The Potential Of Internationalization Of Small And Medium Micro Enterprises In SAWO Leather Crafts, Magetan District, East Java, Indonesia
Abstract
The Magetan leather handicraft business is one of the long-established and surviving SMEs and contributes to the creation of employment and income for the community. Currently, the marketing of leather handicraft products is still limited to meeting local and national needs so that limited market demand makes leather handicraft difficult to develop. Globalization and increasingly advanced information technology have become opportunities for the Magetanleathercraft industry to penetrate the international market, however, various obstacles arise considering that penetrating the global market is not easy for small businesses that have many limitations. The purpose of this case study is to examine the opportunities and obstacles of the Magetan leather handicraft business to penetrate the international market. This research approach is qualitative with case studies.owner of leather handicraft, owner of leathercraft marketing shop, the buyer of leathercraft, an employee of leathercraft. Data analysis includes (1) data collection (2) data display (3) data reduction and (4) conclusions.[1]The results showed that there were obstacles to the internationalization of the Magetan leather handicraft business, namely complicated international trade procedures for SMEs, No marketing channels abroad for SMEs, Limited SME resources. The solution that can be offered from this problem is not to let SMEs directly penetrate the global market independently given the limitations they have, but by providing a mediator that can bridge SMEs with foreign consumers with a Marketplace, Exporters, or Cooperatives.
Downloads
References
[2] Sepatu Kulit Magetan, “Sepatu Kulit Magetan.” [Online]. Available: https://www.sepatukulitmagetan.net/news/detail/sejarah-industri-kerajinan-kulit-magetan/.
[3] R. Vita, F. Ekonomi, and K. K. Surabaya, “KONTRIBUSI INDUSTRI KERAJINAN KULIT BAGI MAGETAN,” pp. 1–13.
[4] A. M. H. Miles, Mathew B., An Expanded Sourcebook: Qualitative Data Analysis, Second. London: SAGE Publications Asia-Pacific Pte. Ltd.
[5] N. Daszkiewicz and K. Wach, Internationalization of SMEs : Context , Models and Implementation Electronic copy available at : http://ssrn.com/abstract=2198050, no. January 2012. 2017.
[6] Group of Lisbon, Globalisation and Small and Medium Enterprises. Cambridge-London: PIT Press, 1995.
[7] P. H. V Heenan D.A., Multinational Organizational Development: A Social Architectural Approach. MA: Addison-Wesley, 1979.
[8] S. Guercini and A. Runfola, “International Marketing in the Fast Changing World Article information :,” Int. Mark. Fast Chang. World, vol. 26, pp. 15–31, 2015.
[9] C. Prange and Y. Zhao, “Chapter 12: Strategies for Internationalisation: How Chinese SMEs Deal with Distance and Market Entry Speed,” pp. 205–224, 2018.
[10] F. Morais and M. Franco, “The role of cooperative alliances in internationalization strategy: Qualitative study of Portuguese SMEs in the textile sector,” J. Strateg. Manag., vol. 11, no. 4, pp. 461–482, 2018.
[11] T. B. Peter Ayeni, Peter Ball, “기사 (Article) 와안내문 (Information) [,” Eletronic Libr., vol. 34, no. 1, pp. 1–5, 2010.
[12] A. A. Chandra, J. Paul, and M. Chavan, “Internationalization challenges for SMEs: evidence and theoretical extension,” Eur. Bus. Rev., vol. 33, no. 2, pp. 316–344, 2020.
[13] A. Arslan, S. Naughton, A. M. Tabas, and V. Puhakka, “Outward internationalisation of emerging market small and medium sized enterprises: Contract manufacturing relationship with developed market multinational enterprise(s) and capabilities development,” Contemp. Issues Entrep. Res., vol. 10, pp. 99–113, 2019.
[14] C. Pattnaik and V. Kumar, Emerging market firms in the global economy: An overview, vol. 15. 2014.
