Identification of Enhancing Factors for Increasing The Power Competitiveness of Small Medium Industry of Batik in Sidoarjo District With Integration of Green Innovation Approach and ISM

Purpose: Identify the inhibiting factors of increasing competitiveness in the small and medium batik industry in the district of Sidoarjo. Design/methodology/approach: The data collection process uses a questionnaire compiled with the Green Innovation approach with five main variables, Green Resource, Green Process, Green Product, Green Innovation, and Competitive Advantage. Green Innovation is a process of continuous innovation that considers the integration of the environment, finance, social systems in the company from the stage of ideas through research and development and commercialization that affect new products, services, technology, business, and organizational models. Determination of alternatives and strategy analysis using the Interpretative Structural Modeling (ISM) approach is a method that uses the opinions of experts on the questionnaire that has been distributed. Findings: Based on the analysis results, 14 inhibiting factors and six priority levels were obtained, with the highest value of the power driver in the training and outreach factor (10) as the main inhibiting factor in increasing competitiveness. Therefore, it requires the involvement of all parties related to the batik SMEs to improve their competitiveness and the strategies they choose. Research limitations/implications: This research was conducted at the Small and Medium Industry (IKM) of batik in the district of Sidoarjo, which is one of 15 districts in East Java who chose One Village One Product (OVOP) as strategies increase the power of competitiveness. Number of samples relative small if it is compared with the number of batik SME di East Java. Practical implications: Result of this research can be used to increase competitiveness of SME Batik in East Java and Indonesia. Originality/value: This research is original. Paper type: Research paper. Keyword: Enter key words or phrases in alphabetical order, separated by commas and maximum of six words. IKM, OVOP, Green Innovation, ISM, Inhibiting Factors Received: July 25 th , 2020 Revised: August 17 th , 2020 Published: September 30 th , 2020 :: IJEBD :: (International Journal of Entrepreneurship and Business Development) Volume 03 Number 03 September 2020 This work is licensed under a Creative Commons AttributionShareAlike 4.0 International License. ISSN : 2597-4785 (ONLINE) ISSN : 2597-4750 (PRINTED) Identification of Enhancing Factors for Increasing The Power Competitiveness of Small Medium Industry of Batik in Sidoarjo District With Integration of Green Innovation Approach and ISM Ida Kusnawati Tjahjani, Abdul Hakim, Bagyo Yanuwiadi, Dias Satria Page │ 279


I. INTRODUCTION
As one of the cultural heritages, Batik has made Indonesia an international name since it was designated by UNESCO as an Intangible Cultural Heritage of Humanity in Abu Dhabi on October 2, 2009, which has the potential to support the people's economy, because it has a significant influence on world demand, turning into a classy business (Republika.co.id, 2009), a market leader, and has comparative and competitive competitiveness with several export destination countries, including the United States, Belgium, Britain, Japan, and South Korea.

Figure 2. Map of the Distribution of Written Batik in Indonesia
In line with Presidential Regulation 28/2008 on the National Industrial Development Policy which stipulates that each regency/city must develop regional commodity commodities and the launch of One Village One Product (OVOP) by the Governor of East Java in 2008 which opens opportunities for 15 districts/cities to implement the strategy to improve the competitiveness of selected batik (Kamil, 2011), namely: Page │ 280 IK = Creative Industry OVOP = One Village One Product Sidoarjo Regency is one of the regencies in the northern part of East Java Province which was dubbed the "Indonesian SME City" in 2013 because it has 30 types of superior products Tjahjani, Mochammad Hatta, & Wahyudi (2017) as well as the only regency that had five batik centers with distinctive features and different characteristics in several districts since the Dutch era, namely Sekardangan and Jets wrote batik in Sidoarjo District, Kenongo printed batik in Tulangan district, Kedung Cangkring written batik in Jabon District (Tjahjani, Hatta, & Wahyudi, 2018) and Peranakan Chinese batik. However, only Jets, Sekardangan and Kenongo batik centers have been able to rise since 1980 (Ida Kusnawati Tjahjani, Baharuddin, & Yuliawati, 2019), although in conditions that are quite alarming with various problems encountered, including:

