Strategic development model for priority MSMEs in Jambi City using the VIKOR-STRAS framework
DOI:
https://doi.org/10.22437/ppd.v14i2.50950Keywords:
Development strategies, Micro, small, and medium enterprises (MSMEs), Priority sectors, VIKOR, VIKOR-STRASAbstract
Micro, small, and medium enterprises (MSMEs) play a vital role in the regional economy of Jambi City; however, the identification of priority sectors and the formulation of sector-specific development strategies remain insufficiently addressed. This study aims to identify priority MSME sectors and formulate targeted development strategies to support regional economic development. The study employs the VIšekriterijumsko KOmpromisno Rangiranje (VIKOR) multi-criteria decision-making method to rank MSME sectors based on eight evaluation criteria: business age, owner education, business experience, income, number of employees, business capital, working hours, and promotional media. The research combines secondary data analysis, field surveys, and in-depth interviews, using a purposive sample of 204 MSMEs across eight business sectors. The VIKOR-STRAS framework is subsequently applied to translate the ranking results into sector-specific development strategies. The findings indicate that the creative industry, culinary, and information technology sectors represent the three highest development priorities. Based on the sectoral performance profiles, the proposed strategies emphasize improving access to finance and market opportunities, strengthening product innovation and digital marketing, and enhancing digital infrastructure, technology adoption, and human resource capacity. The principal contribution of this study is the integration of the VIKOR method with the VIKOR-STRAS framework to translate multi-criteria ranking results into practical development strategies systematically. Theoretically, the study extends the application of multi-criteria decision-making by linking compromise-based prioritization with sector-specific strategy formulation. In practice, it provides local policymakers with a structured, evidence-based decision-support framework for designing targeted, sector-sensitive MSME development policies.
References
Abdul Jabbar, S., Panakaje, N., Madhura, K., Riha Parvin, S. M., Irfana, S., & Shahid, M. (2025). Strengthening MSME financing: An overview of recent advancements in MUDRA schemes. In B. Alareeni (Ed.), The digital edge: Transforming business systems for strategic success (Vol. 584, pp. 395–411). Studies in Systems, Decision and Control. Springer. https://doi.org/10.1007/978-3-031-85898-7_36
Alshebami, A. S. (2025a). Crisis management and customer adaptation: Pathways to adaptive capacity and resilience in micro- and small-sized enterprises. Sustainability, 17(9), Article 3759. https://doi.org/10.3390/su17093759
Alshebami, A. S. (2025b). Purpose-driven resilience: A blueprint for sustainable growth in micro- and small enterprises in turbulent contexts. Sustainability, 17(5), Article 2308. https://doi.org/10.3390/su17052308
Alshebami, A. S., Fazal, S. A., & Alzain, E. (2025). Nurturing entrepreneurial well-being and resilience through adaptability and positive reciprocity among micro and small enterprises. Discover Sustainability, 6(1), Article 845. https://doi.org/10.1007/s43621-025-01722-8
Ananda, A. S., Murwani, I. A., Tamara, D., & Ibrahim, I. I. (2023). Adoption of digital marketing toward digital transformation in Indonesian micro- and small-sized enterprises. In 2023 8th International Conference on Business and Industrial Research (ICBIR) (pp. 877–882). IEEE. https://doi.org/10.1109/ICBIR57571.2023.10147569
