Analysis of Productivity and Comparative-Competitive Advantage of MSMEs in Gorontalo City
Keywords:
MSME Productivity; Comparative Advantage; Competitive Advantage; Gorontalo City; Economic Transformation
Abstract
MSMEs play a strategic role in the local economy, but in Gorontalo City, their productivity and sectoral advantages show a complex dynamic and have not optimally supported the transformation towards a service-based city. This study aims to analyze the productivity and comparative and competitive advantages of MSMEs in Gorontalo City, as well as to map potential sectors for future development. The research uses a mixed-method approach with an explanatory sequential design, where quantitative analysis of productivity data from 2014–2024 and projections for 2025–2030 is conducted using dynamic system modeling with Vensim, as well as regression, exponential smoothing, and ARIMA methods. Sectoral advantage analysis is carried out using the LQShare and LQShift approaches, which are dynamic in nature. The results show that MSME productivity experienced fluctuations and a decline due to the pandemic, but began to recover in 2024 and is projected to increase in an optimistic scenario along with digitalization policies and strengthening the service sector. The LQ analysis identifies the garment and handicraft sectors as progressive, while the metal-electronics sector remains sluggish, and the building materials and food sectors fall under the developing category. The study recommends strengthening local fiscal policies, improving MSME digital literacy, developing an e-commerce ecosystem, and business incubation for the developing and sluggish sectors. These efforts are expected to strengthen MSME productivity sustainably and support the vision of Gorontalo City as a service economy hub in 2025–2029.
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Nahimana, E. (2024). Impact of Knowledge Management Strategies on Innovation Perfor-mance in Small and Medium Enterprises (SMEs) in Rwanda. American Journal of Da-ta Information and Knowledge Management, 5(1), 1-13. https://doi.org/10.47672/ajdikm.2070
Nazry, N. and Mapjabil, J. (2021). The Impact Of Covid-19 Pandemic On Micro & Small Scale Tourism Entrepreneurs: A Literature Review. Bimp-Eaga Journal for Sustainable Tourism Development, 10(1), 84-95. https://doi.org/10.51200/bimpeagajtsd.v10i1.3623
Nuvriasari, A., Suyanto, M., Nor, M., & Azman, A. (2022). The Effect of Market Orientation Towards Small and Medium Enterprises Batik Entrepreneurial Marketing: A Case Study in Indonesia. QAS, 23(188). https://doi.org/10.47750/qas/23.188.16
Octaviana, D. and Andni, R. (2023). The Role of Digital Marketing in Increasing the Income of UMKM Alam Tani Hydrofarm in Kudus. J. Social Science Utilizing Tech, 1(2), 98-104. https://doi.org/10.55849/jssut.v1i2.596
Prasanna, R., Jayasundara, J., Gamage, S., Ekanayake, E., Rajapakshe, P., & Abeyrathne, G. (2019). Sustainability of SMEs in the Competition: A Systemic Review on Technolog-ical Challenges and SME Performance. Journal of Open Innovation Technology Mar-ket and Complexity, 5(4), 100. https://doi.org/10.3390/joitmc5040100
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Puspaningrum, A. (2020). Market Orientation, Competitive Advantage and Marketing Per-formance of Small Medium Enterprises (SMEs). Journal of Economics Business and Accountancy Ventura, 23(1), 19-27. https://doi.org/10.14414/jebav.v23i1.1847
Rizki, R., Gunawan, C., Askiyanto, M., Kusufa, F., Iriani, N., Rifa’i, M., … & Nugroho, A. (2024). Maximizing the Management of Red Onion and Crispy Rice Crackers Micro, Small, and Medium Enterprises (MSMEs) in Purworejo Village, Ngantang Subdistrict, Ma-lang Regency as Efforts to Expand Market Share. JISE, 2(1), 46-52. https://doi.org/10.61105/jise.v2i1.89
