3.5.2 Operasionalisasi Strategy Based on the mapping strategies (strategy mapping) made, arranged operationalization strategies that can be run by the HPI which is based on a priority order that can be implemented by the SME entrepreneurs. Operational measures to improve the monitoring of and response to the external environment, increasing the strength of the internal environment of SMEs, improving the implementation of competitive strategy and strategic partnerships as follows: 1) Improve monitoring and responding to changes in the external environment of SMEs Table 3 1) Improve monitoring and responding to changes in the external environment of SMEs Tabel 3.3 Langkah-langkah Operasional Peningkatan Pemantauan dan Respons Terhadap Perubahan Lingkungan Eksternal Indikator Demografi
Langkah Operasional
Pemasok
Meningkatkan pemantaun dan merespon terhadap pertumbuhan penduduk dalam hal usia, jenis kelamin serta jumlah pendapatan Meningkatkan respons terhadap kondisi perdagangan saat ini, tingkat suku bunga kredit Meningkatkan respons terhadap infrastruktur apa saja yang telah disediakan oleh pemerintah Meningkatkan pengetahuan akan kebutuhan dan keinginan konsumen terhadap produk SMES (merespons apa yang menjadi selera konsumen) Meningkatkan pemantauan terhadap keberadaan dan ketersediaan tenaga kerja yang terampil dan memiliki skill. Merespons setiap langkah strategis yang diterapkan oleh pesaing, serta kualitas produknya Merespons terhadap kebijakan perpajakan yang berlaku baik domestik maupun internasional, serta kebijakan harga Meningkatkan dan merespons setiap tindakan pemasok.
Teknologi
Merespons perubahan teknologi baik internet dan teknologi produksi
Ekonomi Institusi Pemerintah Konsumen Tenaga Kerja Pesaing Politik
2) Increase the strength of the internal environment of SMEs, it needs efforts to improve information systems functions, R & D, and HR as in table 3.4 Tabel 3.4
Langkah-langkah Operasional Strategi Peningkatan Kemampuan Internal Indikator Kemampuan dan Skill SDM
Langkah Operasional 1. 2. 3. 4.
Kemampuan Produksi
1. 2. 3. 4.
Penguatan modal usaha
Kemampuan R&D Sistem Informasi
1. 2. 3.
Meningkatkan kemampuan manajerial Meningkatkan kemampuan skill dan keterampilan baik skill dalam desain produk, maupun skill penggunaan teknologi internet. Meningkatkan Kemampuan kewirausahaan serta wawasan bisnis Meningkatkan keramahan, kecakapan dan kecepatanggapan baik pegawai dan pemilik meningkatkan mutu (kualitas produk) baik kualitas bahan, jahitan dan desain/model meningkatkan standard operasional dalam pembuatan produk meningkatkan hubungan baik dengan pihak supplier (bagian hulu) dalam tepatnya pengiriman bahan baku, kualitas, serta harga Meningkatkan hubungan baik dengan pihak saluran distribusi (agen penjual) dalam hal kesepakan jumlah produk, harga dan kualitas yang diiinginkan konsumen Meningkatkan Sumber Pendanaan Melakukan Pemisahan Keuangan pribadi dengan keuangan usaha Mempergunakan keuangan perusahaan secara efektif
Membangun kerjasama dengan pihak Perguruan tinggi dan litbang dalam melakukan pengembangan produk dalam hal desain/model dan kualitas 1. Aktif dalam kegiatan asosiasi, paguyuban, dan himpunan antar SMES dalam mendapatkan informasi 2. Melakukan kerjasama dengan pemerintah setempat dalam mendapatkan informasi mengenai bahan baku, konsumen dan peraturan dan informasi pasar 3. Melakukan kerjasama dengan pihak Perguruan tinggi dalam mengembangkan teknologi informasi 4. Melakukan konsultasi dalam mendapatkan informasi dengan lembaga business development service 5. Aktif mencari informasi yang menyangkut pengembangan usaha baik yang diperoleh dari internet, media televise, Koran dll
3) Improving the implementation of competitive strategy, especially a strategy of differentiation and overall low cost as it is shown in Table 3.5 Tabel 3.5 Langkah-langkah Operasional Meningkatkan Pelaksanaan Strategi Bersaing Indikator Strategi diferensiasi
Langkah Operasional 1. 2. 3. 4. 5. 6.
Strategi Biaya rendah Keseluruhan
1.
Melakukan perbaikan secara terus menerus terhadap proses produksi, baik dalam hal desain, kualitas, teknik pengerjaan, bahkan bahan baku dengan aktif terlibat dalam konsultasi dengan BDS Memberikan tawaran yang berbeda dengan desain yang terbatas (Customized design) Selalu menggali apa yang menjadi trend yang berlaku di pasar. Meningkatkan keanekaragaman produk serta memberikan firur tambahan. Meningkatkan pelayanan yang lebih baik kepada pembeli Menciptakan brand Image yang lebih unggul Melakukan kerjasama dengan antar sesama SMES dalam satu kecamatan (clustering), kerjasama tersebut dalam pembelian bahan baku/peralatan, saluran pemasaran (jaringan pasar baik ditingkat
2.
domestik maupun internasional) Menerapkan konsep value chain mulai dari tahap pembelian dengan pihak pemasok (dalam kesepakan dalam memasok bahan baku, jumlah , harga dan waktu pengiriman yg tepat) , pengaturan proses produksi yg efisien, melakukan kerja sama dengan pihak saluran distribusi/agen penjual (dalam hal kesepakatan memasok produk baik jumlah, kualitas, waktu pengiriman dan harga yg telah disepakati)
Improving the implementation of the strategy needs an effort to increase strategic partnership alliances, resource gathering strategy and risk sharing as it is shown in table 3.6 Tabel 3.6 Langkah-langkah Operasional Meningkatkan Pelaksanaan Strategi Kemitraan Indikator Aliansi
Langkah Operasional 1. 2. 3.
