GLOBAL VALUE CHAIN PARTICIPATION OF AN INDONESIAN MODEST FASHION SME’s: A CASE STUDY FROM MALANG
-
Dyah Setyawati(1*)
Program Doktor Ilmu Manajemen, Fakultas Ekonomi, Universitas Negeri Malang
-
Sudarmiatin Sudarmiatin(2)
Manajemen, Fakultas Ekonomi, Universitas Negeri Malang
-
Heri Pratikto(3)
Manajemen, Fakultas Ekonomi, Universitas Negeri Malang
(*) Corresponding Author
Keywords:
Global Value Chain, Modest Fashion, SME Internationalization, Uppsala Model
Abstract
This study examines the participation of an Indonesian modest fashion SME in the global value chain. The research focuses on an Abaya-producing SME in Malang that has expanded its market to several international destinations. Data were collected through in-depth interviews, observation, and supporting documentation, and analyzed thematically. The findings show that the firm entered export markets gradually through digital platforms, exhibitions, and direct communication with overseas buyers. Its global value chain participation was strengthened by trust-based relationships, product adaptation, quality control, and continuous learning in export procedures. The study also finds that internationalization encouraged capability upgrading and created local economic benefits through the involvement of community-based workers. This case suggests that SME participation in global value chains can develop incrementally through adaptive learning, relational governance, and strong local production linkages.
Keywords : Global Value Chain; Modest Fashion; SME Internationalization;Uppsala Model
Downloads
Download data is not yet available.
References
ASEAN, & OECD. (2022). ASEAN SMEs’ integration in global value chains (GVCs): Opportunities and challenges in response to COVID-19. OECD Publishing.
Bowen, G. A. (2009). Document analysis as a qualitative research method. Qualitative Research Journal, 9(2), 27–40. https://doi.org/10.3316/QRJ0902027
Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77–101. https://doi.org/10.1191/1478088706qp063oa
Calheiros-Lobo, N., Vasconcelos Ferreira, J., & Au-Yong-Oliveira, M. (2023). SME internationalization and export performance: A systematic review with bibliometric analysis. Sustainability, 15(11), Article 8473. https://doi.org/10.3390/su15118473
Carter, N., Bryant-Lukosius, D., DiCenso, A., Blythe, J., & Neville, A. J. (2014). The use of triangulation in qualitative research. Oncology Nursing Forum, 41(5), 545–547. https://doi.org/10.1188/14.ONF.545-547
DiCicco-Bloom, B., & Crabtree, B. F. (2006). The qualitative research interview. Medical Education, 40(4), 314–321. https://doi.org/10.1111/j.1365-2929.2006.02418.x
Faisal, Y. A., & Apriliadi, A. (2021). Faktor kesuksesan akselerasi ekspor UKM industri halal di Indonesia: Analisis Delphi. Serambi: Jurnal Ekonomi Manajemen dan Bisnis Islam, 3(2), 109–122.
Gereffi, G., Humphrey, J., & Sturgeon, T. (2005). The governance of global value chains. Review of International Political Economy, 12(1), 78–104.
https://doi.org/10.1080/09692290500049805
Global Value Chain Development Report. (2023). Global value chain development report 2023: Resilient and sustainable GVCs in turbulent times. World Trade Organization, World Bank, OECD, Institute of Developing Economies–JETRO, and Research Center of Global Value Chains.
Humphrey, J., & Schmitz, H. (2002). How does insertion in global value chains affect upgrading in industrial clusters? Regional Studies, 36(9), 1017–1027. https://doi.org/10.1080/0034340022000022198
Johanson, J., & Vahlne, J.-E. (2009). The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership. Journal of International Business Studies, 40(9), 1411–1431.
Kawulich, B. B. (2005). Participant observation as a data collection method. Forum Qualitative Sozialforschung / Forum: Qualitative Social Research, 6(2), Article 43.
Kresnawati, M. A., Wardhani, B., & Dugis, V. (2025). Implementation of upgrading in global value chain activities of Indonesian coffee SMEs: Results of empirical study. Jurnal Ilmiah Hubungan Internasional, 21(1), 23–34.
Nugroho, M. I. (2022). Global value chains participation to enhance export: Evidence from Indonesian apparel SMEs. Journal of Socioeconomics and Development, 5(1), 99–114. https://doi.org/10.31328/jsed.v5i1.2789
OECD. (2023). Policy toolkit for strengthening FDI and SME linkages. OECD Publishing.
OECD. (2024). SME digitalisation to manage shocks and transitions. OECD Publishing.
Oliveira, R. H., Figueira, A. R., & Pinhanez, M. (2018). Uppsala model: A contingent theory to explain the rise of EMNEs. Internext, 13(2), 30–42. https://doi.org/10.18568/1980-4865.13230-42
Palinkas, L. A., Horwitz, S. M., Green, C. A., Wisdom, J. P., Duan, N., & Hoagwood, K. (2015). Purposeful sampling for qualitative data collection and analysis in mixed method implementation research. Administration and Policy in Mental Health and Mental Health Services Research, 42(5), 533–544. https://doi.org/10.1007/s10488-013-0528-y
Rosyidah, U., Sudarmiatin, S., & Sumarsono, H. (2023). Digitalization and internationalization of SMEs: A systematic literature review. Journal of Enterprise and Development, 5(3), 479–499. https://doi.org/10.20414/jed.v5i3.7196
Tambunan, T. T. H. (2019). Recent evidence of the development of micro, small and medium enterprises in Indonesia. Journal of Global Entrepreneurship Research, 9, Article 18. https://doi.org/10.1186/s40497-018-0140-4
Tambunan, T. T. H. (2024). Micro and small enterprises’ export and participation in global value chains: Evidence from Indonesia. Journal of Developing Economies, 9(1).