[15] J. Eduardsen, “Internationalisation through digitalisation: The impact of e-commerce usage on internationalisation in small-and medium-sized firms,” Prog. Int. Bus. Res., vol. 13, pp. 159–186, 2018.
[16] B. Kenny and J. Fahy, Smes’ networking capability and international performance, vol. 17. Emerald Group Publishing Ltd, 2011.
[17] G. M. Ahimbisibwe, J. M. Ntayi, M. Ngoma, G. Bakunda, and L. B. Kabagambe, “The internationalization of small to medium-sized enterprises: do all levels in international networking matter?,” J. Small Bus. Enterp. Dev., vol. 27, no. 5, pp. 817–837, 2020.
[18] A. Chandra, J. Paul, and M. Chavan, “Internationalization barriers of SMEs from developing countries: a review and research agenda,” Int. J. Entrep. Behav. Res., vol. 26, no. 6, pp. 1281–1310, 2020.
[19] K. Sendawula, M. Ngoma, J. Bananuka, S. N. L. Kimuli, and F. Kabuye, “Business networking and internationalization: testing the mediation role of organizational learning,” World J. Entrep. Manag. Sustain. Dev., 2020.
[20] R. Bowen, “Motives to SME internationalisation: A comparative study of export propensity among food and drink SMEs in Wales and Brittany,” Cross Cult. Strateg. Manag., vol. 27, no. 1, pp. 67–90, 2019.
[21] J. Mendy and M. Rahman, “Supporting SMEs’ internationalisation through a deeper understanding of human and technology barriers: Applying effective HRM processes from a developing country,” J. Organ. Eff., vol. 6, no. 4, pp. 205–226, 2019.
[22] S. Z. Ahmad, “Small and medium enterprises’ internationalisation and business strategy: Some evidence from firms located in an emerging market,” J. Asia Bus. Stud., vol. 8, no. 2, pp. 168–186, 2014.
[23] M. Ngoma, A. Ernest, S. Nangoli, and K. Christopher, “Internationalisation of SMEs: does entrepreneurial orientation matter?,” World J. Entrep. Manag. Sustain. Dev., vol. 13, no. 2, pp. 96–113, 2017.
[24] L. Torkkeli, O. Kuivalainen, S. Saarenketo, and K. Puumalainen, “Institutional environment and network competence in successful SME internationalisation,” Int. Mark. Rev., vol. 36, no. 1, pp. 31–55, 2019.
[25] T. Kontinen and A. Ojala, “Internationalization pathways of family SMEs: Psychic distance as a focal point,” J. Small Bus. Enterp. Dev., vol. 17, no. 3, pp. 437–454, 2010.
[26] E. Costa, A. Lucas Soares, and J. Pinho de Sousa, “Institutional networks for supporting the internationalisation of SMEs: the case of industrial business associations,” J. Bus. Ind. Mark., vol. 32, no. 8, pp. 1182–1202, 2017.
[27] L. E. Ibarra-Morales, M. Blanco-Jimenez, and B. A. Hurtado-Bringas, “Internationalization of industrial small-medium enterprises in an emerging country,” Acad. Rev. Latinoam. Adm., vol. 33, no. 1, pp. 71–94, 2019.
[28] M. Amal and A. R. F. Filho, “Internationalization of small- and medium-sized enterprises: A multi case study,” Eur. Bus. Rev., vol. 22, no. 6, pp. 608–623, 2010.
[29] A. Sundström, A. S. Hyder, and E. H. Chowdhury, “Market-oriented business model for SMEs’ disruptive innovations internationalization,” Mark. Intell. Plan., 2021.
[30] A. Zakery and M. S. Saremi, “Knowledge and intellectual capital in internationalizing SMEs, case study in technology-based health companies,” J. Intellect. Cap., vol. 22, no. 2, pp. 219–242, 2020.
[31] C. X. He and M. Karami, International opportunity development of internationalizing SMEs from emerging economies, vol. 29. 2016.
