Inclusive Development Strategy Based on Regional Excellent Potential Mapping through Business Clusters in Supporting MSME Marketing Development: Penta Helix Approach

Abstract

The MSME sector has become a pillar of the Magelang City economy with a contribution to the economy of 60%. The MSME sector in Magelang City is currently experiencing a decline due to two factors including the Covid-19 pandemic and the characteristics of the MSME business itself. Thus, it is necessary to map the potential of MSMEs based on business cluster-based superior potential so as to support the accelerated development of MSMEs in Magelang City, as well as encourage the creation of strategic policies in responding to shocks that occur in the economy quickly and purposefully. This study uses the Geographic Information System (GIS) model. This analysis discusses the characteristics of MSMEs in Magelang City. Structural Equation Modeling (SEM) is a multivariate technique that combines aspects of multiple regression (testing dependency relationships) and factor analysis (describing concepts that cannot be measured factors with multiple variables), and the Analytical Hierarchy Process (AHP) method arranges a priority as well as the purpose of the various options using several criteria. Based on the analysis result of marketing capabilities through social media and marketing performance directly have a significant influence on competitive advantage. Based on AHP analysis, the most prioritized criterion in developing the MSME marketing network in Magelang City is government policy.