International Journal of Local Economic Governance
Vol. 4 No. 1 (2018)

The Strategy of Development Cluster SMES of Apples Dodol by Integration K-Means Clustering and Analytical Hierarchy Process Method

Mustaniroh, Siti Asmaul (Unknown)
Ala, Mohammad (Unknown)
Effendi, Usman (Unknown)



Article Info

Publish Date
15 Apr 2019

Abstract

The purpose of this research is to determine the grouping of SMEs apple dodol in Batu and to determine an appropriate development strategy for each cluster. The method of grouping using K-means clustering which is integrated with the Analytical Hierarchy Process (AHP) method to determine the priority of the development strategy for each cluster. Variables used in grouping include the production capacity per month (X1), long of operation (X2), investment value (X3), the average sales revenue per month (X4), the amount of assets of SMEs (X5) and number of labor (X6). Factors to determine the development strategies are industry cluster, government also related and supporting industries. The number of sample for SMEs apple dodol consisted of five units. The result showed formed 2 clusters of SMEs apple dodol are created by k-means clustering method. The result of AHP method indicates the priority of development strategy for SMEs dodol apples, in cluster 1 is improving the quality and standardization of product and cluster 2 is increasing marketing access.

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Journal Info

Abbrev

IJLEG

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

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