Technology Innovation Adoption to Improve the Performance of Dairy Small-Medium Enterprises (SME): Case study in Pangalengan-Bandung Regency, West Java, Indonesia

Abstract

This study explores the conditions and the problems of the production and quality of the product faced by dairr SMEs in Pangalcngan-Bandung Regency. This study aims to recommend lhe technology that mighl be accepted and adopted to address the problem in the framework of GMP and lo idenlify factors that may influence the adoption of the new technology. Problems relaled wilh lhe quality of the products have been identified and GMP implemen1at1on evalua1ion has been conducted. This research recommends the technology adoption 1ha1 might be acceplable and adopled 10 address the problems arc: I. Establishing a process control system. A scheme of standardized production process has been proposed; ~.Mechanization of key processing stage, such as moulding and cutting machines and the use of boiling pans equipped with the lhermocouph:; 3. Improvement of the product"s packaging lo enhance protection of the product thus will e~tend 1hc shelf life. II is suggested to modify lhe secondary packaging using standing pouch aluminum foil. Factors that may influence the adoption of lechnology by the SMEs have been identified. The positive factors arc: the motivation and efforls lo improve the quality and performance of the product; consumers' demand for quality and good manufacturing practices; government or regulatory enforcement; and increasing production volumes. The negative factors are: limited knowledge and educational backgrourld of the SMEs' human resources; the reluctance of the SMEs to change lheir current traditional practices: and financial cost.The SMEs perceived that the relative advantage of GMP implementation is low due to the cost that arise as a results of fac1hties and equipment improvement Implementation of GMP and the new technology embodied in it are perceived as complicated by the SMEs.