Jurnal Vokasi Indonesia
Vol. 13, No. 2

Factor and Demand Conditions Shaping Production Effectiveness in Remote MSMEs: A Case Study of Luci Snack in North Kalimantan

Alhadi, Saadiq (Unknown)
Asyari, Hasyim (Unknown)



Article Info

Publish Date
27 Jan 2026

Abstract

The production effectiveness of agro-industrial MSMEs in remote frontier regions is severely hampered by geographic isolation and lack of basic infrastructure. This study examines the unique case of Luci Snack in North Kalimantan, operating without state electricity or land access. The research aims to analyze how the interaction between Factor Conditions (river logistics and technology) and Demand Conditions influences Production Effectiveness. Employing an embedded single-case study design, data were collected via in-depth interviews with the owner and village officials, participant observation, and documentation, then analyzed using the Miles, Huberman, and SaldaƱa (2014) interactive model. Findings reveal a paradox: (1) Production effectiveness is not interpreted conventionally as speed or volume, but redefined as an absolute commitment to quality consistency; (2) Limitations in manual technology and isolated logistics are capitalized upon as a "traditional" Unique Selling Point; (3) This superior quality generates a loyal demand pattern that tolerates production speed inefficiencies. The implication is that sustainability for remote MSMEs depends on transforming infrastructure limitations into premium product differentiation rather than volume-based competition.

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Journal Info

Abbrev

publication:jvi

Publisher

Subject

Humanities Economics, Econometrics & Finance Education Health Professions Other

Description

a scientific journal in Universitas Indonesia. This Journal serves as a means of dissemination of scientific research results conducted by the academicians both from internal and external. JVI contains research results and applied studies on educational, social humanities, health issues, especially ...