skip to main content

Determinants of regional entrepreneurship development: empirical study of batik clusters in Indonesia

1Universitas Kristen Satya Wacana, Indonesia

2Universitas Pancasakti Tegal, Indonesia

3Universitas Widya Dharma, Indonesia

4 President University, Indonesia

View all affiliations
Open Access Copyright 2019 Diponegoro International Journal of Business under http://creativecommons.org/licenses/by-sa/4.0.

Citation Format:
Abstract

This study aims to identify the factors that trigger and inhibit regional entrepreneurship and the development of regional entrepreneurship networks in terms of the economic environment, cultural environment, regulatory environment, business environment, and support environment. Data analysis techniques used descriptive statistics, where data were obtained from distributing questionnaires to 100 batik entrepreneurs in the Tegal batik cluster and the Klaten batik cluster. The results of this study indicate the factors that triggered regional entrepreneurship in the Tegal and Klaten batik clusters, including the desire to invest, the desire to be creative, the desire to have autonomy, the desire to have status, the desire to have wealth, and market opportunities. The factors that become obstacles to regional entrepreneurship in the Batik Tegal and Klaten Clusters are fierce of competition, risk and cost. The development of regional networks of entrepreneurship in the Tegal batik cluster is supported by the economic environment, regulatory environment, and business environment, while in the Klaten batik cluster, it is supported by the cultural environment, business environment, and support environment.

 

 

Fulltext View|Download
Keywords: entrepreneurship; regional entrepreneurship; networks resource based view

Article Metrics:

