IDENTIFIKASI KAPABILITAS INOVASI DAN STRATEGI BERSAING SENTRA USAHA KECIL LOGAM WINONGAN DI KABUPATEN PASURUAN

Abstract

This research was aimed to identify innovation capability and competitive strategy of small metal businesses in the District of Winongan, Pasuruan Regency. The type of research used was descriptive with qualitative paradigm. Based on the analysis using the indicators of innovation capability and generic competitive strategy, it was found that every SME had its own ways and generic competitive strategy in positioning the products in market competition, minimizing the costs of labor and raw materials, optimizing the product quality, as well as maintaining relations with consumers. Other findings showed that they had a product focus which was also supported by tacit knowledge and explicit knowledge to face various forms of competition and uncertainty in the market, so they could compete with similar businesses in different regions in and out of Pasuruan.