Contribution of pesanggrahan MSMEs strategy as a sustainable former of the ASEAN economy

Abstract

MSMEs are the backbone of the economy in Indonesia and business entities that have saved the country from decline. MSMEs can be run with flexible capital and have high product diversification potential, the opportunity to create a wide variety of products is very possible. However, this raises new problems, namely increasing competition among MSME players from time to time. The global market also increases the need for competitive advantages from MSME players. For this reason, this research discusses things that influence and determine the competitiveness strategies of MSMEs both in local markets and in global markets. The method used in this research Partial Least Square (PLS) approach using Smart PLS software. The population taken in this research were owners or managers of MSMEs in Pesanggrahan District,The sampling technique was carried out at simple random (simple random sampling) which provides an equal opportunity for each element of the population to be selected as a sample considering that the number of MSMEs reaches thousands in Pesanggrahan District and was obtained 70 respondents from 128 samples which was distributed through questionnaires to MSMEs in Petukangan Utara Subdistrict.Results pResearch shows that product innovation and working capital have a positive and significant effect, while information technology and management knowledge do not have a significant effect.