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International Journal of Latest Research in Science and Technology

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THE COMPETITIVENESS OF SMALL AND MEDIUM AGRIBUSINESS FIRMS IN EAST JAVA INDONESIA

Research Paper Open Access

International Journal of Latest Research in Science and Technology Vol.3 Issue 5, pp 75-83,Year 2014

THE COMPETITIVENESS OF SMALL AND MEDIUM AGRIBUSINESS FIRMS IN EAST JAVA INDONESIA

Y. Lilik Rudianto

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Received : 23 October 2014; Accepted : 27 October 2014 ; Published : 31 October 2014

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Abstract

This study focused on the the competitiveness of small and medium agribusiness firms in East Java and specifically refers to the sources of competitiveness, scale advantages, handicaps imposed on small firms by their size, avoiding the disadvantages of small size, constraints on growth, sources of crises, and the resurgence of small firms. This study can be classified as applied and explanatory research. This study was conducted using both primary and secondary data. In collecting primary data, observations and interviews were the main techniques. A questionnaire was sent to the managers and top managers of 41 agribusiness firms in East Java. Information was obtained from 30 firms. The results indicate that The small and medium enterprises are less vertically integrated than large firms. One obvious explanation for this difference is that large firms are more likely to be able to fully utilize an optimum size, or at least a larger-scale facility for performing a process or providing a service which could be bought out. Three sources of competitiveness stood out: ‘the channels of distribution used’, ‘product development’ and ‘the quality of the services provided for customers’. The fourth most important source of competitiveness was efficiency of production, and this was closely followed by marketing expertise.

Key Words   
Competitiveness, vertically integrated, channel of distribution, product development, quality of ser

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To cite this article

Y. Lilik Rudianto , " The Competitiveness Of Small And Medium Agribusiness Firms In East Java Indonesia ", International Journal of Latest Research in Science and Technology . Vol. 3, Issue 5, pp 75-83 , 2014

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