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Surya, B., Menne, F., Sabhan, H., Suriani, S., Abubakar, H., & Idris, M. (2021). Economic Growth, Increasing Productivity of SMEs, and Open Innovation. Journal of Open In-novation Technology Market and Complexity, 7(1), 20. https://doi.org/10.3390/joitmc7010020
Tambunan, T. (2011). Development of Micro, Small and Medium Enterprises and Their Constraints: A Story from Indonesia. Gadjah Mada International Journal of Business, 13(1), 21. https://doi.org/10.22146/gamaijb.5492
Taneo, S., Agustina, M., & Noya, S. (2023). The Moderating Influence of Government Policy on The Innovation Capability-Competitiveness Relationship in Food SMES. Journal of Technology Management & Innovation, 18(2), 6-17. https://doi.org/10.4067/s0718-27242023000200006
Umar, A., Adawiah, A., Barkatullah, A., Ifrani, I., Mahyuni, M., Amrin, M., … & Farisi, N. (2022). Government Policies and Regulations, Leadership Style and Employee Per-formance in Increasing Productivity of Indonesia’s Small and Medium Enterprises. Society, 10(1), 182-206. https://doi.org/10.33019/society.v10i1.471
Wasito, W. and Fuji, F. (2023). Penguatan Digital Marketing Untuk Memperluas Pasar Dan Daya Saing Kelompok Wanita Tani Di Desa Sidomulyo Puncu. Al-Umron Jurnal Pengabdian Kepada Masyarakat, 4(2), 87-97. https://doi.org/10.32665/alumron.v4i2.2012
Wati, D., Septianingsih, V., Khoeruddin, W., & Al-Qorni, Z. (2024). Peranan UMKM (Usaha Mikro, Kecil dan Menengah) dalam Meningkatkan Perekonomian Indonesia. jebmak, 3(1), 265-282. https://doi.org/10.61930/jebmak.v3i1.576
Wisnujati, N., Marjuki, M., & Munir, A. (2023). Digital Marketing Strategies of MSMEs in Fac-ing Consumption Trends in the New Year. Jurnal Minfo Polgan, 12(2), 2393-2400. https://doi.org/10.33395/jmp.v12i2.13278
Wong, A. and Kee, D. (2022). Driving Factors of Industry 4.0 Readiness among Manufactur-ing SMEs in Malaysia. Information, 13(12), 552. https://doi.org/10.3390/info13120552
Ali, G., Hilman, H., & Gorondutse, A. (2020). Effect of entrepreneurial orientation, market orientation and total quality management on performance. Benchmarking an Inter-national Journal, 27(4), 1503-1531. https://doi.org/10.1108/bij-08-2019-0391
Aliyah, A. (2022). Peran Usaha Mikro Kecil dan Menengah (UMKM) untuk Meningkatkan Kesejahteraan Masyarakat. Welfare Jurnal Ilmu Ekonomi, 3(1), 64-72. https://doi.org/10.37058/wlfr.v3i1.4719
Alkumairoh, A. and Warsitasari, W. (2022). Pengaruh Modal Usaha, Jam Kerja Dan Lama Usaha Terhadap Pendapatan Usaha Mikro Kecil Menengah Pedagang Pasar Gambar Kecamatan Wonodadi Kabupaten Blitar. Sosebi Jurnal Penelitian Mahasiswa Ilmu Sosial Ekonomi Dan Bisnis Islam, 2(2), 202-219. https://doi.org/10.21274/sosebi.v2i2.6428
Ariprabowo, T. (2023). Membangun Ekonomi Melalui UMKM Bucket Uang Dan Jajan Dengan Potensi Di Era Digital Desa Balonggarut. Dedikasimu Journal of Community Service, 5(1), 15. https://doi.org/10.30587/dedikasimu.v5i1.5254
Aslikhah. (2023). Pentahelix Synergy in Halal Certification of Micro and Small Business Products at the Purwosari MSME Center (SEKAR). Malia (Terakreditasi), 15(1), 70-82. https://doi.org/10.35891/ml.v15i1.4727
Aspiranti, T. and Amaliah, I. (2019). MSME’s Acceleration Strategy Based on Sharia Bank Financial Performance in Indonesia. Mimbar Jurnal Sosial Dan Pembangunan, 35(2), 277-285. https://doi.org/10.29313/mimbar.v35i2.4517
Beraha, I., Đuričin, S., & Lazarević, M. (2023). The Impact Of Clustering On Competitiveness And Business Performance OF SMEs: Evidence From The Serbian Automotive Indus-try. Science International Journal, 2(4), 147-152. https://doi.org/10.35120/sciencej0204147b
