Strategies for Increasing Internationalization In Furniture Smes In Lamongan Regency
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Published:
Apr 14, 2022
Keywords:
SWOT Analysis, Business Strategy, Internationalization, SMEs
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Computer Science
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Abstract
This study discusses the opportunities, challenges, strengths and weaknesses of furniture SMEs in Lamongan Regency. The results of the Assessment will be used as a basis for developing an internationalization improvement strategy. The analysis used in this research is SWOT analysis and external internal matrix. The results showed that furniture SMEs in Lamongan Regency had strengths and good opportunities in improving their international performance. Based on the existing environment, these SMEs are in a determined position (carefully). Therefore, a suitable business strategy to be developed is a product development strategy by focusing on developing product diversification, differentiating, branding of products, maximizing cooperation in shipping goods, and increasing the number of alternative suppliers, in order to improve international quality.
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Yaskun, M., Sudarmiatin and Bidin, R. (2022) “Strategies for Increasing Internationalization In Furniture Smes In Lamongan Regency”, Jurnal Mantik, 6(1), pp. 163-169. doi: 10.35335/jurnalmantik.v6i1.2214.
References
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Assaf A.G., Alexander J., Brian T.R., Carlos P.B. (2012). Internationalization and Performance of Retail Firms : A Bayesian Dynamic Model. Journal of Retailing, Vol. 88 No. 2, pp.191-205.
AyandibuA.O.andHoughtonJ.(2017),Therole of Small and Medium Scale Enterprise in local economic development (LED), Journal of Business and Retail Management Research (JBRMR), Vol. 11 No.2, pp.133-139.
Babaesmailli,M.,Arbabshirani,B.andGolmah, V. (2012), Integrating analyticalnetwork process and fuzzy logic to prioritize the strategies: a case study for tile manufacturingfirm,ExpertSystemswith Applications,Vol.39No.1,pp.925-935.
Bhamra, T., Hernandez, R. J., Rapitsenyane, Y., and Trimingham, R. (2018). Product Service Systems: A Sustainable Design Strategy for SMEs in the Textiles and Leather Sectors. She Ji, The Journal of Design, Economics, and Innovation, Vol. 4 No. 3, pp.229–248.
Budi, I., Bhayangkara, W. D., and Fadah, I. (2016). Identification of Problems and Strategies of the Home-Based Industry in Jember Regency. Agriculture and Agricultural Science Procedia, Vol. 9, pp. 363–370.
Busaidi, K.A.A. (2014). SWOT of social networking sites for group work in government organizations: An exploratory Delphi study from IT managers’ perspective, VINE: The journal of information and knowledge management systems, Vol. 44 No. 1, pp. 121 – 139.
Cahyadi, Indra. (2015). Tantangan Internasionalisasi UKM di Indonesia dalam Menghadapi Masyarakat Ekonomi ASEAN. Kajian. Vol. 20 No. 2, Hal. 129-143.
Carslen J. Dan Anderson T.D. (2011). Strategic SWOT analysis of public, private and not-for-profit festival organisations. International Journal of Event and Festival Management Vol. 2 No. 1, pp. 83-97.
Chandrarin, G., Sanusi, A., Imron, A., andYuniarti, S. (2018). An empirical study on income equality, economic growth and financial inclusion in Indonesia: model development on SMEsfinancing. International Journal of Education Economics and Development, Vol. 9No. 4, pp. 346-358.
Chelliah, S., Pandian, S., Sulaiman, M., and Munusamy, J. (2010), The Moderating Effect of Firm Size: Internationalization ofSmallandMediumEnterprises(Smes) in The Manufacturing Sector, African Journal of Business Management, Vol. 4, pp.3096-3109.
Chimucheka, T. (2013). Overview and Performance of the SMMEs Sector in South Africa. Mediterranean Journal of Social Sciences, Vol. 4 No. 14, pp.783- 795.
Click, Reid. W and Paul Harrison (2000), Does Multinationality Matter? Evidence of Value Destruction in U.S. Multinational Corporations, working paper 21, US Federal Reserve Board.
De, D., Chowdhury, S., Dey, P. K., & Ghosh, S. K. (2018). Impact of Lean and Sustainability oriented innovation on Sustainability performance of Small and Medium Sized Enterprises: A Data Envelopment Analysis-based Framework. International Journal of ProductionEconomics.
Dikova, D., Jakli?, A., Burger, A., and Kun?i?, A. (2016). What is beneficial for first time SME-exporters from a transition economy: A diversified or a focused exportstrategy?, Journal of World Business, Vol. 51 No. 2, pp. 185–199.
