Local Economic Development Strategy Based on Localindustrial Core Competence

Abstract

AbstractLocal economy can be promoted through the development of small and medium industries by building up local industrial core competence. Local core competence is one of the strategies to increase local competitive advantage through the optimization of local competitive potency. This study was aimed at drafting the strategy of local economic development through local industrial core competence based on competitive commodities of Banyumas district.This study employed qualitative as well as quantitative approaches. The study site is Banyumas Regency. Data collecting techniques include secondary data mining, survey, observation, in-depth interview, and focussed group disscusion. Data were then analyzed using interactive analysis, Analytic Hierarchy Process and Interpretive Structural Modeling.The results show that batik is the most potential industry to be the local industrial core competence in Banyumas district. The competitive advantage of batik as the industrial core competence of Banyumas district can be executed through the following three stages: (1) initial stage (infrastructure improvement, finance and legislation support (2) main stage (human resource development, management and marketing, branding and the creation of batik uniqueness) and (3) final stage (increase in productivity and initiation of related and supporting industries).