Adaptation Strategy Of Cirebon Batik Business MSMEs To The Trend Of Protectionism And Fragmentation Of The Global Export Market

Aniza Octoviani; Afrida Sary Puspita

doi:10.35891/4yhnzq67

Authors

Aniza Octoviani Institut Bisnis dan Informatika (IBI) Kosgoro
Afrida Sary Puspita Institut Bisnis dan Informatika (IBI) Kosgoro

DOI:

https://doi.org/10.35891/4yhnzq67

Keywords:

fragmentation, protectionism, strategy, adaptation, global

Abstract

This study examines the adaptation strategies of Cirebon Batik MSMEs in response to rising global protectionism and export market fragmentation. Using a descriptive quantitative approach and survey data from 46 MSME owners in the Trusmi Batik Cluster, analysis was conducted with Structural Equation Modeling Partial Least Squares (SEM-PLS). The findings reveal that protectionist policies, such as tariffs and quotas, do not significantly influence MSME strategies, largely because most producers rely on intermediaries for export distribution. In contrast, global market fragmentation exerts a strong effect, explaining 61.5% of the variance in adaptation strategies. MSMEs respond by diversifying product portfolios, innovating designs, and adopting digital technologies to meet diverse consumer preferences and penetrate new market segments. These strategies highlight the importance of dynamic capabilities adaptive, integrative, and innovative in sustaining competitiveness. The study underscores that fragmentation should be seen not only as a challenge but also as an opportunity for cultural industries to expand through digital platforms and authenticity certification. Practically, the results suggest strengthening MSME support in branding, digital literacy, and international market access. Theoretically, the research extends Dynamic Capability Theory by demonstrating its relevance for cultural-based enterprises facing global trade uncertainty.

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Author Biography

Afrida Sary Puspita, Institut Bisnis dan Informatika (IBI) Kosgoro

Afrida Sary Puspita is a lecturer in the Department of Business Administration at the Institute of Business and Informatics (IBIK), East Jakarta. Her academic focus includes business strategy, MSME development, and adaptation of cultural industries to global market dynamics. She has published research on financial inclusion, Islamic finance, and MSME competitiveness, and actively contributes to scholarly work on entrepreneurship and international trad

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