Dhamayantie, E. and Fauzan, R. (2017). Penguatan Karakteristik Dan Kompetensi Kewirausahaan Untuk Meningkatkan Kinerja UMKM. Matrik Jurnal Manajemen Strategi Bisnis Dan Kewirausahaan. https://doi.org/10.24843/matrik:jmbk.2017.v11.i01.p07
Hanggraeni, D., Ślusarczyk, B., Sulung, L., & Subroto, A. (2019). The Impact of Internal, Ex-ternal and Enterprise Risk Management on the Performance of Micro, Small and Medium Enterprises. Sustainability, 11(7), 2172. https://doi.org/10.3390/su11072172
Hidayati, R. and Rachman, N. (2021). Indonesian Government Policy And Smes Business Strategy During The Covid-19 Pandemic. Niagawan, 10(1), 1. https://doi.org/10.24114/niaga.v10i1.21813
Hurdawaty, R. and Tukiran, M. (2024). Strategies to Increase the Competitiveness of Micro, Small and Medium Enterprises (MSMEs): A Narrative Literature Review. South Asian Journal of Social Studies and Economics, 21(1), 112-125. https://doi.org/10.9734/sajsse/2024/v21i1768
Kara, M. (2013). Konstribusi Pembiayaan Perbankan Syariah terhadap Pengembangan Usaha Mikro, Kecil, dan Menengah. Ahkam Jurnal Ilmu Syariah, 13(2). https://doi.org/10.15408/ajis.v13i2.944
Kerekes, V. and Felföldi, J. (2020). Supply chain management practices for SMEs. Applied Studies in Agribusiness and Commerce, 14(3-4), 89-96. https://doi.org/10.19041/apstract/2020/2-3/10
Kii, M. and Sehendri, H. (2023). Pengaruh Pasca Pandemi Covid-19, Literasi Keuangan, Karakteristik Wirausaha terhadap Pendapatan UMKM di Kecamatan Blimbing, Kota Malang. JIER, 1(1), 12-27. https://doi.org/10.61105/jier.v1i1.28
Lutfi, M., Buntuang, P., Kornelius, Y., & Hasanuddin, B. (2020). The impact of social distanc-ing policy on small and medium-sized enterprises (SMEs) in Indonesia. Problems and Perspectives in Management, 18(3), 492-503. https://doi.org/10.21511/ppm.18(3).2020.40
Manuain, D., Tuati, N., & Usman, H. (2021). Strategy for Acceleration of Regional Develop-ment to Reduce Unemployment and Proverty in the District of Timor Tengah Se-latan-NTT.. https://doi.org/10.2991/assehr.k.210424.080
Nahimana, E. (2024). Impact of Knowledge Management Strategies on Innovation Perfor-mance in Small and Medium Enterprises (SMEs) in Rwanda. American Journal of Da-ta Information and Knowledge Management, 5(1), 1-13. https://doi.org/10.47672/ajdikm.2070
Nazry, N. and Mapjabil, J. (2021). The Impact Of Covid-19 Pandemic On Micro & Small Scale Tourism Entrepreneurs: A Literature Review. Bimp-Eaga Journal for Sustainable Tourism Development, 10(1), 84-95. https://doi.org/10.51200/bimpeagajtsd.v10i1.3623
Nuvriasari, A., Suyanto, M., Nor, M., & Azman, A. (2022). The Effect of Market Orientation Towards Small and Medium Enterprises Batik Entrepreneurial Marketing: A Case Study in Indonesia. QAS, 23(188). https://doi.org/10.47750/qas/23.188.16
Octaviana, D. and Andni, R. (2023). The Role of Digital Marketing in Increasing the Income of UMKM Alam Tani Hydrofarm in Kudus. J. Social Science Utilizing Tech, 1(2), 98-104. https://doi.org/10.55849/jssut.v1i2.596
Prasanna, R., Jayasundara, J., Gamage, S., Ekanayake, E., Rajapakshe, P., & Abeyrathne, G. (2019). Sustainability of SMEs in the Competition: A Systemic Review on Technolog-ical Challenges and SME Performance. Journal of Open Innovation Technology Mar-ket and Complexity, 5(4), 100. https://doi.org/10.3390/joitmc5040100
Prayitno, E., Tarigan, N., Mauidzoh, U., & Sukmawaty, W. (2024). The Revival of SMEs in In-donesia from the Impact of the Covid-19 Pandemic. Journal of the Community De-velopment in Asia, 7(2), 99-114. https://doi.org/10.32535/jcda.v7i2.2950