Yin, R. K. (2018). Case study research and applications: Design and methods (6th ed.). SAGE.
Yuniastuti, V., & Pratama, A. A. (2023). Portraits and challenges of Indonesia’s modest fashion industry on the halal industry competition in the world. Indonesian Journal of Halal Research, 5(1), 21–29. https://doi.org/10.15575/ijhar.v5i1.17385
Bowen, G. A. (2009). Document analysis as a qualitative research method. Qualitative Research Journal, 9(2), 27–40. https://doi.org/10.3316/QRJ0902027
Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77–101. https://doi.org/10.1191/1478088706qp063oa
Calheiros-Lobo, N., Vasconcelos Ferreira, J., & Au-Yong-Oliveira, M. (2023). SME internationalization and export performance: A systematic review with bibliometric analysis. Sustainability, 15(11), Article 8473. https://doi.org/10.3390/su15118473
Carter, N., Bryant-Lukosius, D., DiCenso, A., Blythe, J., & Neville, A. J. (2014). The use of triangulation in qualitative research. Oncology Nursing Forum, 41(5), 545–547. https://doi.org/10.1188/14.ONF.545-547
DiCicco-Bloom, B., & Crabtree, B. F. (2006). The qualitative research interview. Medical Education, 40(4), 314–321. https://doi.org/10.1111/j.1365-2929.2006.02418.x
Faisal, Y. A., & Apriliadi, A. (2021). Faktor kesuksesan akselerasi ekspor UKM industri halal di Indonesia: Analisis Delphi. Serambi: Jurnal Ekonomi Manajemen dan Bisnis Islam, 3(2), 109–122.
Gereffi, G., Humphrey, J., & Sturgeon, T. (2005). The governance of global value chains. Review of International Political Economy, 12(1), 78–104.
https://doi.org/10.1080/09692290500049805
Global Value Chain Development Report. (2023). Global value chain development report 2023: Resilient and sustainable GVCs in turbulent times. World Trade Organization, World Bank, OECD, Institute of Developing Economies–JETRO, and Research Center of Global Value Chains.
Humphrey, J., & Schmitz, H. (2002). How does insertion in global value chains affect upgrading in industrial clusters? Regional Studies, 36(9), 1017–1027. https://doi.org/10.1080/0034340022000022198
Johanson, J., & Vahlne, J.-E. (2009). The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership. Journal of International Business Studies, 40(9), 1411–1431.
Kawulich, B. B. (2005). Participant observation as a data collection method. Forum Qualitative Sozialforschung / Forum: Qualitative Social Research, 6(2), Article 43.
Kresnawati, M. A., Wardhani, B., & Dugis, V. (2025). Implementation of upgrading in global value chain activities of Indonesian coffee SMEs: Results of empirical study. Jurnal Ilmiah Hubungan Internasional, 21(1), 23–34.
Nugroho, M. I. (2022). Global value chains participation to enhance export: Evidence from Indonesian apparel SMEs. Journal of Socioeconomics and Development, 5(1), 99–114. https://doi.org/10.31328/jsed.v5i1.2789
OECD. (2023). Policy toolkit for strengthening FDI and SME linkages. OECD Publishing.
OECD. (2024). SME digitalisation to manage shocks and transitions. OECD Publishing.
Oliveira, R. H., Figueira, A. R., & Pinhanez, M. (2018). Uppsala model: A contingent theory to explain the rise of EMNEs. Internext, 13(2), 30–42. https://doi.org/10.18568/1980-4865.13230-42
Palinkas, L. A., Horwitz, S. M., Green, C. A., Wisdom, J. P., Duan, N., & Hoagwood, K. (2015). Purposeful sampling for qualitative data collection and analysis in mixed method implementation research. Administration and Policy in Mental Health and Mental Health Services Research, 42(5), 533–544. https://doi.org/10.1007/s10488-013-0528-y
Rosyidah, U., Sudarmiatin, S., & Sumarsono, H. (2023). Digitalization and internationalization of SMEs: A systematic literature review. Journal of Enterprise and Development, 5(3), 479–499. https://doi.org/10.20414/jed.v5i3.7196
Tambunan, T. T. H. (2019). Recent evidence of the development of micro, small and medium enterprises in Indonesia. Journal of Global Entrepreneurship Research, 9, Article 18. https://doi.org/10.1186/s40497-018-0140-4
Tambunan, T. T. H. (2024). Micro and small enterprises’ export and participation in global value chains: Evidence from Indonesia. Journal of Developing Economies, 9(1).
Yin, R. K. (2018). Case study research and applications: Design and methods (6th ed.). SAGE.
Yuniastuti, V., & Pratama, A. A. (2023). Portraits and challenges of Indonesia’s modest fashion industry on the halal industry competition in the world. Indonesian Journal of Halal Research, 5(1), 21–29. https://doi.org/10.15575/ijhar.v5i1.17385
Published
2026-03-31
How to Cite
Setyawati, D., Sudarmiatin, S., & Pratikto, H. (2026). GLOBAL VALUE CHAIN PARTICIPATION OF AN INDONESIAN MODEST FASHION SME’s: A CASE STUDY FROM MALANG. Journal of Management : Small and Medium Enterprises (SMEs), 19(1), 601-613. https://doi.org/10.35508/jom.v19i1.27727
Section
Articles