Dimitratos, P., Johnson, J. E., and Young, S. (2016).SME internationalization: How does the opportunity based international entrepreneurial culture matter?, International Business Review, Vol. 25 No.6.
Evans, C. and Wright, A. (2009), How to conduct a SWOT analysis, The British Journal of Administrative Management. Vol 24, pp. 10-34.
Filatotchev, I., Dyomina, N., Wright, M., and Buck, T. (2001). Effects Oof Pos- Privatization Governance andStrategies on Export Intensity in The Former Soviet Union, Journal of International Business Studies, Vol. 32 No.4, pp.853– 871.
Frese, M., Hass, L., and Friedrich, C. (2016). Personal initiative training for small business owners, Journal of Business Venturing Insights, Vol. 5, pp. 27–36.
Garcia,E.,Francisco,Paolo,Jamil.,Caboverde., and Ed, Christopher. (2018). Entrepreneurial Orientation, Perceived Competitive Threat, and Competitive Strategy Among SMEs in an Emerging- Economy Capital, RSN-PCC Working Paper Vol. 18, No.5.
Gayatri dan Setiawina. (2016). Analisis Faktor- Faktor Yang Mempengaruhi Ekspor Produk Olahan Kayu diBali. E-Jurnal EP Unud, Vol. 5 No. 1, pp. 22-34
Gentry, R., Dalziel, T. and Jamison, M. (2013). Who Do Start-Up Firms Imitate? A Study of New Market Entries in the CLEC Industry, Journal of Small Business Management, Vol. 51 No. 4,pp. 525-538.
Goerzen,AnthonyandBeamishPaulW.(2003), Geographic Scope and Multinational Enterprise Performance, Strategic Management Journal, Vol. 24 No.13, pp. 1289–306.
Hannah Koo Ka-Yin., Chau Leung-Chi., Koo Songbai Liu., and Shu-Chuen Tsui, (2011), A structured SWOT approachto develop strategies for the governmentof Macau, SAR, Journal of Strategy and Management, Vol. 4 No. 1, pp. 62 –81.
Hashim, M, K. and Hassan, R. (2008). Internationalization of SMEs: options, incentives, problems and business strategy. Malaysian Management Review, Vol. 43 No. 1, pp. 63-76.
Helms, M. and Nixon, J. (2010), Exploring SWOT analysis – where are we now?: a review of academic research from last decade, Journal of Strategy and Management, Vol. 3 No. 3, pp. 215-251.
Helms, M., Rodriguez, M, A., Rios, L, D., & Hargrave, W., (2011), Entrepreneurial potential in Argentina: a SWOT analysis, Comparative Review: An International Journal, Vol. 21 No. 3, pp. 269-287.
Hsu, Chin-Chun and Arun Pereira (2008), Internationalization and Performance: The Moderating Effects of Organizational Learning, Omega: The International Journal of Management Science, Vol. 36 No. 2, pp. 188–205.
Khatri, J. K. and Metri, B. (2016). SWOT- AHP Approach for Sustainable Manufacturing Strategy Selection: A Case of Indian SME. Global Business Review, Vol. 17 No. 5, pp. 1211–1226.
Knight, G. A., & Liesch, P. W. (2016). Internationalization: From incremental to born global. Journal of World Business, Vol. 51 No. 1, pp. 93–102.
Lu, J. W., and Beamish, P. W. (2006). SME internationalization and performance: Growth vs. profitability. Journal of International Entrepreneurship, Vol 4 No 1, pp. 27–48.
Moloud Suhaiza S., Zailani Mohammad., Iranmanesh Azmin., and Azliza Aziz , (2016), Motivations of SME entrepreneurstobecomehalalpreneurs, Journal of Science and Technology Policy Management, Vol. 7 No 2, pp. 173 – 189.
Nieto,M.,Santamaria,L.andFernandez,Z. (2015). Understanding theInnovation Behavior of Family Firms. Journal of Small Business Management, Vol. 53 No. 2, pp. 382-399.
Nina E. L. Ni Putu. (2014). Strategi PemberdayaanIndustriKecilKerajinan Produk olahan Kayu di Bali (disertasi). Program PascasarjanaUNUD.
Okpara, John. (2011). Factors constraining the growth and survival of SMEs in Nigeria, Management Research Review, Vol. 34 No 2, pp. 156 –171.
