Abstract

Flexible packaging is the most widely consumed packaging material in the Indonesian packaging industry, estimated to reach 43.8% by 2024. This research aims to present a conceptual framework and understanding for MSME printing companies in Jabodetabek to achieve competitive advantage through clustering using limited assets capacity, intellectual capital, and innovative capabilities based on a review of relevant literature and integrated through existing theory. The analysis results are based on 32 questionnaires collected from MSME printing companies in Jabodetabek. This research was tested using Structural Equation Modeling (SEM) to test the conceptual framework empirically. The research results show that capacity-constrained assets have a direct effect on clustering and do not affect competitive advantage but indirectly affect competitive advantage mediated by clustering. Intellectual capital does not directly influence competitive advantage and clustering, but indirectly influences competitive advantage mediated by clustering. Innovative capability has a direct effect on competitive advantage and clustering but indirectly has no effect on competitive advantage mediated by clustering. Clustering directly affects competitive advantage. Therefore, with the emergence of many new printing machines, ease of interaction with printers receiving print processing services, and the high level of utilization of business services from the internet, clustering can be implemented so that MSME printing companies in Jabodetabek can achieve competitive profits.

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