•  
  •  
 

Abstract

The production effectiveness of agro-industrial MSMEs in remote frontier regions is severely hampered by geographic isolation and lack of basic infrastructure. This study examines the unique case of Luci Snack in North Kalimantan, operating without state electricity or land access. The research aims to analyze how the interaction between Factor Conditions (river logistics and technology) and Demand Conditions influences Production Effectiveness. Employing an embedded single-case study design, data were collected via in-depth interviews with the owner and village officials, participant observation, and documentation, then analyzed using the Miles, Huberman, and Saldaña (2014) interactive model. Findings reveal a paradox: (1) Production effectiveness is not interpreted conventionally as speed or volume, but redefined as an absolute commitment to quality consistency; (2) Limitations in manual technology and isolated logistics are capitalized upon as a "traditional" Unique Selling Point; (3) This superior quality generates a loyal demand pattern that tolerates production speed inefficiencies. The implication is that sustainability for remote MSMEs depends on transforming infrastructure limitations into premium product differentiation rather than volume-based competition.

Bahasa Abstract

Efektivitas produksi UMKM agroindustri di wilayah terpencil sering terhambat oleh isolasi geografis dan ketiadaan infrastruktur dasar. Penelitian ini menelaah kasus unik Luci Snack di Desa Tanjung Buka, Kalimantan Utara, yang beroperasi tanpa akses listrik negara maupun jalan darat. Tujuan penelitian adalah menganalisis bagaimana interaksi Kondisi Faktor (logistik sungai dan teknologi) serta Kondisi Permintaan memengaruhi Efektivitas Produksi. Menggunakan desain studi kasus tunggal teranam (embedded single-case study), data dikumpulkan melalui wawancara mendalam dengan pemilik dan aparatur desa, observasi partisipan, serta studi dokumentasi, lalu dianalisis menggunakan model interaktif Miles, Huberman, dan Saldaña (2014). Temuan mengungkap sebuah paradoks: (1) Efektivitas produksi tidak dimaknai secara konvensional sebagai kecepatan atau volume, melainkan redefinisi menjadi komitmen absolut terhadap konsistensi kualitas; (2) Keterbatasan teknologi manual dan logistik terisolasi justru dikapitalisasi menjadi nilai jual "tradisional" yang unik (Unique Selling Point); (3) Kualitas superior ini menciptakan pola permintaan loyal yang mentoleransi inefisiensi waktu produksi. Implikasinya, keberlanjutan UMKM terpencil tidak dicapai dengan kompetisi volume, melainkan dengan mengubah keterbatasan infrastruktur menjadi diferensiasi produk dengan kualitas tinggi.

References

Achmad, M. R., Suharnomo, S., & Rahayu, M. (2025). Knowledge management, green innovation and competitive advantage of SMEs: Empirical evidence from batik industry in Indonesia. Journal of Innovation & Knowledge, 10(2), 78–91. https://doi.org/10.1016/j.jik.2025.02.005

Alam, S. S., Ramayah, T., & Nor, N. G. M. (2025). Implementation of supply chain management and performance of SMEs: Evidence from agricultural sector in Southeast Asia. Agricultural Economics – Czech, 71(2), 67–76. https://doi.org/10.17221/314/2024-AGRICECON

Aliyev, A. (2025). Contextual innovation strategies for microenterprises in rural economies: A qualitative exploration. Small Enterprise Research, 32(1), 44–60. https://doi.org/10.1080/13215906.2025.2025432

Alshahrani, A., & Salam, M. A. (2022). The role of supply chain resilience on SMEs’ performance: The case of an emerging economy. Management Science Letters, 12(10), 943–954. https://doi.org/10.5267/j.msl.2022.3.009

Amerta, I. M., Junaedi, I. W. R., & Sara, I. M. (2024). The influence of raw material quality on product quality in chips MSMEs. International Journal of Applied Business and International Management, 9(1), 12–25.

Anastasia, M., & Oktafia, R. (2021). Strategi pemasaran syariah dalam meningkatkan daya saing UMKM kerupuk. Jurnal Ilmiah Ekonomi Islam, 7(3), 1584–1592.

Bappenas. (2022). Peta jalan pembangunan daerah tertinggal, terdepan, dan terluar (3T) 2020-2024 [Roadmap for the development of underdeveloped, frontier, and outermost regions (3T) 2020-2024]. Kementerian Perencanaan Pembangunan Nasional/Bappenas.

