Institutional Factors: Challenges For Coconut Sugar Small Enterprises Survival
DOI:
https://doi.org/10.30595/jesh.v3i1.326Keywords:
Institutional, Entrepreneur, Small Enterprise, Coconut Sugar, CompetitionAbstract
Small enterprises often face various obstacles in developing and growing their businesses. Some of which are related to institutional factors. The aim of this research is to analyze institutional factorsmanagerial and technical skills and social capitalson coconut sugar small enterprise in Purbalingga. It used primary data that was collected from respondentsentrepreneurs of coconut sugar. The data collected was analyzed with competitive advantage approach by Porterthe five competitive forces modelto explain those factors. The model consists of five competitive forces: entry of competitors, threat of substitutes, bargaining power of buyers, bargaining power of suppliers, and rivalry among the existing players. The result shows that: 1) Coconut sugar enterprises have strong institutional factors, 2) Entrepreneurs can easily build this business with slight threat, 3) Coconut sap raw material is quite available but the quantity is uncertain, 4) The bargaining power of buyers is quite strong, especially in supressing product price, 5) Bargaining power of suppliers is also strong that is proven by the ease of marketing because of demand stability, 6) Competition among entrepreneurs is so high. They say that their competitors have more capitals but they have great optimism to win the competition. Their best strategy is to maintain quality, increase quantity, and also strengthen channels and networks.
References
Agyapong, D. (2010). Micro, small and medium enterprises’ activities, income level and poverty reduction in Ghana – A synthesis of related literature. International Journal of Business and Management, 5(12).
Amri, A. (2020). The impact of COVID-19 on MSMEs in Indonesia. Journal of Brand, 2(1), 147–153.
Ardic, O. P., Mylenko, N., & Saltane, V. (2011). Small and medium enterprises: A cross-country analysis with a new data set (Policy Research Working Paper No. 5538). The World Bank, Consultative Group to Assist the Poor.
Christiansen, B. (2020). Sustainability: A comprehensive literature. In B. Christiansen (Ed.), IGI Global Supply Chain Management (1st ed.). IGI Global Book Series Advance. https://www.researchgate.net/publication/292906714_Sustainability_A_Comprehensive_Literature
Cooper, D. R. (2011). Business research methods (11th ed.). McGraw Hill International Editions.
Department of Agriculture and Forestry of Central Java. (2019). Coconut sugar production in the Barlingmascakeb area in 2019.
Dong, Y., Mo, X., Hu, Y., Qi, X., Jiang, F., Jiang, Z., et al. (2020). Epidemiology of COVID-19 among children in China. Pediatrics, 145(6), 1–12. https://doi.org/10.1542/peds.2020-0702
FAO. (2019). Developing value chains for sustainable coconut sugar production in Asia. Food and Agriculture Organization of the United Nations.
Future Market Insights. (2024). Coconut Sugar Market Outlook 2024 to 2034. Retrieved from https://www.futuremarketinsights.com/reports/coconut-sugar-market
Grand View Research. (2023). Coconut Sugar Market Size, Share & Trends Analysis Report by Form, by Application, by Region, and Segment Forecasts, 2023 – 2030. Retrieved from https://www.grandviewresearch.com/industry-analysis/coconut-sugar-market
Gujarati, D. N., & Porter, D. C. (2009). Basic econometrics (5th ed.). McGraw Hill Inc.
Hadiwardoyo, W. (2020). National economic losses due to the COVID-19 pandemic. Baskara: Journal of Business and Entrepreneurship, 2(2), 83–92. https://doi.org/10.24853/baskara.2.2.83-92
Iswahyudi, H. (2016). Back to oil: Indonesia’s economic growth after the Asian financial crisis. Economic Journal of Emerging Markets, 8(1), 25–44. https://doi.org/10.20885/ejem.vol8.iss1.art3
Kirigia, J. M., & Muthuri, R. N. D. K. (2020). The fiscal value of human lives lost from coronavirus disease (COVID-19) in China. BMC Research Notes, 13(1), 1–5. https://doi.org/10.1186/s13104-020-05044-y
Martin, S. (1994). Industrial economics, economic analysis and public policy (2nd ed.). Macmillan Publishing Company.
McGill University. (2020). What is sustainability? https://www.mcgill.ca/sustainability/files/sustainability/what-is-sustainability.pdf
Nurhadi, T., Prasetyo, R., & Dewi, S. (2022). Technology adoption among traditional coconut sugar producers in Central Java. Journal of Agribusiness and Rural Development, 14(1), 55–64.
Okun, D. T., et al. (2010). Small and medium-sized enterprises: Characteristics and performance (Investigation No. 332-510). U.S. International Trade Commission, USITC Publication 4189.
Pakpahan, A. K. (2020). COVID-19 and its implications for micro, small and medium enterprises. Journal of International Relations, 20(April), 1–6.
Porter, M. E. (1979). How competitive forces shape strategy. Harvard Business Review, March–April.
Putra, A. (2016). The role of MSMEs in development and community welfare in Blora Regency. Journal of Sociological Analysis, 5(2), 40–52.
Ramadhan, A., Mulyana, A., & Sari, R. (2023). Strengthening coconut sugar branding for export: A case study of village-based enterprises. International Journal of Rural Entrepreneurship, 5(2), 88–97.
Research and Markets. (2023). Coconut Sugar Global Market Report 2023. Retrieved from https://www.researchandmarkets.com/reports/5819925/coconut-sugar-global-market-report
Santoso, B., Handayani, W., & Putra, D. (2020). Coconut sugar production: Opportunities and sustainability in Indonesian rural areas. Journal of Tropical Agriculture, 18(3), 112–120.
Scherer, F. M. (1996). Industry structure, strategy, and public policy. HarperCollins College Publishers.
Setyowati, N., & Supriyanto, A. (2021). The role of coconut sugar industry in supporting rural livelihoods in Yogyakarta. Jurnal Ekonomi dan Pembangunan, 22(1), 40–50.
Siregar, M., Hidayat, D., & Lubis, F. (2019). Socioeconomic impacts of traditional coconut sugar industry in North Sumatra. Indonesian Journal of Rural Studies, 7(2), 101–110.
Tairas, D. R. (2020). COVID-19 pandemic and MSMEs: Impact and mitigation. Indonesian Journal of Economics, 9(1), 67–80.
UNCTAD. (2021). Coconut sugar: Market trends and export potential. United Nations Conference on Trade and Development.
Wahyudi, R., & Hartono, S. (2020). Market challenges and price fluctuation in traditional coconut sugar industry. Jurnal Manajemen Agribisnis, 8(1), 23–35.
Walundungo, G. (2014). Using multidimensional scaling analysis to identify similarities among restaurants in Manado Town Square based on customer characteristics. Journal of Applied Mathematics, 3(1), 31. https://doi.org/10.35799/dc.3.1.2014.3806
Winarto, A., & Kusumawati, L. (2020). Environmental impacts of traditional sap harvesting in coconut plantations. Jurnal Kehutanan Tropika, 12(4), 75–82.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Agus Arifin , Rakhmat Priyono, Goro Binardjo
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Authors who publish with this journal agree to the following terms:
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
Journal of Social, Economics, and Humanities is licensed under a Creative Commons Attribution 4.0 International License.