Rangkuti, Freddy. (2014). Analisis SWOT: Teknik Membedah Kasus Bisnis. Jakarta: Gramedia Pustaka Utama.
Syairozi, M. I., Pambudy, A. P., & Yaskun, M. (2021). Analisis Penerapan Good Governance dalam Sistem Informasi Keuangan Daerah. Prosiding Penelitian Pendidikan dan Pengabdian 2021, 1(1), 49-59.
Tang, Z. and Hull, C. (2012). An Investigation of Entrepreneurial Orientation, Perceived Environmental Hostility and Strategy Application among Chinese SMEs. Journal of Small Business Management, Vol. 50 No. 1, pp. 132-158.
Tricahyadinata, I. (2013) Kapabilitas inovasi usaha kecil dan menengah di Indonesia (Small and mediumbusiness innovation capability in Indonesia), Jurnal Akuntabel in Indonesian , Vol. 10, No. 1,pp.1–18.
Verjel, A.M., and Schmid, J. (2015). Possibilities of Increasing Business Sustainability in the Context of Globalization. The Case of the SMEs. Procedia Economics and Finance, Vol 32, pp 716–720.
Wang, W., and Ma, H. (2018). Export strategy, export intensity and learning: Integrating the resource perspective and institutional perspective. Journal of World Business, Vol 53 No 4, pp. 581–592.
Weihrich, H. (1982), The TOWS matrix a tool for situational analysis, Journal of Long Range Planning, Vol. 15 No. 2.
Yasa Ni Nyoman Kerti, Adnyani I G. A. D, Rahmayanti, P. L. D.(2020), The Influence Of Social Media Usage On The Perceived Business Value And Its Impact On Business Performance Of Silver Craft Smes In Celuk Village, Bali. Academy of Strategic Management Journal, Vol. 19, Issue 1, pp. 1-10.
Yuksel,I. (2012), An integrated approarch with group decision-making forstrategy selection in SWOT analysis, International Journal of Research in Business and Sosial Science, Vol 2 No 11, pp. 34-161.
Zhang, X., Ma, X., Wang, Y., Li, X., and Huo, D. (2016). What drives the internationalization of Chinese SMEs? The joint effects of international entrepreneurship characteristics, network ties, and firm ownership. International Business Review, Vol 25 No2.
Zhao, H., and Zou, S. (2002). The impact of industry concentration and firm location on export propensity and intensity: An empirical analysis of Chinese manufacturing firms. Journal of International Marketing, Vol 10 No 1, pp. 52–71
Zhou, Kevin Zheng, James R. Brown and Chekitan S. Dev. (2009). Market Orientation, Competitive Advantage, and Performance: A Demand – Based Perspective. Journal of Business Research, Vol 62, pp. 1063 – 1070.
Arsi?, S., Nikoli?, D., and Živkovi?, Ž. (2017). Hybrid SWOT - ANP - FANP modelfor prioritization strategies of sustainable development of ecotourism in National Park Djerdap, Serbia. Forest Policy and Economics, Vol. 80. pp.11–26.
Assaf A.G., Alexander J., Brian T.R., Carlos P.B. (2012). Internationalization and Performance of Retail Firms : A Bayesian Dynamic Model. Journal of Retailing, Vol. 88 No. 2, pp.191-205.
AyandibuA.O.andHoughtonJ.(2017),Therole of Small and Medium Scale Enterprise in local economic development (LED), Journal of Business and Retail Management Research (JBRMR), Vol. 11 No.2, pp.133-139.
Babaesmailli,M.,Arbabshirani,B.andGolmah, V. (2012), Integrating analyticalnetwork process and fuzzy logic to prioritize the strategies: a case study for tile manufacturingfirm,ExpertSystemswith Applications,Vol.39No.1,pp.925-935.
Bhamra, T., Hernandez, R. J., Rapitsenyane, Y., and Trimingham, R. (2018). Product Service Systems: A Sustainable Design Strategy for SMEs in the Textiles and Leather Sectors. She Ji, The Journal of Design, Economics, and Innovation, Vol. 4 No. 3, pp.229–248.
Budi, I., Bhayangkara, W. D., and Fadah, I. (2016). Identification of Problems and Strategies of the Home-Based Industry in Jember Regency. Agriculture and Agricultural Science Procedia, Vol. 9, pp. 363–370.
Busaidi, K.A.A. (2014). SWOT of social networking sites for group work in government organizations: An exploratory Delphi study from IT managers’ perspective, VINE: The journal of information and knowledge management systems, Vol. 44 No. 1, pp. 121 – 139.
