Partnership model for small industry in cluster perspective in encouraging regional development (case study on some small industries in Jambi City)

Erfit, Erfit and Yulmardi, Yulmardi (2018) Partnership model for small industry in cluster perspective in encouraging regional development (case study on some small industries in Jambi City). Jurnal Perspektif Pembiayaan dan Pembangunan Daerah, 6 (2). pp. 235-242. ISSN 2338-4603

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This study aims to analyze: 1)the profile of the small industry clusters in Jambi City, those are batik industry cluster, tofu/tempeh industry cluster and furniture industry cluster; 2)the collaboration/partnership between various business actors and other parties in small industry cluster in Jambi Cityworks;3) aneffective partnership models for small industry clusters. This research is a collective case study (survey and case study). The analysis was carried out on the profile of the small industry cluster and the partnership between various industrial groups in the small industry cluster.The results of the study showedthat Jambi Cityhas potential for the development of small industries. Itcan be seen from the development of business and employment in small industries. Based on the partnership between industry groups, in Batik industry cluster and tofu/tempe industry cluster, it showed the existence of upstream partnership to the source of raw materials, downstream partnership to the consumers, and partnership with supporting industries. In terms of pattern, the partnerships are directed towards traditional partnerships which are based on trust. Meanwhile in the furniture industry cluster, there is no partnership at all, both upstream and downstream, as well as partnership with the supporting industries. However, the partnerships have not been effective. For this reason, it is necessary to build a partnership in small industry cluster that pays attention to the principle of mutual benefit, equality, legality, empowerment, and social capital.Keywords: Small industry cluster, effective partnership,regional developmentJEL Classification: L22, L26, L52INTRODUCTIONMSMEs in general and small industries in particular are one of the drivers for regional economic growthuntil now. It can be seenfromthe role of MSMEs in their contribution to GRDP and employment opportunities for a region. However, in its development, small industries are stillfaced with various problems so that they have not been able to provide optimal contributions to the economy of a region. Various problems faced by small industries today are related to capital, market access and limited facilities and infrastructure for the development of small industries (Lestari, 2010).Given the roleof MSMEsand problems faced by MSMEs, especially of small industries, the government has made various efforts in order to encourage the development of these small industries, one of them through cluster approach. In general,Nugroho et al. (2008) definedindustrial clusters as a network of interrelated industrial

Type: Article
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Fakultas Ekonomi dan Bisnis > Ekonomi Pembangunan
Depositing User: Erfit
Date Deposited: 19 Mar 2021 08:45
Last Modified: 19 Mar 2021 08:45

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