Dynamic Strategy and Contingency Power of SMEs Fish Processing Units In Achieving Sustainability Levels (Case Study: SMEs of Boneless Milkfish Processing Units in Pinrang Regency, Indonesia)

Abstract

Increased competition has demanded the adaptation of SMEs to environmental changes and challenges for the success of companies in Indonesia. The purpose of this study is to analyze the strategy and contingency power of SMEs of fish processing units in reaching the level of sustainability. The object of the research is the SMEs of fish processing units in Pinrang Regency, South Sulawesi. This type of research is qualitative, which is descriptive by using case study techniques. Data collection techniques through field observations, in-depth interviews, and related documents. The results of this study indicate that the sustainability level of SMEs of the boneless milkfish processing unit in Pinrang Regency is proactive towards the continuity of production, continuity of sales, and continuity of raw material procurement. The sustainability of SMEs of fish processing units is shown by its ability to surf in chaotic dynamics. SMEs of fish processing units which have a high level of sustainability has been able to build an input process-output system dynamically so that it has contingency power and appropriate strategies in dealing with environmental dynamics. The contributing factor to the unsustainability of SMEs of fish processing units is the low ability to; build systems to be able to establish contingencies with the external environment. To improve and maintain its level of sustainability, the SMEs of fish processing units are improving the input-process-output system dynamically, optimizing contingency power with the task environment as well as with the political, economic, social, cultural, technological and natural environment.