Cooperation and Competition among Clustered MSEs in East Java

  • Arif Hoetoro Universitas Brawijaya
Keywords: cooperation, MSEs, East Java, Indonesia

Abstract

There has been a common picture in economic development that micro and small enterprises (MSEs) tend to conglomerate in various clusters for the sake of gaining location advantages. These MSEs then create inter-firm linkages and business strategies as the two play an important role in their performance. By taking selected manufacturing MSEs that operate in various small industrial clusters in East Java, Indonesia, this research examined the relationships between the inter-firm linkages and business strategies applied simultaneously by MSEs and their impacts on the firm’s performance. Viewed from the perspective of a co-opetition strategy, the results of this study revealed that some types of inter-firm linkages and business strategies matter for the MSEs’ performance. However, within small industrial clusters, inter-firm linkages seem to be less effective compared to business strategies in affecting a firm’s performance.

Author Biography

Arif Hoetoro, Universitas Brawijaya

HOETORO, Arif is currently attached as lecturer at the Economics Department, Faculty of Economics and Business, Universitas Brawijaya. He completed his Master in Industrial Policy from ITB and earned his PhD in Economics from International Islamic University Malaysia (IIUM), Kuala Lumpur, Malaysia. His research interests are Industrial Economics, Small Enterprises, and Islamic Economics. Some of his works have been published in International Journal of Management and Business Research, Journal of Social Sciences, and Jurnal Iqtishodia Republika.
    Author’s contact details: Faculty of Economics and Business, Universitas Brawijaya, Jl. MT. Haryono No. 165, Malang 65145, Indonesia; E-mail: hoetoro@ub.ac.id.

References

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Published
2014-12-11
How to Cite
Hoetoro, A. (2014). Cooperation and Competition among Clustered MSEs in East Java. Gadjah Mada International Journal of Business, 16(3), 275-293. Retrieved from https://dev.journal.ugm.ac.id/v3/gamaijb/article/view/15482