Performance Measurement of SMEs of Malang Batik as a Result of Local Wisdom with Balanced Scorecard

Abstract

SMEs are a type of business in Indonesia proven to have resilience in various economic conditions, even economic crisis. No wonder the number of SMEs in Indonesia is increasing from year to year. Similarly with SMEs in Malang. Since batik is recognized by sabagai cultural heritage of Indonesia by UNESCO, then batik popping up in various regions in Indonesia with various icon and regional superiority as result of local wisdom. Similarly, Malang does not lose work with batik with excellent motifs that are characteristic of Malang. SMEs Batik becomes more and more like mushrooms in the rainy season, so competition can not be avoided. Therefore, SMEs Batik need to have a performance measurement system that can be used to measure how the performance has been achieved in order to achieve business goals and simultaneously win the competition in business higher. In this research, performance measurement system of SME Batik Malang developed by Balanced Scorecard method that can assess the achievement of performance by considering four perspectives, namely finance, customer, internal business process, and learning and growth. The results of this study can be obtained performance measurement system SMEs Batik Malang consisting of 24 key performance indicators, with the results of business performance in this case SMEs Andis Batik Malang has a good performance.