  1. Alvarez, S.A. & Busenitz, L.W. (2001). The Entrepreneurship of Resource-Based Theory. Journal of Management 27, 755-775
  2. Amorós, J.E., Etchebarne. S., & Felzensztein, C. (2012). International Entrepreneurship in Latin America: Development Challenges. Esic Market Economics and Business Journal, 43(3), 497-512
  3. Anderson, G. (1994). Industry Clustering for Economic Development. Economic Development Review, 12(2), 26-32
  4. Atelijevic, J. (2009). Tourism Entrepreneurship and Regional Development: Example From New Zealand. International Journal of Entrepreneurial Behaviour & Research, 15(3), 282-308
  5. Audretsch, D. & Thurik, A.R. (2001). Linking Entrepreneurship to Growth. OECD
  6. Audretsch, D., & Keilbach, M. (2005). Entrepreneurship Capital and Regional Growth. The Annals of Regional Science 39, 457- 469
  7. Baptista, R. (1998). Clusters, Innovation, and Growth: A Survey of The Literature. In: Swann, P., Prevezer, M., & Stout, D. (eds): The Dynamics of Industrial Clustering: International Comparisons in Computing and Biotechnology. Oxford, UK: University Press
  8. Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120
  9. Barney, J., Wright, M., & Ketchen, D.J. (2001). The Resource-Based View of The Firm: Ten Years After 1991. Journal of Management, 27(6), 625-641
  10. Behe, B.K., Dennis, J.H., Hall, C.R., Hodges, A.W., & Brumfield, R.G. (2008). Regional Marketing Practices in U.S. Nursery Production. Hort Science, 43(7), 2070-2075
  11. Boswell, J. (1973). The Rise and Fall of Small Firms. London: Allen and Irwin
  12. Botchway, Q., Goodall, G., Noon, D., & Lemon, M. (2002). Emergence-based Local Economic Development Model: A Way Forward in Responding to Turbulent Operating Environments. Entrepreneurship and Regional Development, 14(2), 155-174
  13. Bull, I. & Winter, F. (1991). Community Differences in Business Births and Business Growths. Journal of Business Venturing 6, 29-43
  14. Brush, C.G., Greene, P.G., Hart, M.M., & Edelman, L.F. (1997). Resource Configurations Over the Life Cycle of Ventures. In: Reynolds, P.D., Bygrave, W.D., Carter, N.M., Davidsson, P., Gartner, W.B., Mason, C.M., & McDougall, P.P. (eds): Frontiers of Entrepreneurship Research. Wellesley, MA: Center for Entrepreneurial Studies, Babson College
  15. Chandler, G. & Lyon, D. (2001). Issues of Research Design and Construct Measurement in Entrepreneurship Research: The Past Decade. Entrepreneurship Theory and Practice, 25(4), 101-113
  16. Cui, G. & Liu, Q. (2000). Regional Market Segments of China: Opportunities and Barriers in A Big Emerging Market. Journal of Consumer Marketing, 17(1), 55-72
  17. Davidsson, P., Lindmark, L., & Olofsson, C. (1994). New Firm Formation and Regional Development in Sweden. Regional Studies 28, 395-410
  18. Davidsson, P. (1995). Culture, Structure, and Regional Levels of Entrepreneurship. Entrepreneurship & Regional Development: An International Journal, 7(1), 41-62
  19. Davidsson, P. & Wiklund J. (1997). Values, Beliefs and Regional Variations in New Firm Formation Rates. Journal of Economic Psychology 18, 179-199
  20. Dickson, P.H., Solomon, G.T., & Weaver, K.M. (2008). Entrepreneurial Selection and Success: Does Education Matter? J. Small Bus. Enterp. Dev. 15, 239-258
  21. Ghozali, I. (2005). Aplikasi Analisis Multivariate dengan Program IBM SPSS 19. Semarang: Badan Penerbit UNDIP
  22. Gibb, A. (1988). The Enterprise Culture: Threat or Opportunity? Management Decision, 26(4), 5-12
  23. Gibb, A.A. (1987). Education for Enterprise: Training for Small Business Initiation - Some Contrasts. Journal of Small Business and Entrepreneurship, 4(3), 42-47
  24. Greene, P.G., Brush, C.G., & Brown, T.E. (1997). Resources in Small Firms: An Exploratory Study. Journal of Small Business Strategy, 8(2), 25-38
  25. Halvorson-Quevedo, R. (1992). The Growing Potential of Micro-Enterprises. The OECD Observer 173, 7-11
  26. Haug, P. (1995). Formation of Biotechnology Firms in The Greater Seattle Region: An Empirical Investigation of Entrepreneurial, Financial, and Educational Perspectives. Environment and Planning A 27, 249-267
  27. Hayton, J. C., Goerge, G., & Zahra, S. A. (2002). National Culture and Entrepreneurship: A Review of Behavioral Research. Entrepreneurship Theory and Practice, 26(4), 33-52
  28. Howlett, M., Ramesh, M., & Perl, A. (2009). Studying Public Policy: Policy Cycles and Policy Subsystems. Oxford, UK: Oxford University Press
  29. Isaksen, A. (1998). Regionalisation and Regional Clusters as Development Strategies in A Global Economy. Oslo, Norway: STEP Group
  30. Johannisson, B. (1988). Business Formation - A Network Approach. Scandinavian Journal of Management, 4(3), 83-99
  31. Kantis, H., Ishida, M., & Komori, M. (2002). Entrepreneurship in Emerging Economies: The Creation and Development of New Firms in Latin America and East Asia. Washington, DC, USA: Inter-American Development Bank
  32. Keniry, J., Blums, A., Notter, E., Radford, E., & Thomson, S. (2003). Regional Business - A Plan for Action. Canberra: Commonwealth of Australia
  33. Kenney, M. (2001). Regional Clusters, Venture Capital, and Entrepreneurship: What Can The Social Sciences Tell Us about Silicon Valley? University of California, Davis, OECD Workshop Proceedings
  34. Kilkenny, M., Nalbarte, L., & Besser, T. (1999). Reciprocated Community Support and Small Town - Small Business Success. Entrepreneurship and Regional Development, 11(3), 231-246
  35. Krugman, P. (1991). Increasing Returns and Economic Geography. Journal of Political Economy 99, 483-499
  36. Laws, E. (1995). Destination Management: Issues, Analysis and Policies. London: Routledge
