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Firm and Group Dynamics in the Small and Medium Enterprise Sector in Indonesia

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Small Firm Dynamism in East Asia

Abstract

This paper discusses the role of clusters and subcontracting as factors in the evolution of small and medium firms in Indonesia during the last quarter century. It is argued that a number of such firms have become successful exporters of rattan furniture, wood furniture and garments on the strength of subcontracting relationships with foreign investors and buyers as well as agglomeration economies achieved by clustering in selected locations. Examples are provided to show that clustered enterprises are more likely to be in the exports business and to adopt product and process innovations as compared to more dispersed firms. Public policy support for fostering subcontracting links and cluster formation is also discussed.

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Author information

Authors and Affiliations

  1. Department of Economics, University of Toronto, 150 St. George Street, Toronto, Ontario, M5S 1A1, Canada

    Albert Berry

  2. Department of Finance, Ottawa, Canada

    Edgard Rodriguez

  3. The Free University, Amsterdam, The Netherlands

    Henry Sandee

Authors
  1. Albert Berry
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  2. Edgard Rodriguez
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  3. Henry Sandee
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Editor information

Editors and Affiliations

  1. World Bank, Washington, USA

    Farrukh Iqbal

  2. Waseda University, Tokyo, Japan

    Shujiro Urata

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© 2002 Springer Science+Business Media Dordrecht

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Berry, A., Rodriguez, E., Sandee, H. (2002). Firm and Group Dynamics in the Small and Medium Enterprise Sector in Indonesia. In: Iqbal, F., Urata, S. (eds) Small Firm Dynamism in East Asia. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-0963-9_8

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  • DOI: https://doi.org/10.1007/978-1-4615-0963-9_8

  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-1-4613-5326-3

  • Online ISBN: 978-1-4615-0963-9

  • eBook Packages: Springer Book Archive

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