Application of Analytical Network Process and Conditional Probability Co-occurrences Matrix for Business Modelling of Small-Medium Enterprises

Abstract

In Indonesia, the scope of agroindustry are related to the food and non-food industry managed by Small-Medium Enterprises (SME). The classical problem of Indonesian Agroindustry were related to logistic, infrastructure, technology, high-cost economy, regulation, and financing constraint. Therefore, an innovative business model is required for competitive and sustainable SME. Importance rate of the model can be defined by determining some criteria in a business model. Analytical Network Process (ANP) is required to determine importance rate of business model. However, ANP could not minimize the subjectivity factor of the respondent in determining the criteria. Application of Conditional Probability Co-occurrences Matrix (CPCM) is required to minimize the subjectivity factor by comparing priority weight of each criterias. The research objectives are: 1) To apply ANP method for representing business model criteria and attribute of SME; 2) To apply CPCM method for criteria pattern extraction. The case study of research is SME Bakpia Tela Ungu and Telopia. CPCM Pattern extraction of Contrast, Energy and Local Homogeneity indicated the significant different of business model criteria between food, non-food agroindustry and local governmental board. The research results indicated that there were different subjectivity to determine criteria priority weight.