Abstract
The global demand for seaweed is expected to increase in the coming years due to new product development using seaweed. There are many benefits of seaweed such as pharmaceuticals, cosmetics, food industries, textiles, paper, and bioenergy production. On the other hand, Indonesia, as the archipelago country with the second-longest coastline after Canada, is expected to achieve competitiveness so Indonesia benefit more from the seaweed industry. This study aims to get the landscape of the seaweed industry and to select strategies. The strategies are designed using the Structural Equation Modelling Method – Partial Least Square (SEM – PLS). The findings of this study are the competitive advantage of Indonesia's carrageenan-producing seaweed industry using descriptive statistical methods through the perception model show considered weak. The three main parameters of concern are assessed as low-cost leadership, ability to increase export value and self-sufficiency in meeting the needs of domestic seaweed. The analysis also shows that the influence of innovation and stakeholder support on increasing the competitive advantage of Indonesia's carrageenan-producing seaweed industry is considered significant. Innovation is represented by the latent variable attributes of innovation, communication channels and the role of change agents, which are concluded to have a significant effect both directly and indirectly on the industry's competitive advantage. Keywords: seaweed industry, competitiveness, carrageenan, innovation, SEM-PLS, stakeholder support
Highlights
Indonesia’s seaweed industry is currently experiencing a paradox: it is relatively prominent in domestic but inferior in the global market
This study focuses on strategies to increase the competitive advantage of the carrageenan-producing seaweed industry
This study shows that the comparative advantages of are still low
Summary
Indonesia’s seaweed industry is currently experiencing a paradox: it is relatively prominent in domestic but inferior in the global market. Indonesia has a strategic geographical location with the longest coastline (UNCTAD, 2018), the largest coral triangle meeting in the world (KKP, 2018), and the abundance of human resources in coastal areas It does not necessarily dominate Indonesia in the global competition of the world seaweed industry. The seaweed industry including carrageenan products has the potential to become a national strategic industry (KKP, 2018). The first category focused on innovation and improving the productivity of seaweed cultivation (Serdiati & Widiastuti, 2010; Ngamel, 2012; Basmal, 2009; Pandelaki, 2012; Indonesia, 2010; Hurd, 2017; and Rabiei et al 2016). This study focuses on strategies to increase the competitive advantage of the carrageenan-producing seaweed industry. This research focuses on the strategies to increase the competitive advantage in the carrageenanproducing seaweed industry in Indonesia. The competitiveness that is analyzed in this study is national or state industry
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