• Vol 7, No 7 (2016)
  • Industrial Engineering

Performance Evaluation of Large and Medium Scale Manufacturing Industry Clusters in East Java Province, Indonesia

Erni Puspanantasari Putri, Danaipong Chetchotsak, Panutporn Ruangchoenghum, Muaffaq Achmad Jani, Retno Hastijanti


Publish at : 30 Dec 2016 - 00:00
IJtech : IJtech Vol 7, No 7 (2016)
DOI : https://doi.org/10.14716/ijtech.v7i7.5229

Cite this article as:
Putri, E.P.., Chetchotsak, D.., Ruangchoenghum, P.., Jani, M.A.., Hastijanti, R.., 2016. Performance Evaluation of Large and Medium Scale Manufacturing Industry Clusters in East Java Province, Indonesia. International Journal of Technology. Volume 7(7), pp.1269-1279
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Erni Puspanantasari Putri Department of Industrial Engineering, Faculty of Engineering, Khon Kaen University, Khon Kaen, 40002, Thailand
Danaipong Chetchotsak Department of Industrial Engineering, Faculty of Engineering, Khon Kaen University, Khon Kaen, 40002, Thailand
Panutporn Ruangchoenghum College of Graduate Study in Management, Khon Kaen University, Khon Kaen, 40002, Thailand
Muaffaq Achmad Jani Department of Informatics Engineering, Faculty of Engineering, University of 17 Agustus 1945 Surabaya, Jl. Semolowaru 45 Surabaya 60118, Indonesia
Retno Hastijanti Department of Architecture, Faculty of Engineering, University of 17 Agustus 1945 Surabaya, Jl. Semolowaru 45 Surabaya 60118, Indonesia
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Abstract

East Java Province in Indonesia is the centre of the eastern Indonesia region and it has a fairly high economic significance, which has contributed 14.85% to the national Gross Domestic Product (GDP). The role of Large and Medium Scale Manufacturing Industry (LMSMI) clusters in this province is very important and strategic as one of the main drivers for economic progress and it becomes a part of the efforts to improve the society's life. Therefore, it is necessary to evaluate the performance of LMSMI clusters continuously. The purpose of this study is to investigate the productivity changes of LMSMI clusters in East Java Province, Indonesia, so that they will be able to survive, grow and compete in facing global competition. The method used in this study is the method of DEA-based Malmquist Productivity Index. The result of this study indicates that 50% of the LMSMI clusters in East Java Province are in the category of improved productivity, while the remaining clusters are in the category of declining productivity.


DEA-based Malmquist Productivity Index; Industry cluster; LMSMI; Performance evaluation