The determinant factors of development batik cluster business: Lesson from Pekalongan, Indonesia

Abstract

The study examines how business conditions, demand conditions and the role of government can influence the development of batikclusters in Pekalongan. This research is expected to be able to provide recommendations for both employers and local governments in order to help in optimizing the development of batikclusters.The research applied a quantitative research by engaging multipleregression analysis as an effort to understand the effect of the relationship between independent and dependent variables.In addition,this research was conducted in three largest batik clusters in Pekalongan, Indonesia namely batik cluster of Pasindon, Kauman, andJenggot. These results indicate that business conditions positively affect the batik clusters development. Itimplies that the greaterboth business conditions in a cluster will lead the better the development. Indeed, the demand conditions also have an impacton thecluster development. This finding remarked that demand conditions are variable that need to be considered to development of batikcluster. Lastly, Government's role is confirmed that positively related to the Development of Batik Clusters. It implies that the moreactive the government's role in a cluster will have a good impact on the development of the clusters in certain area.