Factors influencing the market requirements fulfillment in small medium enterprise fish processors in East Java

Abstract

The development of the maritime and fisheries sector is directed to industrialization in order to prevent the dependence of Indonesia's consumption needs on other countries, by utilizing this large local market as a basis for international markets development. However, there are still many obstacles in penetrating the market. The purpose of the research is to examine the effect of legal requirementsfulfillment, product quality, agency coordination, human resources and regulation on the market requirements, the certification of a small and medium fish processor (SMFP). This descriptive quantitative research was carried out through survey and interview methods. Data were analyzed using Partial Least Square (PLS) to determine the effect of exogenous variables. The relationship evaluation showed that legal requirements, human resources, and product quality had a significant effect on the market requirements for certification (p = 0.001, 0.009 and 0.019, respectively), while the agency coordination and regulations had no significant effect on market requirements for certification (p = 0.268 and 0.678, respectively). Then the SME empowerment program needs to pay attention to the aspects of fulfilling the legal requirements and increasing the capacity of human resources.