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Title: Hambatan Dinamika Vertikal Industri Menengah di Indonesia
Authors: Sunaryanto, Lasmono Tri
Tambunan, Mangara
Keywords: small enterprises;hallow of the middle;stagnant;vertical immobility
Issue Date: Mar-2003
Publisher: Fakultas Ekonomi UKSW Salatiga
Abstract: Medium enterprise (ME), in its own subset, is a neglected topic of any discussion on industrial structure. In policy, it is blended with small enterpriser to become small and medium enterprises (SMEs), but in statistics, it is counted together with large enterprises to become medium and large enterprises (MLEs). Consequently, it is both underestimated and overestimated. So, what the medium enterprise really is? The objective of this paper is to investigate and to assess a specific question on why population of medium enterprises (MEs) is so stagnant. This problem may relate to the vertical immobility of small enterprises (SEs) to become MEs. This research is designed to investigate and analyze the major factors behind. Two different study hypothesis are proposed on why the MEs are stagnant: (i) the failure of SEs to scale up to become MEs, and (ii) lack of competition in business environment such as market barriers (i.e. monopoly and oligopoly) and regulatory framework for making free market entry. The results of this study show the failure of SEs to scale-up in terms of number of workers were employed and outputs may have create the vertical immobility. We suspected there is a very small number of SEs establishment that able to scale-up to become MEs. Our findings also show that before and during crisis (1996-1997) the number of MEs establishment was reduced by 6.8 percent, while during crisis and recovery (1998-2000) the number of MEs establishment increased by 2.7 percent. This implies that the economic crisis has created and added new factor to the long term stagnant problems of MEs. Some problems behind the stagnant condition of MEs, are may due to: a) poor capital accumulation, b) unconducive business environment, c) high market entry cost (i.e. transaction cost), and d) weak linkages.
Description: Jurnal Ekonomi dan Bisnis. Vol. IX, no. 1, Maret 2003, p.117-148
ISSN: 0854-9087
Appears in Collections:Jurnal Ekonomi dan Bisnis 2003, Vol. IX, no. 1, Maret

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