Abstract
Ceramics of Malang are expected to have competitive advantage in both domestic and international market since its has uniqueness, however free trade through ASEAN-China Free Trade Agreement (ACFTA) can change market structure that affect competitiveness and performance of micro, small, and medium-sized enteprises (MSMEs) of ceramics. The purpose of this research was to analyze the role of market structure and competitive- ness in increasing performance of MSMEs of ceramics in Malang. Data were collected from 30 artisans at Dinoyo as the ceramic production center in Malang then analyzed using Generalized Structured Component Analysis (GSCA) software with market structure as the exogenuos variable, competitiveness as the intervening variables, and performance of MSMEs of ceramic as the endogenuos variable. The result of the study showed that market structure has insignificant impact on competitiveness and performance of MSMEs of ceramic in Malang. Competitiveness have not enough evidence as intervening variables between market structure and performance of ceramic enteprises, meanwhile it has significant direct effet on performance of MSMEs ceramic in Malang. This finding indicate that costs of production, quality products, and production technology are the competitive- ness variables that play important role in increasing performance of MSMEs ceramic in Malang.
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