Abstract
The research objective was to determine the cluster development strategy based on product performance and quality and analyze the elements in the institutional cluster of gadung chips in Tulungagung Regency. The superior product of gadung chips in Tulungagung Regency is currently being developed in connection with the government's efforts to improve the regional economy through the application of the One Village One Product (OVOP) concept. The center of the gadung chips industry in Kalidawir Subdistrict, which is still active, produces 25 SMEs. The problems faced by SMEs in developing businesses, individuals, lack of communication and cooperation among SMEs with the Government, limited marketing and technology activities and low product quality. The method used is K-means cluster and FAHP. The results showed that the grouping of SMEs gadung chips based on the performance and quality of the products produced 2 clusters. Cluster 1<sup>st</sup> consists of 11 small-scale members and cluster 2<sup>nd</sup> consists of 14 micro business scale. Development strategy of cluster 1<sup>st</sup> by increasing innovation on product features and cluster 2<sup>nd</sup> through increased access to capital. The institutions consist of several parties involved including core industries, supporting industries, suppliers, supporting institutions and buyers. The success of the development of the gadung chips industry cluster is highly dependent on inter-institutional cooperation relationships.
Highlights
The research objective was to determine the cluster development strategy based on product performance and quality and analyze the elements in the institutional cluster of gadung chips in Tulungagung Regency
Cluster 1st consists of 11 small-scale members and cluster 2nd consists of 14 micro business scale
The institutions consist of several parties involved including core industries, supporting industries, suppliers, supporting institutions and buyers
Summary
The Development Strategy for Cluster Gadung Chips SME’s in Tulungagung Regency, East Java. Abstrak Tujuan penelitian adalah menentukan strategi pengembangan klaster berdasarkan kinerja dan kualitas produk serta menganalisis elemen dalam kelembagaan klaster industri keripik gadung di Kabupaten Tulungagung. Produk unggulan keripik gadung di Kabupaten Tulungagung saat ini sedang dikembangkan terkait dengan upaya pemerintah dalam meningkatkan ekonomi daerah melalui penerapan konsep One Village One Product (OVOP). Sentra industri keripik gadung di Kecamatan Kalidawir yang masih aktif produksi sejumlah 25 UKM. Permasalahan yang dihadapi UKM dalam mengembangkan usaha yaitu kelembagaan masih cenderung individu sehingga minimnya komunikasi dan kerjasama antar UKM, kurangnya kerjasama dengan Pemerintah, kegiatan pemasaran dan teknologi yang terbatas serta rendahnya kualitas produk. Hasil penelitian menunjukkan bahwa pengelompokkan UKM keripik gadung berdasarkan kinerja dan kualitas produk menghasilkan 2 klaster. Keberhasilan pengembangan klaster industri keripik gadung sangat bergantung kepada hubungan kerjasama antar kelembagaan
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