INOVASI PRODUK DAN JEJARING PADA USAHA KECIL: STUDI KASUS KERAJINAN PERAK KOTO GADANG

Abstract

Many micro and small enterprises in Indonesia that have long been known as strong brand identities in the past have difficulties to transform their businesses into high-growth businesses. This is also the case in silver craft manufacturers in Koto Gadang, West Sumatra. The objective of the present study is to examine two innovation related constructs that may enhance small business performance, in this case, silver manufacturers in Koto Gadang. These are product innovation and networks. The present study uses qualitative approach. Case study method is used to capture the essence of product innovation and networks in these small businesses. Here there are six silver handicraft manufacturers that were being analysed. The present study collects and analyses the data from seven interviewees who are the owners and managers of these small businesses. It was found that product innovation has been considered important in enhancing business performance, while networks including Minangkabau networks have not been utilized by some of the participants. This means that participants need to make use of networks in order to support their innovation implementation.