STRATEGY FORMULATION FOR DEVELOPING BATIK TULIS

Indah Eko Suryani,Lukytawati Anggraeni,Ujang Suryadi

doi:10.17358/ijbe.1.1.23

Indah Eko Suryani, Lukytawati Anggraeni + Show 1 more

Open Access

https://doi.org/10.17358/ijbe.1.1.23

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Abstract

Investment decisions under risk may lead investors to behave irrationally in managing their portfolio investments. This study aims to examine the behavior of mutual fund investors in making investment decisions during the mutual fund market crisis in Indonesia in 2005. Specifically, this study examines the effect of investment motives and investment benefits on mutual fund investment performance by considering the fund redemption motives during a mutual fund crisis 2005. This study also controls the effect of different types of investors on empirical models. This study used primary data with a sample of 96 mutual fund investors, of which 46 are investors who have invested in a period of mutual fund crises. This study adopted a factor analysis technique to reduce the number of variables and minimize multicollinearity between independent variables. Furthermore, t-test in multiple regression analysis is used to test the research hypothesis. The results showed that the influence of investment motives and investment benefits on mutual fund investment performance is sensitive to different types of investors. Investors who also invest directly in the capital market seem more sophisticated in managing their portfolios than investors who only invest in the mutual fund market. Investors make redemption of funds in a period of mutual fund crisis caused by misleading factors rather than panic factors. This study found no signs of trauma from investors after experiencing huge investment losses due to the mutual fund crisis in 2005.

Highlights

Batik has become part of creative industries in Indonesia, and recently, the business sector of creative industries has comparatively and competitively been able to exploit natural resources or potential areas in Indonesia
Based on the objectives of this study, it can be concluded that the strategic factor becoming the highest relative importance is the appropriate method of promotion i.e. by actively participating in exhibitions of local excellence products
The strategic factor that becomes a chance of the highest relative importance is the governmental "Go Green" program

Summary

Introduction

Batik has become part of creative industries in Indonesia, and recently, the business sector of creative industries has comparatively and competitively been able to exploit natural resources or potential areas in Indonesia. The coordination among the Small and Medium Enterprises (SMEs), local authorities, and related agencies have not been integrated so that the promotion activity of Jember Batik out of the area has not been maximized. This Jember Batik has the characteristics of tobacco leaf, cocoa, dragon fruit, bamboo, butterfly, bird, and musical instrument patterns. As one of the Small and Medium Enterprises (SMEs), the House has a strategic role in national economic development, contributes to the economic growth and employment, and plays a significant role in improving the image of Jember Batik from the local level to the national level

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