Asanova, N. A., Kononov, D. E., Yeshugova, F. R., & Veselova, N. Y. (2025). Retail trade in rural areas as a factor of attractiveness of green business. In E. G. Popkova (Ed.), Corporate social responsibility to the green growth of business and economy (Advances in Science, Technology & Innovation, pp. 425–430). Springer. https://doi.org/10.1007/978-3-031-83041-9_70
Bahar, & Ningsih, N. S. (2018). Sistem pendukung keputusan penentuan prioritas pembinaan usaha mikro dan kecil menggunakan metode simple additive weighting. Jurnal Ilmiah Komputer, 14(2), 127-136. http://dx.doi.org/10.35889/progresif.v14i2.319
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
Basuki, A., Cahyani, A. D., Sukri, H., Umam, F., Suzanti, I. O., & Khotimah, B. K. (2023). Decision support system of sustainable supplier selection for micro, small, and medium enterprise in apparel industry. In 2023 Eighth International Conference on Informatics and Computing (ICIC) (pp. 1–6). IEEE. https://doi.org/10.1109/ICIC60109.2023.10382098
Boubaker, S., Le, T. D. Q., Ngo, T., & Manita, R. (2025). Predicting the performance of MSMEs: A hybrid DEA-machine learning approach. Annals of Operations Research, 350(2), 555–577. https://doi.org/10.1007/s10479-023-05230-8
Chłoń-Domińczak, A., Fiedukowicz, A., & Olszewski, R. (2020). Geographical and economic factors affecting the spatial distribution of micro, small, and medium enterprises: An empirical study of the Kujawsko-Pomorskie region in Poland. ISPRS International Journal of Geo-Information, 9(7), Article 426. https://doi.org/10.3390/ijgi9070426
Damarsari, R., Junaidi, J., & Yulmardi, Y. (2015). Kinerja pembangunan daerah kabupaten/kota di Provinsi Jambi. Jurnal Perspektif Pembiayaan dan Pembangunan Daerah, 2(3), 161–172. https://doi.org/10.22437/ppd.v2i3.2272
Davalas, A., & Angelaki, A. (2025). Digital government policies for supporting start-ups and entrepreneurs. In M. Themistocleous, N. Bakas, G. Kokosalakis, & M. Papadaki (Eds.), Information systems (Lecture Notes in Business Information Processing, Vol. 535, pp. 350–366). Springer. https://doi.org/10.1007/978-3-031-81322-1_24
Duan, M. (2023). The role of innovation in economic growth and how technological advancements transform industries and employment. In Proceedings of the 2023 4th International Conference on Big Data Economy and Information Management (pp. 658–661). ACM. https://doi.org/10.1145/3659211.3659324
Eko Sasono, Naili Farida, & Harry Soesanto. (2023). The role of knowledge creation in mediating the effect of network capability on performance of micro, small, and medium enterprises. International Journal of Business and Society, 24(3), 1197–1212. https://doi.org/10.33736/ijbs.6417.2023
Farrokhi, F., & Pellegrina, H. S. (2023). Trade, technology, and agricultural productivity. Journal of Political Economy, 131(9), 2509–2555. https://doi.org/10.1086/724319
Firdaus, A. H., Nurhayati, E., & Phala Irhamna, A. D. (2022). The impact of trade war on the ASEAN-4 economy. Macroeconomics and Finance in Emerging Market Economies, 15(3), 231–245. https://doi.org/10.1080/17520843.2021.1911463
Gupta, H., & Barua, M. K. (2016). Identifying enablers of technological innovation for Indian MSMEs using best-worst multi-criteria decision-making method. Technological Forecasting and Social Change, 107, 69–79. https://doi.org/10.1016/j.techfore.2016.03.028
Hassan, A. M., & Abbas, J. K. K. (2024). Social environment planning services impact in rural areas. In AIP Conference Proceedings (Vol. 3007, Article 030007). AIP Publishing. https://doi.org/10.1063/5.0236293
Irvanizam, I., Azzahra, N., Nadhira, I., Zulfan, Z., Subianto, M., & Syahrini, I. (2021). Multiple criteria decision making based on VIKOR for productive economic endeavors distribution problem. In 2021 Sixth International Conference on Informatics and Computing (ICIC) (pp. 1–6). IEEE. https://doi.org/10.1109/ICIC54025.2021.9632890