Table 2. Problems and Effects of Written Batik
Issue Impact Slow regeneration of craftsmen (Wardani, 2015) Decreasing the number of artisans from time to time Differences in the value of each craftsman (Bahruddin & Nugraha, 2013) Batik as ancestral heritage Batik in the context of the era Batik appreciation is only a formality (Bahruddin & Nugraha, 2013) Lack of understanding the value, meaning and production process Art, complicated, manual and non-standard processes (Widayati, 2013) Work with heart, long processes, and expensive Equipment and work environment that is not ergonomic (I. K. Tjahjani et al., 2017) Productivity, muscle fatigue, and occupational diseases Changes and development of motives (Ramelan, 2008) The shorter design cycle and the diverse desires of consumers (Shanti & Ratyaningrum, 2016). Don't understand the patent (Nurainun, Heriyana, & Rasyimah, 2008) The location of artisans and production results (Bahruddin & Nugraha, 2013) Not yet able to be used as the main livelihood Management, production administration, catalogs, supervision of production results, and marketing methods (I. K. Tjahjani et al., 2017) Inaccurate preparation, business process planning, marketing coverage, sales turnover, and competitiveness Capital, market access, raw materials, labor & technological mastery (Pawitan, 2012) Low efficiency (inefficiency), quality, and product competitiveness (Mizar, Mawardi, Maksum, & Rahardjo, 2008) Technology mismatches in terms of capacity, quality and sustainability (Marshal, 2012) In addition to these problems, currently making batik waste also becomes a focus, because it produces three waste at once, namely: 1). Liquid waste from washing, coloring, chloride, dyeing, and fixing fixanol (Rochma & Titah, 2017); (Kurniawan, Purwanto, & Sudarno, 2014). 2). Waste gas, from fabric cutting, washing, drying, mola, nyanting, soaking, staining, drying, mbironi, nglorod, fixing soaking fixanol, and drying and 3). Solid waste arising from cutting cloth, mbironi, mola, and nglorod. As awareness of the environment, health, market demands, and the availability of dyes from various types of plants are available in place of synthetic dyes.
The purpose of this study is to identify the inhibiting factors for increasing competitiveness in the small and medium batik industry in Sidoarjo Regency with the integration of the Green Innovation and Interpretative Structural Modeling (ISM) approach.

A. Green Innovation
Green Innovation is a process of continuous innovation with consideration of environmental, financial, social integration in company systems from the idea stage of research and development (R&D) and commercialization that influences new products, services, technology, business and organizational models (Charter & Clark, 2007), which was applied to the questionnaire according to the literature and expert opinion as an inhibiting factor.

B. Interpretative Structural Modeling (ISM)
ISM is a decision-making analysis tool in complex situations by grouping and linking it on a map to strategic policy planning Santoso & Darwanto (2015) by prioritizing qualitative factors and proposing hierarchical structures based on sequence and category (Rimantho & Rosdiana, 2018),whose application: 4. Make the Reachability Matrix (RM) and replace the symbols V, A, X, and O with numbers 1 or 0. 5. Calculates based on the rules of transitivity, so that the SSIM matrix is corrected until a closed matrix (loop matrix) occurs. 6. Determine the level of sub-elements for each element according to vertical and horizontal levels. 7. Arranging a Driver-Power-Dependence (DPD) matrix and Level Partitions. 8. Classifying sub-elements into four sectors Diabat, Govindan, & Panicker (2012), namely: a. AUTONOMOUS (weak driver -weak dependent variables), b. DEPENDENT (weak driver -weak dependent variables), c. LINKAGE (strong driver -strongly dependent variables), d. INDEPENDENT (strong driver -strongly dependent variables)

III. RESULTS AND DISCUSSION
Based on the results of the survey, literature, and expert opinion, there are 14 indicators, which are factors that inhibit the increase in competitiveness in the Small and Medium Industry (IKM) of written batik.

Green Product Innovation
The use materials that can be recycled (Dangelico & Pujari, 2010) Training and outreach from the government to SME's 4.

Green Innovation
Regulation and Policies (Kemp, 2009 Choice of strategy

A. SSIM Matrix
SSIM is compiled based on the opinion of experts and the literature on the questionnaire in the form of symbols to show the relationship between factors i and j. is an inhibiting factor in increasing competitiveness in IKM written batik:

B. Reachability Matrix
The following stages are from the reachability matrix: 1. Replace the symbols V, A, X and O on RM with numbers 1 or 0, according to the provisions: -If the symbol V, then entries (i, j) are one and entries (j, i) are 0.
-If the symbol A, then entries (i, j) are 0 and entries (j, i) are 1 -If the symbol X, then entries (i, j) are one and entries (j, i) are 1.

D. MICMAC Analysis
From the value of driven power and dependence, the Micmac analysis can be described as follows:

ACKNOWLEDGMENTS
The authors much acknowledge the support from Brawijaya University Malang Indonesia for providing the necessary resources to this research. The authors are also grateful to the anonymous reviewers and journal editorial board for their many insightful comments, which have significantly improved this article.