Strategy for Strengthening MSME in Facing the Free Trade Era

Abstract

Micro, Small and Medium Enterprises (MSME) have an important and strategic role in Indonesia's economy. But the competitiveness of MSME in Indonesia is still lower compared to those of developed countries. This study aims to improve the MSME brand strategy established at Qlapa.com. This research is quantitative with a consumer survey approach on Qlapa.com, while data analysis uses Partial Least Square. The results show that Customer-Based Brand Equity (CBBE) has a significant influence on purchasing decisions; consumer psychology has a significant influence on purchasing decisions; consumer psychology has an influence on the formation of CBBE; CBBE has a moderating role with a significant mediating influence on changes in acquisition results; and CBBE has a moderating role with imperfect mediation effects on the formation of purchasing decisions for MSME products. Therefore, to improve the MSME brand strategy established at Qlapa.com, it is necessary to increase the influence of CBBE on purchasing decisions for MSME products.

Increasing Competitiveness in Small and Medium Industries

“…For now, even small industries can develop and contribute to the improvement of the country and regional economies. However, the important role of small industries has not been evenly distributed so that the competitiveness of the actors is categorized as weak (Bahari & Bestari, 2019). Bandung is one of the cities whose industrial sector is developing, but until 2017, according to the business field, the Gross Regional Domestic Product Growth Rate (GRDP) of the Bandung City processing industry has not stepped on 5% (BPS Kota Bandung, 2018) so that it has become a sector that the Bandung City government pays attention to.…”