Jannah, M., & Pranjoto, R. G. H. (2025). Entrepreneurial marketing on MSMEs as a socio-economic development for sustainable competitive advantage. IOP Conference Series: Earth and Environmental Science, 1441(1), Article 012041. https://doi.org/10.1088/1755-1315/1441/1/012041
Kusdiana, D., & Gunardi, A. (2014). Pengembangan produk unggulan UMKM Kabupaten Sukabumi. Trikonomika, 13(2), 153–171. https://doi.org/10.23969/trikonomika.v13i2.611
Kusumasari, B., & Retnandari, N. D. (2021). When pandemic knocks, adapt fast: Strategy and resilient of MSMEs facing crisis in Indonesia. International Journal of Globalisation and Small Business, 12(4), 392–407. https://doi.org/10.1504/IJGSB.2021.120488
Lestari, N. S., Rosman, D., & Triana, I. (2024). Analyzing the effect of innovation and strategic planning on MSME performance, utilizing technology adoption as a moderator. Procedia Computer Science, 245, 500–507. https://doi.org/10.1016/j.procs.2024.10.276
Lin, J. Y., Yang, Z., Li, Y., & Zhang, Y. (2022). Development strategy and the MSMEs finance gap. Journal of Government and Economics, 5, Article 100034. https://doi.org/10.1016/j.jge.2022.100034
Liu, X., Liu, S., Zhou, L. X., & Liu, D. (2025). Can the digital economy improve the competitiveness of the tourism industry? A study based on multiple model analysis. Journal of Policy Research in Tourism, Leisure and Events, 1–17. https://doi.org/10.1080/19407963.2025.2570767
Loku, A., & Loku, N. (2025). Globalization, automation, and the future of work: Examining the impact of technological advancements on the workforce. Quality - Access to Success, 26(204), 88–96. https://doi.org/10.47750/QAS/26.204.10
Magoutas, A. I., Manolopoulos, D., Manouka, M., & Dimitropoulou, M. (2024). Digitalization of the alternative tourism marketspace: Evidence from an EU peripheral economy. Tourism and Hospitality, 5(4), 1151–1166. https://doi.org/10.3390/tourhosp5040064
Martinravi, C. P., & Krishnasamy, K. (2025). Unleashing the potential of MSMEs in India: A strategic analysis. Journal of the International Council for Small Business, 6(1), 123–143. https://doi.org/10.1080/26437015.2024.2397664
McGregor, S. (2005). Consumer transactions with SMEs: Implications for consumer scholars. International Journal of Consumer Studies, 29(1), 2–16. https://doi.org/10.1111/j.1470-6431.2005.00354.x
Mendez, P., Atienza, M., & Modrego, F. (2023). Urbanization and productivity at a global level: New empirical evidence for the services sector. Regional Science Policy & Practice, 15(9), 1981–1998. https://doi.org/10.1111/rsp3.12620
Mohite, R. A., Chourasiya, R. H., & Sharma, S. (2025). Innovation, sustainability and growth: MSMEs as catalysts in India's textile manufacturing ecosystem. Journal of the Textile Association, 86(1), 1–10. https://doi.org/10.63665/jta.v86i01.05
Msomi, T. S., & Olarewaju, O. M. (2024). Evaluating small and medium-sized enterprises' resilience in South Africa. Folia Oeconomica Stetinensia, 24(2), 162–181. https://doi.org/10.2478/foli-2024-0021
Ogbo, N. B., & Han, T. A. (2024). Coordination dynamics in technology adoption: Lessons from an evolutionary game theoretical analysis. In D. Burrell (Ed.), Multisector insights in healthcare, social sciences, society, and technology (pp. 295–326). IGI Global Scientific Publishing. https://doi.org/10.4018/979-8-3693-3226-9.ch016
Pereira, W., Missio, F., & Jayme, F. (2024). Structural change in the 21st century: The role of the modern services sector in the economic development strategy. Review of Political Economy, 1–25. https://doi.org/10.1080/09538259.2024.2342431
Purwono, R., Heriqbaldi, U., Esquivias, M. A., & Mubin, M. K. (2021). The US-China trade war: Spillover effects on Indonesia and other Asian countries. Economics Bulletin, 41(4), 2370–2385.
