In the long term, batik SMEs to compete in the local and global markets can not only rely on production capabilities rooted in local sources of uniqueness, but must have efficiency of economies scale for resource access and innovation. In a competitive environment, entrepreneurs in the batik industry have an important role to improve the efficiency. This study analyzed the role of entrepreneurs in the economic efficiency. This study applies production model to describe the entrepreneurs role on economic efficiency. The study was conducted by interviews to 100 Batik SMEs managers-owners in the Batik Centre in Solo, Pekalongan and Rembang. The entrepreneurs role in innovation in term of product innovation, marketing innovation, and business alliances (cooperatives). Data analysis was performed using Stochastic Frontier and Deterministic Regression Analysis. The empirical results of the technical inefficiency effects model suggest that the entrepreneurs role in product innovation, marketing innovation and business alliances are important factors affecting economic efficiency of batik SMEs. The role of entrepreneurship in marketing innovation has the highest elasticity of the production and sales of batik, and then followed by the role of entrepreneurs in new product innovation and business alliances.

Purpose-The aim of this study is to fi nd out and to analyze the capacity for developing small and medium-sized enterprises (SMEs) of batik in Central Java, Indonesia. Batik is a traditional hand-crafted dye-resist textile, rich in intangible cultural values that has been passed down for generations. Batik refers to either a technique of wax-resist dyeing applied to whole cloth or cloth made using this technique originating from Indonesia. Design/Methodology/Approach-The primary data was collected by interview method with one hundred Sažetak Svrha-Cilj je ovog istraživanja otkriti i analizirati kapacitete za razvoj malih i srednjih poduzeća za proizvodnju batika u središnjoj Javi u Indoneziji. Batik je tradicionalna ručno izrađena, obojana i otporna tkanina bogata neopipljivim kulturnim vrijednostima koje se prenose s generacije na generaciju. To je tehnika bojanja tkanine uz primjenu voska. Tkanina izrađena korištenjem ove tehnike potječe iz Indonezije. Metodološki pristup-Primarni podaci prikupljeni su intervjuiranjem stotinu ispitanika, poduzetnika malih

Sources of income of farmers not only from the agricultural sector, but farmers often also work in other sectors such as in the non

Dynamically changing environment gives challenges the company to always be responsive to change. One of the challenges facing the company is the change in the external environment that require competencies to achieve organizational effectiveness. The object of this study is to analyze the factors that influence the innovative capacity of company, then the next influence on company performance. The study was conducted by taking the data through interviews with 150 small business in the manufacturing sector of Semarang Regency. The sampling technique is done through stratified sampling (Multi-Stage Sampling) with the following steps:(1) The first stage by taking samples of the area. (2) The second stage by taking samples of the small business in manufacturing sector based on business location listed on Department of Trade and Industry in the Semarang Regency. A technique of data analysis in this study was conducted by Structural Equation Modeling (SEM). The results of this study generally found that characteristics factors of manager as the business owner, organizational and external environment has a positive influence on the innovative capacity of small entrepreneurship. The results of this study found that a management role of business owners have a dominant influence on the achievement of innovation capacity. Moreover, this study also found that the capacity of innovation in small entrepreneurship in the manufacturing industry in Semarang Regency is able to improve the achievement of business performance.   Perubahan lingkungan yang dinamis memberikan tantangan bagi perusahaan untuk selalu responsive terhadap perubahan. Salah satu tantangan yang dihadapi perusahaan adalah perubahan lingkungan eksternal yang membutuhkan kompetensi untuk mencapai efektivitas organisasi. Penelitian ini bertujuan menganalisis faktor-faktor yang mempengaruhi kapasitas inovasi perusahaan, dan pengaruhnya terhadap kinerja perusahaan. Penelitian dilakukan dengan memberikan angket terhadap 150 usaha kecil di sektor industri pengolahan. Pengambilan sampel dilakukan melalui Multi Stage Sampling dengan tahapan sebagai berikut: (1). Tahap pertama pengambilan sampel berdasarkan wilayah dan (2). Tahap ke dua pengambilan sampel berdasarkan lokasi usaha. Wirausaha yang menjadi responden adalah yang terdaftar di Dinas Perdagangan dan Perindustrian Kabupaten Semarang. Teknik analisis data dalam penelitian ini menggunakan Structural Equation Modelling(SEM). Hasil penelitian secara umum menemukan bahwa faktor karakteristik manajer-pemilik usaha, karakteristik organisasi dan lingkungan eksternal berpengaruh positif terhadap kapasitas inovasi pada usaha kecil. Hasil penelitian ini berhasil membuktikan bahwa peranan manajemen pemilik usaha menjadi faktor terbesar (dominan) yang mempengaruhi pencapaian kapasitas inovasi. Selain itu, penelitian ini juga membuktikan bahwa kapasitas inovasi pada usaha kecil akan mampu meningkatkan pencapaian kinerja usaha.