AGGLOMERATION FOR SMALL AND MEDIUM FOOD ENTERPRISES PERFORMANCE MEASUREMENT

ABSTRACT: Geographic  proximity  to  similar  enterprises  has  become  one  of  SMEs  strategy  in  order  to enhance  their  market.  The  proximity  is  usually  called  agglomeration  or  cluster  industry.  Hence,  the  aim  of this  paper  is  to  measure  performance  of  SMEs  agglomeration.  Performance  measurement  framework  is designed  using  BSC  with  four  perspective  of  measurement,  thus  are  social,  environment,  financial,  and internalbusiness processes. The assessment is executed using AHP which is presented based on the designed BSC  framework.  The  measure  is  applied  to  an  area  in  Malang  city  named  Sanan  which  consist  of  SMEs produce and sell product relate to Keripik Tempe. The study reveals that agglomeration is success to increase all  the  cluster  performance.  The  cluster  performance  is  good  with  75,70%  achievement  of  their  key performance  indicator.  Based  on  each  perspective,  the  best  performance  achieve  by  social  aspect  that  is 78,07% of the target, and the lowest one is economic aspect with 70,42% achievement.  
Keywords: Agglomeration,  Small  and  Medium Enterprises,  Performance  Measurement,  Balance  Scorecard, AHP
Author: Agustina Eunike
Journal Code: jptindustrigg150002

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