Cahyadi, Indra. (2015). Tantangan Internasionalisasi UKM di Indonesia dalam Menghadapi Masyarakat Ekonomi ASEAN. Kajian. Vol. 20 No. 2, Hal. 129-143.
Carslen J. Dan Anderson T.D. (2011). Strategic SWOT analysis of public, private and not-for-profit festival organisations. International Journal of Event and Festival Management Vol. 2 No. 1, pp. 83-97.
Chandrarin, G., Sanusi, A., Imron, A., andYuniarti, S. (2018). An empirical study on income equality, economic growth and financial inclusion in Indonesia: model development on SMEsfinancing. International Journal of Education Economics and Development, Vol. 9No. 4, pp. 346-358.
Chelliah, S., Pandian, S., Sulaiman, M., and Munusamy, J. (2010), The Moderating Effect of Firm Size: Internationalization ofSmallandMediumEnterprises(Smes) in The Manufacturing Sector, African Journal of Business Management, Vol. 4, pp.3096-3109.
Chimucheka, T. (2013). Overview and Performance of the SMMEs Sector in South Africa. Mediterranean Journal of Social Sciences, Vol. 4 No. 14, pp.783- 795.
Click, Reid. W and Paul Harrison (2000), Does Multinationality Matter? Evidence of Value Destruction in U.S. Multinational Corporations, working paper 21, US Federal Reserve Board.
De, D., Chowdhury, S., Dey, P. K., & Ghosh, S. K. (2018). Impact of Lean and Sustainability oriented innovation on Sustainability performance of Small and Medium Sized Enterprises: A Data Envelopment Analysis-based Framework. International Journal of ProductionEconomics.
Dikova, D., Jakli?, A., Burger, A., and Kun?i?, A. (2016). What is beneficial for first time SME-exporters from a transition economy: A diversified or a focused exportstrategy?, Journal of World Business, Vol. 51 No. 2, pp. 185–199.
Dimitratos, P., Johnson, J. E., and Young, S. (2016).SME internationalization: How does the opportunity based international entrepreneurial culture matter?, International Business Review, Vol. 25 No.6.
Evans, C. and Wright, A. (2009), How to conduct a SWOT analysis, The British Journal of Administrative Management. Vol 24, pp. 10-34.
Filatotchev, I., Dyomina, N., Wright, M., and Buck, T. (2001). Effects Oof Pos- Privatization Governance andStrategies on Export Intensity in The Former Soviet Union, Journal of International Business Studies, Vol. 32 No.4, pp.853– 871.
Frese, M., Hass, L., and Friedrich, C. (2016). Personal initiative training for small business owners, Journal of Business Venturing Insights, Vol. 5, pp. 27–36.
Garcia,E.,Francisco,Paolo,Jamil.,Caboverde., and Ed, Christopher. (2018). Entrepreneurial Orientation, Perceived Competitive Threat, and Competitive Strategy Among SMEs in an Emerging- Economy Capital, RSN-PCC Working Paper Vol. 18, No.5.
Gayatri dan Setiawina. (2016). Analisis Faktor- Faktor Yang Mempengaruhi Ekspor Produk Olahan Kayu diBali. E-Jurnal EP Unud, Vol. 5 No. 1, pp. 22-34
Gentry, R., Dalziel, T. and Jamison, M. (2013). Who Do Start-Up Firms Imitate? A Study of New Market Entries in the CLEC Industry, Journal of Small Business Management, Vol. 51 No. 4,pp. 525-538.
Goerzen,AnthonyandBeamishPaulW.(2003), Geographic Scope and Multinational Enterprise Performance, Strategic Management Journal, Vol. 24 No.13, pp. 1289–306.
Hannah Koo Ka-Yin., Chau Leung-Chi., Koo Songbai Liu., and Shu-Chuen Tsui, (2011), A structured SWOT approachto develop strategies for the governmentof Macau, SAR, Journal of Strategy and Management, Vol. 4 No. 1, pp. 62 –81.
Hashim, M, K. and Hassan, R. (2008). Internationalization of SMEs: options, incentives, problems and business strategy. Malaysian Management Review, Vol. 43 No. 1, pp. 63-76.
Helms, M. and Nixon, J. (2010), Exploring SWOT analysis – where are we now?: a review of academic research from last decade, Journal of Strategy and Management, Vol. 3 No. 3, pp. 215-251.
Helms, M., Rodriguez, M, A., Rios, L, D., & Hargrave, W., (2011), Entrepreneurial potential in Argentina: a SWOT analysis, Comparative Review: An International Journal, Vol. 21 No. 3, pp. 269-287.
