Title : INDUSTRIALIZATION POLICY AND ITS INFLUENCE ON CHANGES IN THE SCALE OF SME BUSINESSES AND LABOR ABSORPTION IN THE SMALL APPAREL INDUSTRIAL SUB-SEctor IN EAST JAVA PROVINCE
Author : Firdaus M. Sitohang
Universitas Airlangga
Item Type : Thesis (Dissertation)
Abstract
This research aims to examine industrialization policies and their influence on changes in business scale and labor absorption in the small apparel industry sub-sector in East Java Province. The data collection technique uses non-probability sampling in the form of complete enumeration. Primary data was collected using a questionnaire distributed to 157 respondents, namely small apparel industry entrepreneurs in East Java Province. The inferential statistical method used to analyze the data is Partial Least Square (PLS). The research results show that; 1) Technological Capability has no significant effect on Changes in Business Scale in the Small Apparel Industry Sub-Sector in East Java Province. Technological capabilities which are reflected by the efficiency of the production process are not able to encourage changes in business scale which are reflected by the increase in the number of customers served, thus sophisticated technological capabilities do not necessarily guarantee changes in the business scale of the Apparel SME sub-sector in East Java Province. 2) Innovation Capability has a significant effect on Changes in Business Scale in the Small Apparel Industry sub-sector in East Java Province. The innovation capability of employees and entrepreneurs which is conceptually based on a commitment to development guarantees changes in the business scale of the Apparel IKM sub-sector in East Java Province. 3) Competency of Industrial Workers has a significant effect on Changes in Business Scale in the Small Apparel Industry sub-sector in East Java Province. The competency of the industrial workforce, which is reflected primarily by work operations, is able to drive changes in business scale, which is reflected by the increase in the number of customers served. This shows that, the higher the quality of competence of an employee and entrepreneur, the more it will encourage changes in business scale. 4) Changes in business scale have a significant effect on the absorption of industrial workers in the small apparel industry sub-sector in East Java Province. Changes in Business Scale, which are reflected primarily by the increase in the number of customers served, are able to increase employment. Thus, the increasing number of customers automatically requires more labor to serve customer requests so that the business scale increases. 5) Technological capabilities have a significant effect on the absorption of industrial workers in the Small Apparel Industry sub-sector in East Java Province. Technological capabilities reflected by the efficiency of the production process are able to increase labor absorption. Thus, even though a business has sophisticated technological capabilities, it still requires additional labor because all machines and production tools are driven by labor. This is what has triggered an increase in labor absorption in the apparel SME sub-sector in East Java Province. 6) Innovation capability has a significant effect on the absorption of SME industrial workers in the Small Apparel Industry sub-sector in East Java Province. Innovation capability, which is reflected primarily by commitment to development, is able to increase workforce absorption. Thus, the innovative ability of employees and entrepreneurs based on a commitment to always wanting to develop really guarantees employment. This is due to developments carried out in various aspects, especially quality and quantity aspects including workforce. 7) Competency of Industrial Workers has a significant effect on the Absorption of IKM Workers in the Small Apparel Industry sub-sector in East Java Province. Labor competency, which is reflected primarily by work operations, is able to increase labor absorption. This shows that the more an employee has competence in the form of knowledge, insight and quality skills, the more qualified new workers will automatically be. This increases labor absorption in the Apparel IKM sub-sector in East Java Province.
Keywords: Technological Capabilities, Innovation Capabilities, Industrial Workforce Competencies, Business Scale Changes, Labor Absorption