Purwono, R., Heriqbaldi, U., Esquivias, M. A., & Mubin, M. K. (2022). The American-China trade war and spillover effects on value-added exports from Indonesia. Sustainability, 14(5), Article 3093. https://doi.org/10.3390/su14053093
Shama, Mazhar, S., Mittal, P., Rizvi, A. F., Khan, F. S., & Rehman, A. U. (2024). Exploring the interplay of entrepreneurs' awareness, perception and intention in driving digitalization for MSMEs: A focused insight into SIDBI's role. Financial and Credit Activity: Problems of Theory and Practice, 3(56), 59–73. https://doi.org/10.55643/fcaptp.3.56.2024.4374
Sinanding, C. S., & Haryati, T. (2022). Pengaruh latar belakang pendidikan, ukuran usaha dan literasi keuangan terhadap perencanaan keuangan UMKM di masa pandemi COVID-19. Ekonomis: Journal of Economics and Business, 6(2). https://doi.org/10.33087/ekonomis.v6i2.553
Singh, D., Ram, B., Kumar, H., Singh, P., & Singh, A. (2025). On evaluation of technology innovation characteristics of Indian MSMEs: An empirical study. Journal of The Institution of Engineers (India): Series C, 106(4), 1129–1135. https://doi.org/10.1007/s40032-025-01235-3
Singla, M. (2023). MSMEs: The growth engine of India to achieve sustainable development goals and self-reliance. In H. Dasaraju & T. T. Tambunan (Eds.), Role of micro, small and medium enterprises in achieving SDGs (Sustainable Development Goals Series, pp. 73–87). Palgrave Macmillan. https://doi.org/10.1007/978-981-99-4829-1_4
Soegoto, A. S., Soegoto, D. S., & Pasha, M. S. (2020). Empowerment digital strategies for medium small enterprises. Journal of Physics: Conference Series, 1477(7), Article 072003. https://doi.org/10.1088/1742-6596/1477/7/072003
Sugiarto, R. M., & Iskandar, D. A. (2023). Technology improvement and micro, small, and medium enterprises (MSMEs) on regional development in Special Region of Yogyakarta. Optimum: Jurnal Ekonomi dan Pembangunan, 13(1). https://doi.org/10.12928/optimum.v13i1.3829
Sutramiani, N. P., Arthana, I. M. T., Lampung, P. F., Aurelia, S., Fauzi, M., & Darma, I. W. A. S. (2024). The performance comparison of DBSCAN and K-means clustering for MSMEs grouping based on asset value and turnover. Journal of Information Systems Engineering and Business Intelligence, 10(1), 13–24. https://doi.org/10.20473/jisebi.10.1.13-24
Vujadinović, N., & Jaksic-Stojanovic, A. (2022). Digitalization and implementation of modern ICT in tourism and creative industries on the example of the cultural routes. In I. Karabegović, A. Kovačević, & S. Mandžuka (Eds.), New technologies, development and application V (Lecture Notes in Networks and Systems, Vol. 472, pp. 562–567). Springer. https://doi.org/10.1007/978-3-031-05230-9_67
Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171–180.
Widyastuti, S., Qosasi, A., Noor, L. S., & Kurniawati, D. (2017). Enhancing the competitive advantage of SMEs through innovation: The role of market and entrepreneurship orientation, learning organizations. International Journal of Economic Research, 14(20), 203–221.
Wijaya, L. I., Zunairoh, Z., Izharuddin, M., & Rianawati, A. (2025). Scope of e-commerce use, innovation capability, and performance: Food sector MSMEs in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 11(1), Article 100459. https://doi.org/10.1016/j.joitmc.2024.100459
Yacob, S., Sulistiyo, U., Marzal, J., Siregar, A. P., & Mukminin, A. (2025). An investigation of entrepreneurial orientation, social media adoption and e-commerce on MSME business performance during the COVID-19 outbreak in Indonesia. Quality - Access to Success, 26(208), 144–158. https://doi.org/10.47750/QAS/26.208.17
Yanuar, Y., Arifin, A. Z., MN, N., & Darryl, D. (2025). How important is the US-China trade war to FDI flows into ASEAN countries? The Chinese Economy, 1–13. https://doi.org/10.1080/10971475.2025.2588858
Yusral, Y., Junaidi, J., & Bakti, A. (2015). Klasifikasi pertumbuhan, sektor basis dan kompetitif Kota Jambi. Jurnal Perspektif Pembiayaan dan Pembangunan Daerah, 2(4), 209–216. https://doi.org/10.22437/ppd.v2i4.2617
Yuvanda, S., Rachmad, M., & Hidayat, M. S. (2022). Strategy in developing priority craft industry by using SAW-SWOT model in Jambi Province. Jurnal Perspektif Pembiayaan dan Pembangunan Daerah, 10(5). https://doi.org/10.22437/ppd.v10i5.16654
Yuvanda, S., Rachmad, M., Nur, D. A. R., & Nadeak, B. V. (2026). Faktor dominan berhubungan dengan pendapatan UMKM dan strategi peningkatannya di Kota Jambi (Pendekatan nonparametrik). Jurnal Manajemen Terapan dan Keuangan, 15(1), 61–70.
Zhang, K. (2021). Economic structural transformation in emerging market countries. Global Journal of Emerging Market Economies, 13(2), 216–238. https://doi.org/10.1177/09749101211004614
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Sesraria Yuvanda, Muhammad Rachmad R., Zulfanetty Zulfanetty, Mohammad Ihsan, Moh. Sahroni Nurkodri
This work is licensed under a Creative Commons Attribution 4.0 International License.
