Linkage Formationby Small Firms : The Cast of A Rural Cluster in Indonesia  

Oleh:

Sato, Yuri

Jenis: Article from Journal - ilmiah nasional
Dalam koleksi: BIES: Bulletin of Indonesian Economic Studies vol. 36 no. 1 (2000), page 137-166.
Topik: RURAL; linkage information; small firms; rural cluster

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: BB59.4 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

Lihat Detail Induk

Isi artikel

This paper analyses forward linkages formed by small firms in Ceper, a rural metal - casting cluster in Central Java, and examines the effects of these linkages in promoting the firms' development. Firms in the cluster have developed subcontracting linkages with assemblers in the urban modern sector, and putting - out linkages with wholesalers located in the cities. The linkages provide benefits beyond product sales : some firms are stimulated to improve technological capabilities through subcontracting linkages with assemblers; others are supported by trade credits embedded in linkages with wholesalers. In comparing these effects with external assistance, the firms rate technological help from private institutions with a business orientation more highly than that from assemblers, and support from wholesalers more highly than any other source of financial assistance. Government assistance receives a relatively low rating. There is little evidence of effects of clustering, partly because firms consider linkages with the outer economy more strategic.

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