Hsu, Chin-Chun and Arun Pereira (2008), Internationalization and Performance: The Moderating Effects of Organizational Learning, Omega: The International Journal of Management Science, Vol. 36 No. 2, pp. 188–205.
Khatri, J. K. and Metri, B. (2016). SWOT- AHP Approach for Sustainable Manufacturing Strategy Selection: A Case of Indian SME. Global Business Review, Vol. 17 No. 5, pp. 1211–1226.
Knight, G. A., & Liesch, P. W. (2016). Internationalization: From incremental to born global. Journal of World Business, Vol. 51 No. 1, pp. 93–102.
Lu, J. W., and Beamish, P. W. (2006). SME internationalization and performance: Growth vs. profitability. Journal of International Entrepreneurship, Vol 4 No 1, pp. 27–48.
Moloud Suhaiza S., Zailani Mohammad., Iranmanesh Azmin., and Azliza Aziz , (2016), Motivations of SME entrepreneurstobecomehalalpreneurs, Journal of Science and Technology Policy Management, Vol. 7 No 2, pp. 173 – 189.
Nieto,M.,Santamaria,L.andFernandez,Z. (2015). Understanding theInnovation Behavior of Family Firms. Journal of Small Business Management, Vol. 53 No. 2, pp. 382-399.
Nina E. L. Ni Putu. (2014). Strategi PemberdayaanIndustriKecilKerajinan Produk olahan Kayu di Bali (disertasi). Program PascasarjanaUNUD.
Okpara, John. (2011). Factors constraining the growth and survival of SMEs in Nigeria, Management Research Review, Vol. 34 No 2, pp. 156 –171.
Rangkuti, Freddy. (2014). Analisis SWOT: Teknik Membedah Kasus Bisnis. Jakarta: Gramedia Pustaka Utama.
Syairozi, M. I., Pambudy, A. P., & Yaskun, M. (2021). Analisis Penerapan Good Governance dalam Sistem Informasi Keuangan Daerah. Prosiding Penelitian Pendidikan dan Pengabdian 2021, 1(1), 49-59.
Tang, Z. and Hull, C. (2012). An Investigation of Entrepreneurial Orientation, Perceived Environmental Hostility and Strategy Application among Chinese SMEs. Journal of Small Business Management, Vol. 50 No. 1, pp. 132-158.
Tricahyadinata, I. (2013) Kapabilitas inovasi usaha kecil dan menengah di Indonesia (Small and mediumbusiness innovation capability in Indonesia), Jurnal Akuntabel in Indonesian , Vol. 10, No. 1,pp.1–18.
Verjel, A.M., and Schmid, J. (2015). Possibilities of Increasing Business Sustainability in the Context of Globalization. The Case of the SMEs. Procedia Economics and Finance, Vol 32, pp 716–720.
Wang, W., and Ma, H. (2018). Export strategy, export intensity and learning: Integrating the resource perspective and institutional perspective. Journal of World Business, Vol 53 No 4, pp. 581–592.
Weihrich, H. (1982), The TOWS matrix a tool for situational analysis, Journal of Long Range Planning, Vol. 15 No. 2.
Yasa Ni Nyoman Kerti, Adnyani I G. A. D, Rahmayanti, P. L. D.(2020), The Influence Of Social Media Usage On The Perceived Business Value And Its Impact On Business Performance Of Silver Craft Smes In Celuk Village, Bali. Academy of Strategic Management Journal, Vol. 19, Issue 1, pp. 1-10.
Yuksel,I. (2012), An integrated approarch with group decision-making forstrategy selection in SWOT analysis, International Journal of Research in Business and Sosial Science, Vol 2 No 11, pp. 34-161.
Zhang, X., Ma, X., Wang, Y., Li, X., and Huo, D. (2016). What drives the internationalization of Chinese SMEs? The joint effects of international entrepreneurship characteristics, network ties, and firm ownership. International Business Review, Vol 25 No2.
Zhao, H., and Zou, S. (2002). The impact of industry concentration and firm location on export propensity and intensity: An empirical analysis of Chinese manufacturing firms. Journal of International Marketing, Vol 10 No 1, pp. 52–71
Zhou, Kevin Zheng, James R. Brown and Chekitan S. Dev. (2009). Market Orientation, Competitive Advantage, and Performance: A Demand – Based Perspective. Journal of Business Research, Vol 62, pp. 1063 – 1070.
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