Sanusi, Fauji and Koswara, Gerry Ganika (2021) Mapping of Processed Food Product Innovation on Small and Medium Enterprises in Banten. Joint proceedings of the 2nd and the 3rd International Conference on Food Security Innovation (ICFSI 2018-2019), 9. pp. 112-118. ISSN 2468-5747

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Abstract

The purpose of this study is to create a mapping of small and medium enterprises (SMEs) based on their internal innovation and external conditions. The model used for mapping is Quantified-SWOT analysis by adopting the concept of Multiple-Attribute Decision Making (MADM) to simplify complex problems so analysis can be carried out on several companies simultaneously. This model was tested using case study on 60 SMEs of processed food products in Lebak and Serang District, Banten. Results show that product innovation internal factors (IFE) at the observed SMEs has a value of 2.67 (on 5 scales), and external factors (EFE) that support their development are 2.51 (on 5 scales), which are both values in a weak category. However, the overall position of SMEs in the SWOT matrix coordinate is [0.122; -0.288] which located in quadrant III. It can be interpreted that SMEs are still in a weak condition and require diversification strategies. This study also provides several recommendations to improve innovation capabilities both internally and externally. Based on Weighted Value Analysis, the priority recommendations are in improving on internal side of SMEs, which are production process innovation and increasing access to the internet, while from the external side (for the government) priority recommendations are developing a market information system for SMEs, and lowering loan interest rate policy to be more pro-SMEs-oriented.

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