BPS Kabupaten Bulungan. (2024). Kabupaten Bulungan dalam angka 2024 [Bulungan Regency in figures 2024]. Badan Pusat Statistik Kabupaten Bulungan.

Edeh, J. N., Alabi, J. O., & Ekwe, M. C. (2025). Infrastructure, innovation capabilities and SME export intensity in transitional economies. Technological Forecasting and Social Change, 198, 122014. https://doi.org/10.1016/j.techfore.2025.122014

Gold, T. (2025). The impact of Industry 4.0 adoption on operational performance in SMEs: Evidence from a cross-sectoral analysis. SAGE Open, 15(1), 1–14. https://doi.org/10.1177/21582440251336514

Heizer, J., Render, B., & Munson, C. (2020). Operations management: Sustainability and supply chain management (13th ed.). Pearson.

Kannan, A., & Gambetta, E. (2025). Appropriate technology adoption among micro-producers: Balancing efficiency and authenticity. Technological Forecasting and Social Change, 200, 122090. https://doi.org/10.1016/j.techfore.2024.122090

Keelson, S. A., Danso, A., & Gyan, K. (2024). Customer loyalty as a buffer to structural inefficiencies in Ghanaian SMEs. Journal of Small Business and Enterprise Development, 31(1), 89–105. https://doi.org/10.1108/JSBED-09-2023-0301

Kementerian Koperasi dan UKM. (2023). Laporan perkembangan data usaha mikro, kecil, menengah (UMKM) dan usaha besar (UB) tahun 2022-2023 [Report on the development of data on micro, small, medium enterprises (MSME) and large enterprises (UB) years 2022-2023]. Deputi Bidang Kewirausahaan, Kementerian Koperasi dan UKM RI.

Kgakatsi, R. (2024). Digital technology adoption and SME performance: A systematic review. Digital, 4(4), 38. https://doi.org/10.3390/digital4040038

Kharub, M., & Sharma, R. K. (2017). Comparative assessment of MSME competitiveness using Porter's diamond. International Journal of Quality & Reliability Management, 34(2), 156–172.

Kusnandar, D., & Hartono, B. (2021). Efektivitas produksi dan insentif pasar pada UMKM pangan skala mikro. Jurnal Teknologi Agroindustri, 12(1), 45–56.

Maisaroh, M. (2021). Dampak penerapan rantai pasokan berkelanjutan terhadap keunggulan kompetitif pada UMKM. Matrik: Jurnal Manajemen, Strategi Bisnis dan Kewirausahaan, 15(1), 44–52.

Miles, M. B., Huberman, A. M., & Saldaña, J. (2014). Qualitative data analysis: A methods sourcebook (3rd ed.). Sage Publications.

Nugroho, M. A., & Hidayat, A. (2022). Tantangan adopsi teknologi digital pada UMKM pedesaan di Indonesia. Jurnal Sistem Informasi Bisnis, 12(1), 55–64.

Porter, M. E. (1990). The competitive advantage of nations. Free Press.

Prastyaningtyas, E. W. (2022). Strategi bertahan UMKM di tengah keterbatasan infrastruktur ekonomi. Jurnal Ekonomi & Bisnis, 7(2), 112–125.

Rustian, L. A., & Widiastuti, T. (2020). Daya saing usaha mikro kecil: Modifikasi Porter diamond model. Jurnal Ilmiah Aset, 22(2), 147–158.

Saptana, S., Daryanto, A., & Kuntjoro, K. (2021). Daya saing dan efisiensi usaha mikro kecil pangan. Jurnal Manajemen & Agribisnis, 18(1), 33–45.

Segun, A. (2021). The role of infrastructure in entrepreneurial growth in developing economies: A study of rural Nigeria. Journal of Development Economics, 45(3), 210–225.

Smit, A. J. (2010). The competitive advantage of nations: Is Porter’s diamond framework a new theory that explains the international competitiveness of countries? Southern African Business Review, 14(1), 105–130.

Yahaya, K., Ibrahim, R., & Mat, S. (2023). Customer trust and loyalty in Malaysian traditional snack SMEs: Moderating role of value perception. Asia Pacific Journal of Marketing and Logistics, 35(5), 980–999. https://doi.org/10.1108/APJML-06-2022-0504

Yin, R. K. (2018). Case study research and applications: Design and methods (6th ed.). Sage Publications.

Share

COinS