Puspaningrum, A. (2020). Market Orientation, Competitive Advantage and Marketing Per-formance of Small Medium Enterprises (SMEs). Journal of Economics Business and Accountancy Ventura, 23(1), 19-27. https://doi.org/10.14414/jebav.v23i1.1847
Rizki, R., Gunawan, C., Askiyanto, M., Kusufa, F., Iriani, N., Rifa’i, M., … & Nugroho, A. (2024). Maximizing the Management of Red Onion and Crispy Rice Crackers Micro, Small, and Medium Enterprises (MSMEs) in Purworejo Village, Ngantang Subdistrict, Ma-lang Regency as Efforts to Expand Market Share. JISE, 2(1), 46-52. https://doi.org/10.61105/jise.v2i1.89
Sabrina, K. (2021). Analisis Penerapan Tata Kelola Pada Kelompok Usaha Mikro Kecil Dan Menengah (UMKM) di Kecamatan Semarang Barat. Jaka (Jurnal Akuntansi Keuangan Dan Auditing), 1(1). https://doi.org/10.56696/jaka.v2i1.5149
Sari, S., Yunizar, Y., & Sartika, D. (2020). Penentu Keunggulan Bersaing pada UMKM : Apakah Kompetensi Digital Dan Orientasi Kewirausahaan Penting?. Adbispreneur, 5(1), 63. https://doi.org/10.24198/adbispreneur.v5i1.26999
Soesetio, Y., Soetjipto, B., Handayati, P., Winarno, A., & Wijaya, F. (2024). Mediating role of competitiveness between process innovation and financial performance: Interna-tionalization moderation. International Journal of Applied Economics Finance and Accounting, 18(1), 207-215. https://doi.org/10.33094/ijaefa.v18i1.1362
Surya, B., Menne, F., Sabhan, H., Suriani, S., Abubakar, H., & Idris, M. (2021). Economic Growth, Increasing Productivity of SMEs, and Open Innovation. Journal of Open In-novation Technology Market and Complexity, 7(1), 20. https://doi.org/10.3390/joitmc7010020
Tambunan, T. (2011). Development of Micro, Small and Medium Enterprises and Their Constraints: A Story from Indonesia. Gadjah Mada International Journal of Business, 13(1), 21. https://doi.org/10.22146/gamaijb.5492
Taneo, S., Agustina, M., & Noya, S. (2023). The Moderating Influence of Government Policy on The Innovation Capability-Competitiveness Relationship in Food SMES. Journal of Technology Management & Innovation, 18(2), 6-17. https://doi.org/10.4067/s0718-27242023000200006
Umar, A., Adawiah, A., Barkatullah, A., Ifrani, I., Mahyuni, M., Amrin, M., … & Farisi, N. (2022). Government Policies and Regulations, Leadership Style and Employee Per-formance in Increasing Productivity of Indonesia’s Small and Medium Enterprises. Society, 10(1), 182-206. https://doi.org/10.33019/society.v10i1.471
Wasito, W. and Fuji, F. (2023). Penguatan Digital Marketing Untuk Memperluas Pasar Dan Daya Saing Kelompok Wanita Tani Di Desa Sidomulyo Puncu. Al-Umron Jurnal Pengabdian Kepada Masyarakat, 4(2), 87-97. https://doi.org/10.32665/alumron.v4i2.2012
Wati, D., Septianingsih, V., Khoeruddin, W., & Al-Qorni, Z. (2024). Peranan UMKM (Usaha Mikro, Kecil dan Menengah) dalam Meningkatkan Perekonomian Indonesia. jebmak, 3(1), 265-282. https://doi.org/10.61930/jebmak.v3i1.576
Wisnujati, N., Marjuki, M., & Munir, A. (2023). Digital Marketing Strategies of MSMEs in Fac-ing Consumption Trends in the New Year. Jurnal Minfo Polgan, 12(2), 2393-2400. https://doi.org/10.33395/jmp.v12i2.13278
Wong, A. and Kee, D. (2022). Driving Factors of Industry 4.0 Readiness among Manufactur-ing SMEs in Malaysia. Information, 13(12), 552. https://doi.org/10.3390/info13120552
Published
2026-01-29
How to Cite
Indriyati Lanangawa, Mohammad Zubair Hippy, Siti Rahmatia Machieu, Dian Rahayu Maku, Mustakim Mokoginta, Djunaida Kandow, & Meilan Daud. (2026). Analysis of Productivity and Comparative-Competitive Advantage of MSMEs in Gorontalo City. International Journal of Business and Quality Research, 4(01), 140-155. https://doi.org/10.63922/ijbqr.v4i01.2906
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