Dynamics of the Social Capital in Increasing the Competitiveness of the Riau Malay Woven Fabric Pekanbaru

The interaction of group participation from the social capital activity of the Riau Malay woven fabric IKM business group in Pekanbaru is intertwined with group participation, which continues to form a strong network. This research uses a qualitative case study approach to analyze the dynamics of the role of social capital to increase the competitiveness of Riau Malay woven fabric SMEs in Pekanbaru. Data collection techniques using observation, interviews, and documentation. Purposive sampling was used in determining informants and triangulation technique used. The role of social capital in the Riau Malay Woven Fabric industry in Pekanbaru was found in the research results. It showed a strong social bonding because they had the same kinship and ethnic Malay Islam, so social interaction was formed on a sense of togetherness, empathy, and firm trust. The implications are contributing empirically and relevant theories to the development of social capital as a competitive strategy. Keywords: competitive advantage; social capital; innovation; craft industry