  37. Levin, M. (1993). Creating Networks for Rural Economic Development in Norway. Human Relations, 46(2), 193
  38. Liao, J., Welsch, H.P., & Pistrui, D. (2001). Environmental and Individual Determinants of Entrepreneurial Growth: An Empirical Examination. Journal of Entrepreneurship Culture, 9(3), 253-272
  39. Lichtenstein, B.M.B. & Brush, C.G. (2001). How Do ‘Resource Bundles’ Develop and Change in New Ventures? A Dynamic Model and Longitudinal Exploration. Entrepreneurship Theory and Practice, 25(3), 37-58
  40. Mani, S. (2004). Financing of Innovation: A Survey of Various Institutional Mechanisms in Malaysia and Singapore. Asian J. Technol. Innov. 12, 185-208
  41. Mathur, V.K. (1999). Human Capital-Based Strategy for Regional Economic Development. Economic Development Quarterly, 13(3), 203-215
  42. Mazzarol, T. (2003). Regional Entrepreneurship – Developing A Holistic Framework for Stimulating Regional Enterprise. Centre for Entrepreneurial Management and Innovation, Graduate School of Management, University of Western Australia
  43. Mazzarol, T., Volery, T., Doss, D., Thein, V. (1999). Factors Influencing Small Business Start-Ups: A Comparison with Previous Research. International Journal of Entrepreneurial Behaviour & Research, 5(2), 48-63
  44. Mazzarol, T.W. (2002). Developing A Framework for Regional Enterprise and Employment Creation: A Progress Report. Developing Regional Communities, ANZAM Conference, Beechworth, Victoria, Australia, New Zealand Academy of Management
  45. McClelland, D.C. (1961). The Achieving Society. Princeton: Van Nostrand
  46. Morris, M. & Schindehutte, M. (2005). Entrepreneurial Values and The Ethnic Enterprise: An Examination of Six Subcultures. J. Small Bus. Manag. 43, 453-479
  47. Morrison, A. (2000). Entrepreneurship: What Triggers It? International Journal of Entrepreneurial Behaviour & Research, 6(6), 59-71
  48. Nag, R., Hambrick, D.C., & Chen, M.J. (2007). What is Strategic Management, Really? Inductive Derivation of A Consensus Definition of The Field. Strategic Management Journal 28, 935-955
  49. Naipaul, S., Wang, Y., Okumus, F. (2009). Regional Destination Marketing: A Collaborative Approach. Journal of Travel & Tourism Marketing 26, 462-481
  50. Oats, D. (1992). Vision of Angels. Director, 45(11), 34
  51. Ostgaard, T. & Birley, S. (1994). Personal Networks and Firm Competitive Strategy - A Strategic or Coincidental Match? Journal of Business Venturing, 9(4), 281-306
  52. Pastor, L. & Veronesi, P. (2012). Uncertainty about Government Policy and Stock Prices. J. Financ. 67, 1219-1264
  53. Porter, M.E. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. Boston: The Free Press
  54. Porter, M.E. (2000). Location, Competition, and Economic Development: Local Clusters in A Global Economy. Economic Development Quarterly, 14(1), 15-34
  55. Porter, M.E. (2001). Clusters of Innovation: Regional Foundations of U.S. Competitiveness. Washington, DC: Council on Competitiveness
  56. Reynolds, P.D., Camp, S.M., Bygrave, W.D., Autio, E., & Hay, M. (2002). Global Entrepreneurship Monitor Executive Report. Wellesley, MA, USA: Babson College
  57. Romanelli, E. (1989). Organization Birth and Population Variety: A Community Perspective on Origins. In: Cummings, L.L. & Staw, B.M. (eds): Research in Organizational Behavior. Greenwich CT: JAI Press
  58. Schiefloe, P. (1985). Local Social Environments in Cities. In: Levin, M. (eds). Creating Networks for Rural Economic Development in Norway. Human Relations, 46(2), 193-200
  59. Shane, S. (2009). Why Encouraging More People to Become Entrepreneurs is Bad Public Policy? Small Bus. Econ. 33, 141–149
  60. Shapero, A. & Sokol, L. (1982). The Social Dimensions of Entrepreneurship. In: Kent, C. A., Sexton, D. I., & Vesper, K. H. (eds): Encyclopedia of Entrepreneurship. Englewood Cliffs: Prentice-Hall
  61. Shumpeter, J. (1934). The Theory of Economic Development. New York: Harvard University Press
  62. Stam, E. (2015). Entrepreneurial Ecosystems and Regional Policy: A Sympathetic Critique. European Planning Studies, 23(9), 1759-1769
  63. Sternberg, R. (2004). Entrepreneurship Research -The Relevance of The Region and Tasks Facing Economic Geography. Geographische Zeitschrift 92 (Special Issue), 18-38
  64. Useem, J. (1997). Churn, Baby, Churn. The State of Small Business, 25-32
  65. Volery, T., Mazzarol, T., Doss, N., & Thein, V. (1997). Triggers and Barriers Affecting Entrepreneurial Intentionality: The Case of Western Australian Nascente Entrepreneurs. Journal of Enterprising Culture, 5(3), 273-291
  66. Walker, R. & Greenstreet, D. (1990). The Effect of Government Incentives and Assistance on Location and Job Growth in Manufacturing. Regional Studies, 25(1), 13-30
  67. Westhead, P. & Wright, M. (1999). Contributions of Novice, Portfolio and Serial Founders Located in Rural and Urban Areas. Regional Studies, 33(2), 157-173
  68. Wonglimpiyarat, J. (2013). The Role of Equity Financing to Support Entrepreneurship in Asia: The Experience of Singapore and Thailand. Technovation 33, 163-171
  69. Young, R.C. & Francis, J.D. (1989). Who Helps Small Manufacturing Firms Get Started? Rural Development Perspectives, 6(1), 21-25
  70. Yushuf, A. & Schindelhutte, M. (2000). Exploring Entrepreneurship in A Declining Economy. Journal of Developmental Entrepreneurship, 5(1), 41-56
  71. Zhao, H., Seibert, S.E., & Lumpkin, G.T. (2009). The Relationship of Personality to Entrepreneurial Intentions and Performance: A Meta-Analytic Review. Journal of Management, 36(2), 381-404

Last update:

No citation recorded.

Last update:

No citation recorded.