Interfirm Collaboration Cluster as Source of Competitiveness to Enhance Performance

Abstract

Cluster is one of the competitive advantages for small business in Indonesia. This study examines the role of interfirm collaboration clusters and product competitiveness on small business performance. The sample used in this study were 317 owners or managers of furniture business in Central Java, Indonesia. The analysis used is structural equation modeling (SEM). The results of this study indicate the important role of interfirm collaboration clusters on product innovation and Small business performance. Other research results indicate that customer centricity has an effect on product innovation. This research also contributes both theoretically and managerially.