Entrepreneurial Bricolage to Facing Resource Constraint in Small Industry of Brown Cane Sugar

Gusfa Arlian Putra,Yandra Arkeman,Muhammad Romli

doi:10.17358/ijbe.7.3.237

Abstract

Bricolage theory, making do what is at hand, describes entrepreneurs' activities to sustain the business in a penurious environment. It is believed could not only develop the business but also trigger innovativeness, creativity, and sustainability. This research intends to discover how entrepreneurs overcome resource constraints using bricolage. It also aims to find the relationship between bricolage and entrepreneurs' demographic and innovative personality. The study was conducted from April to June 2020 in Central Aceh Regency. Using a survey and questionnaire to collect the data towards 26 entrepreneurs of brown cane sugar reveals that human resource is a significant constraint when running the business, specifically in finding an appropriate and loyal team member. Using bricolage, they refuse to enact with limitation by hiring people from surronding even their family members to work in this business. Meanwhile, many entrepreneurs have the resource at hand in the form of capital and knowledge since they have spent a lot of time working in similar businesses before building their brown sugar. Despite weak correlation, the relationship between variables is positive except for age and education. Bricolage and innovative personality have a weak positive correlation which means that this industry is less innovative. This research also become fundamental literature for similar future research. Keywords: bricolage, resource constraint innovative personality, small industry

Highlights

Resources have an essential role in the development of new firms (Desa and Basu, 2013)
The questionnaire on bricolage follows the measurement developed by Davidsson et al (2017) with 9-statement-like items, while innovative personality adopts the scale developed by Slaughter et al (2004) with seven items
Using the capabilities of making do, which is biased towards action and refusal to enact with limitation (Yu et al 2019), they often dive right in to produce the brown sugar and control the sugar production as a supervisor

Summary

Introduction

Resources have an essential role in the development of new firms (Desa and Basu, 2013). SMEs in developing countries like Indonesia often face resource constraints that are more acute than developed countries (Domenico et al 2010). Several studies have described entrepreneurs’ behaviors when facing resource constraints like causation, effectuation, and bricolage (Fisher, 2012). Bricolage theory, is gaining research concern since it explains the act of making do with recombination and the refusal to limitation (Baker and Nelson, 2005). Introduced by Levi-Strauss, he differentiated scientists/engineers and bricoleurs in terms of performing the work. He did not give an obvious definition of bricolage. Later on, Baker and Nelson (2005) define bricolage as “making do by applying a combination of the resources in hand to new problems and opportunities,” This definition has been used in many study areas

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