THE IMPROVEMENT OF HANDICRAFT INDUSTRY COMPETITIVENESS IN KEBUMEN, CENTRAL JAVA

Abstract

Small businesses have an important role in the economy, both in Indonesia and in other
countries. Small and Medium Enterprises (SMEs) are a group of businesses that have a large
number of small and medium business groups. In the Indonesian economy, the SME sector
is one of sustainable sectors proved to be resistant to inflation and economic crisis. The
objective of this study is to determine factors that influence the increasing competitiveness of
clay-based pottery industry in the Sub-District of Klirong, Kebumen, Central Java Province.
The data were collected by using a questionnaire distributed to the entire population
consisting of 37 artisans of pottery in the Village of Gebangsari. Data processing was done
using Smart PLS 3.0 software. The results showed that Product Excellence had a strong,
positive, and significant impact on industrial competitiveness. Marketing with Information
Technology has a weak and positive impact on industrial competitiveness. Innovation has a
weak and insignificant effect on industrial competitiveness. Last, Management of Human
Resources has a negative and insignificant effect on industrial competitiveness.