Abstract
The small wood furniture industry in Southeast Sulawesi Province made a very small contribution to the Gross Regional Domestic Product (GRDP) in 2013-2017, less than 1.00 percent. Where in 2013 amounted to 0.55 percent, in 2014 amounted to 0.49 percent, in 2015 amounted to 0.47 percent, in 2016 amounted to 0.49 percent and in 2017 the contribution of small wood furniture industries to GRDP was 0.48 percent (Source: BPS Sulawesi Tenggara, 2018). The phenomenon of the low contribution of small wood furniture industries to Southeast Sulawesi's GRDP is: (1) The low managerial ability of company owners, (2) The industrial environment in small wood furniture industries is very dynamic when viewed from the strengths of the industry and the low ability of the company. This research aims to measure and analyze the factors causing the teak furniture industry to not develop. Besides that is to produce a model of teak furniture industry development that can create a competitive advantage. The research sample of 143 businessmen teak furniture. Data analysis techniques used are (1) qualitative descriptive analysis through in-depth interviews to get information on the factors that cause the development of furniture-making industry in Southeast Sulawesi Province, (2) Partial Least Square analysis, reinforced by SWOT analysis to obtain information about industrial development models that have a competitive advantage. Results of the research concluded that (1). Factors causing the teak furniture industry that is unable to develop are due to low ability: (a) making business plans, (b) establishing business relationships, (c) the existence of suppliers bargaining power, (d) Threat of substitute products, (e) profit growth which is not optimal yet. (2) The right model for developing the teak furniture industry that can create a competitive advantage is to use the "LIMAPEN" model and implement an aggressive growth strategy. Keywords: industrial development model, teak furniture DOI: 10.7176/EJBM/13-2-04 Publication date: January 31 st 2021
Highlights
Small business development has limitations in the ability or resources of companies that can lead to competitive advantage so that it becomes an obstacle in facing competition in the business sector
In the Province of Southeast Sulawesi, the slow growth of the industrial sector is due to the wealth of natural resources as an economic potential and the source of raw materials for the industrial sector cannot be utilized optimally
Small industrial wood furniture in Provincial Southeast Sulawesi contributed very little to the Gross Regional Domestic Product (GRDP) in the year 2013-2017, less than 1,00 percent
Summary
Small business development has limitations in the ability or resources of companies that can lead to competitive advantage so that it becomes an obstacle in facing competition in the business sector. Small industrial wood furniture in Provincial Southeast Sulawesi contributed very little to the Gross Regional Domestic Product (GRDP) in the year 2013-2017, less than 1,00 percent. Where in 2013 by 0.55 percent, year 2014 0,49 percent, in 201 5 by 0.47 percent, year 2016 0,49 percent and 201 7 k contribute small industry Furniture wood to GDP by 0.48 percent (Source: BPS Sulawesi Tenggara, 2018). Based on the results of the study (2017) the factors causing the low contribution of small wood furniture industries to the Southeast Sulawesi GRDP are; 1. (c) Management skills of company owners are generally low when viewed from the aspect of business development decision making, establishing business relationships with suppliers of raw materials, banks, associations, and customers. The industrial environment in small wood furniture industries is very dynamic when viewed from the strengths of the industry; such as the strength of raw material suppliers, which is marked by the large number of teak logs traded between islands, changes in consumer tastes very quickly, the threat of large companies as newcomers offering furniture products with high quality and design, and the threat of substitute products or furniture products other than wood teak, such as rattan furniture, plastic, aluminum, and other materials
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