Analyzing Sustainability of SMEs in Automotive Component Industry in Bekasi Regency

Abstract

This research aim to analyze sustainability of SMEs in automotive component industry. Specifically has two main objectives, finding the relationship between sustainability and each variable, and finding the current sustainability pattern of SME in automotive component industry. The topic addressed due to the nature of industry (material and waste) where sustainability is undeniable. Supported by the growing number of SME in industry, where the effect of collective SMEs can be as big as corporation. The result of this study help to understand the current sustainability practice and as input for companies in industry. This research specifically conducted in Bekasi Regency and used the YDBA definition for SME. There are six variables that used to analyze sustainability practice in the industry, they are energy consumption, water consumption, waste management, environment preservation, equality in society, and noise and emission management. This research is conducted quantitatively by conduct survey in 30 companies. The result then analyze by using multiple regression analysis (standard and stepwise) to test the hypothesis. The results of the research found that the current sustainability practice of SME in the automotive component industry have positive significance relationship in water consumption, waste management, and noise and emission management; negative un-significant relationship with energy consumption; and positive un-significant relationship with environment preservation and equality in society. The second analysis by using stepwise shows that there are three necessary variable contribute to the current sustainability, they are water consumption, waste management, and noise and emission management.