Kedudukan Kolaborasi1. 2. 3. 4. pengumpulan 1. sumberdaya dan berbagi resiko 2. 3.
Memusatkan (fokus) perhatian akan manfaat usaha yang didapatkan dari aliansi Mencari partner usaha dimana dapat menjadikan usaha lebih unggul Memanfaatkan keunggulan suatu SMES lain dengan mengompensasi kelemahan usaha dengan keunggulan yang dimiliki oleh sang mitra bisnis Melakukan posisi kerjasama yang akan dilakukan dengan menerapkan apa yang menjadi hak dan kewajiban. Meningkatkan kejujuran dalam berusaha Menentukan pembagian keuntungan Membuang rasa curiga satu sama lain Menentukan terlebih dahulu sumberdaya yang akan digabungkan untuk ditingkatkan Memanfaatkan sumberdaya yang saling melengkapi bagi pembelajaran dan efisiensi Menentukan pembagian resiko yang akan dialami
IV. CONCLUSIONS AND RECOMMENDATIONS 4.1 Conclusion 1) Changes in the external environment has been considered by SMEs embroidery, stitching and weaving in West Sumatra, but less responded in the form of the action in the determination of competitive strategy and strategic partnerships, so that changes in the external environment becomes a threat to the SMEs. This is due to the lack of knowledge of the SME entrepreneurs to external environmental factors, especially the macro environment, considering the majority of the SME entrepreneurs have low formal education (high school graduate), lack of knowledge in the use of technology (information technology), as well as lack of business insight. This resulted in a lack of product innovation both in terms of design / model, color diversity, and diversity of the types of products produced and less responsive to the needs and desires of the market so that the internal environment of SMEs do not make the source of competitive advantage. Besides SMES embroidery,
stitching and weaving are less successful in implementing competitive strategies (differentiation) and partnership strategy. This is evident from the lack of product innovation so that the product does not have uniqueness when compared with competitors, while strategic partnership that goes well with universities, local governments and other stakeholders do not bring competitive advantage and improved performance of SMEs, because the partnership that exists has not been able to overcome the weaknesses of SMEs partnership that exists even short-term and rarely sustainable. 2) The external environment and internal environment significantly influence competitive strategy HPI embroidery, embroidery, and weaving in West Sumatra. Contributions biggest influence comes from the internal environment. This is due to changes in the external environment are less responded well even be a threat so that in determining the competitive strategy, SMEs embroidery, stitching and weaving based on the strength of the internal environment. Given the limited knowledge and insight into the business of SME entrepreneurs. It is seen from the products made by SMEs has not touched consumer tastes both in terms of design / model, color products, and variety of products. Besides the SME entrepreneurs rarely utilizing advances in information technology (internet) in marketing their products. 2) The external environment and internal environment significantly influence the SME partnership strategy embroidery, embroidery, and weaving in West Sumatra. Contributions biggest influence comes from the internal environment. This is because SMEs motivation to cooperate is based on weaknesses in the internal environment, which is based on the rare chance of making the external environment which gave access to the market. This is evident from the lack of cooperation of research in terms of making products that suit the tastes of the consumer and / agencies, the lack of establishment of cooperation with the tourism department to market / promote SME products to domestic and international markets. 3) The external environment and internal environment significantly influence the competitive advantage of SMEs embroidery, stitching and weaving in West Sumatra through competitive strategy and partnership strategies simultaneously. Contributions biggest influence comes from the internal environment through indirect competitive strategy. But the determination and implementation of partnership strategies have not been able to increase the competitive advantage of SMEs either directly or indirectly. This is because the partnership that exists has not been able to overcome the weaknesses and constraints of SMEs, namely the increasing capabilities, insights, skills and knowledge of the business and the SME business environment. This is evident from the weak ability to innovate, weak knowledge of the use of information technology, and limited marketing channels. 4) The external environment and internal environment affects the performance of SMEs through competitive strategy, strategic partnerships and competitive advantage simultaneously. The reduced performance of SMEs, especially in the financial aspects caused by HPI has not had a competitive advantage. This
is evident from a competitive advantage to have a negative effect on the performance of SMEs. It is caused by the SME product embroidery, stitching and weaving are less innovative in terms of design / model, color, yet has many variations that have not been touched tastes of the market, SMEs are less provide services to customers in terms of bonuses, pay less attention to comfort and enjoyable experience for customers, in addition to the large production costs ranging from the acquisition of raw materials, labor costs so that the costs incurred by the consumer in the purchase of such products large / expensive when compared to competitor products. On the other hand not because of superior SME competitive strategy and strategy implementation has not been effective partnerships. This is due to a lack of knowledge, skill, skill, business insight from the side of employers and workers so that employers SMES could not respond, and respond to any changes occur in the external environments. References Rosid,
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