Determinant Factors of Trade Industry Performance in Indonesia: AHP Approach

Abstract

Objective - This research analyses determinant factors and priority factors of trade industry performance based on 15 industries in Indonesia. Today, trade industry tends to develop well in Indonesia. It covers exporters, importers, modern markets (hypermarket and minimarket), and traditional markets. Methodology/Technique - This research uses Analytic Hierarchy Process (AHP) to analyse primary data on factors of trade industry performance. Findings - Research results indicate that there are seven factors on trade industry performance. These are NF (AHP score: 0.37), ICT (0.19), BIT (0.10), BR (0.10), BP (0.09), DC (0.08), and BE (0.07). It means that number of firm becomes the first factor while business efficiency becomes the last factor that drives business performance. Novelty - This finding can be used by trade industry associations and policy makers to manage and regulate firms involved in commerce. In addition, governments can support ICT development to improve trade industry performance. Type of Paper: Empirical Keywords: Determinant Factor; Trade Industry; Business Performance; AHP. JEL Classification: L11, L25.