The Dynamics of Performance Improvement among SMEs Clusters in East Java

DOI

10.2991/aebmr.k.200606.051How to use a DOI?

Keywords

clusters of SMEs, inter-firm linkages, business strategies, SME performances

Abstract

This study aimed to examine the dynamics of SMEs in small industrial clusters in East Java. The clustered SMEs are expected to harmonize their business strategies and cooperation in the form of inter-firm linkages which are a means of manifesting the social capital of clusters. To test the model, we employed SmartPLS3. The results revealed that inter-firm linkages affected performance of SMEs (β = 0.351, P-value = 0.002 at α = 5%) and this is able to intermediate the relationship between business strategies and SMEs’ performance (β = 0.583, P-value = 0.000 at α = 1%). Meanwhile, the business strategies do not significantly improve SME performance. Thus, SMEs in a cluster should utilize social capital in the form of inter-firm linkages and business strategies in a balanced manner. Unfair competition must be eliminated to achieve better performance.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Arif Hoetoro
PY  - 2020
DA  - 2020/06/09
TI  - The Dynamics of Performance Improvement among SMEs Clusters in East Java
BT  - Proceedings of the 23rd Asian Forum of Business Education(AFBE 2019)
PB  - Atlantis Press
SP  - 291
EP  - 296
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200606.051
DO  - 10.2991/aebmr.k.200606.051
ID  - Hoetoro2020
ER  -