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All Journal PAPUA: International Journal of Sharia Business Management
Bagus Wahzu Ilahi Yusuf
Universitas Al-Hikmah Indonesia, Tuban, Indonesia

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The Competitiveness of Local Wisdom-Based MSME Products in Facing Global Markets Bagus Wahzu Ilahi Yusuf
PAPUA: International Journal of Sharia Business Management Vol. 2 No. 1 (2025): (JUNI) PAPUA: INTERNATIONAL JOURNAL OF SHARIA BUSINESS MANAGEMENT
Publisher : Study Program of Sharia Business Management , Faculty of Islamic Economics and Business

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.53491/papua.v2i1.1777

Abstract

This study investigates the competitiveness of local wisdom-based Micro, Small, and Medium Enterprises (MSMEs) in Indonesia within the context of global markets. The research addresses a pressing question: why do culturally rich MSMEs struggle to achieve international competitiveness? Using a qualitative descriptive-analytic method, the study draws on interviews, field observations, and secondary data from MSMEs in Bali, Yogyakarta, and West Sumatra. Porter’s Diamond Model and Cultural Branding Theory serve as analytical frameworks to assess internal capabilities, strategic gaps, and market alignment. The findings show that while 68% of MSMEs incorporate cultural elements in their products, only 33% are globally competitive, and just 22% have reached export markets. Key obstacles include limited branding strategy, lack of international certification, fragmented support infrastructure, and insufficient digital engagement. The study concludes that cultural capital alone is not sufficient; it must be converted into structured competitive strategies to position MSMEs on the global stage.
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