CO-OPETITION TO PROMOTE GROWTH OF BATIK SMALL AND MEDIUM ENTERPRISES
Abstract
Co-opetition is cooperation and also the competition between businesses in the same industry or in other words between competitors. The phenomenon of co-opetition, which is also called ‘sleeping with the enemy’, is becoming increasingly important with the wider of global competition. The purpose of research presented in this paper is to analyze the co-opetition strategy among small and medium industries. This research was conducted in the form of case studies of small and medium batik industries in the region of Central Java, Indonesia. The right co-opetition strategy would promote growth and strengthen the sustainability of Central Java batik SMEs to face global competition.The research approach applied is action research. The location of this research is in six districts in Central Java, namely Banyumas, Cilacap, Purbalingga, Banjarnegara, Kebumen and Wonosobo. In those six districts, there are batik SMEs that have the potential to grow rapidly. The results of this study indicate that batik SMEs in the region of Central Java agreed to collaborate in the form of the Central Java Batik Society 'DjamurDwipa'. The batik SME entrepreneurs in Central Java realize that they are partners in the Society and they are also competitors engaged in the same industry. For small and medium scale entrepreneurs, their collaboration is expected to increase their capability, create and capture value, get the benefit of networking. The Central Java Batik Society 'DjamurDwipa' in this study becomes one of the case models of co-opetition among small and medium industries. Review of the co-opetition among small and medium industries in this study indicate that the competitors do not always have a negative impact. Collaboration with competitors, namely co-opetition, could be able to create a synergy that can encourage the growth of small and medium industries.
Keywords: Co-opetition; Colaboration; Competitor; Batik; Small Medium Enterprises.
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