Establish and Develop Regional Core Competence on the Basis of Superior Product of Small Scale Industries: Evidence From Makassar City, Indonesia

Abstract

The purpose of this study is to to identify and establish regional core competence on the basis of superior products of small scale industries (SSIs) in Makassar City, Indonesia and formulate strategy to develop the competencies. Key informant of two groups of samples (expert and entrepreneurs of SSIs) selected by purposive sampling method. Data and information collected using interview, obevation, documentation, and two series forum group discussion (fgd). A five-step analysis is employed in this study, namely : matriks ranking, Tree Diagram and Expected Value (TEV), value chain, regional core competence, and SWOT.\ud Analysis by TEV and then validated through fgd, concluded that core product of Makassar City is marquisa juice-sirup product. Then, analysis the value chain activity in the core product suggest that core competence is distinctive aroma and flavor and its medical content. Therefore, the core competence are concluded in fgd as the regional core competences of Makassar City due to the core competence is generated from the collective learning of farmers and entrepreneurs for a long time so difficult imitated by other regions, having potential access to various market, can be developed to new products or services, and giving social economy benefit.\ud The Strategy to develop industrial core competence is designed by SWOT method. The priorities of selected strategy are strengthening entrepreneurial capital, building effective supply chain coloboration, and developing network cooperation with universities and government