Hybrid FAHP and TOPSIS to determine recommendation for improving SMEs facing Covid-19 pandemic

Abstract

The Covid-19 pandemic has had an impact on domestic economy, such as a decrease in people’s consumption and purchasing power, a decline in company performance, as well as SMEs. This situation, SMEs sector controls 99.99% of all existing businesses, employs 97.16% of private sector workforce, and contributes 57.5% to Indonesia’s gross product. Various government program efforts in helping Batik SMEs players face Covid-19 pandemic so that they are right on target. The large number of SMEs in Bangkalan is around 166,768, causing department to find it difficult to determine recommendations for improvement for each MSME. Based on these problems, a cooperative model for the SMEs industry is needed so that official work program runs smoothly on target. The method used is FAHP and TOPSIS integration method, FAHP method is used to determine weighting and TOPSIS method is used for ranking and recommendations for improvement. The advantage of FAHP is consistency index to control error rate of decision. TOPSIS method is capable of making multi-criteria decisions based on alternative SMEs industry mapping process. The purpose is make a recommendation model for improvement using hybrid method of FAHP and TOPSIS with balanced scorecard indicators for learning and growth perspective. The research contribution is to make decisions based on group recommendations and consistency ratio (CR) is less than 0.1. The findings research, that the influential indicators are batik business ownership and variations of batik motifs. The recommendations for improvement, the average MSME still does not have branding.

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