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Analysis of Resource Ownership of Small Medium Industry and Their Effect on Natural Disaster Preparedness in the Beach Area (Study on SMEs Food Industry Branch)

Author

Listed:
  • Mohamad Adfar

    (Student of Doctoral Program in Economics, Tadulako University-Palu)

  • Patta Tope

    (Department of Economics and Development Studies, Faculty of Economics and Business, Tadulako University)

  • Muchtar Lutfi

    (Department of Economics and Development Studies, Faculty of Economics and Business, Tadulako University)

Abstract

Palu Bay is one of the bays in a seismically active area in Indonesia which is traversed by the Palu-Koro fault segment. In the aftermath of a major natural disaster in the Region on September 28, 2018 Palu City, Donggala Regency and Sigi Regency were areas that were most affected by this disaster, so it was necessary to identify the level of community preparedness, especially for SMEs in dealing with natural disasters in the future and how the impact of resource ownership will be that they have whether the resource significantly affects SMEs preparedness to face natural disasters. This research was conducted three years after the natural disaster in the Palu Bay Area. The assessment was carried out through a questionnaire involving 260 SMIs that were chosen randomly and from the four variables of SMEs resources studied, that the resources that had an effect on disaster preparedness were the capital variable, which was 0.07, the entrepreneurial variable was 0.35, the labor variable was -0.03, and the Information Technology variable is not significant. While the level of preparedness of SMEs in dealing with natural disasters in the future, 17.31% of respondents are stated to be “not ready†, 60.90% “somewhat ready†and 23.8% “ready†while none of the respondents were “very prepared†. This lack of readiness of SMEs clearly requires the attention of all stakeholders in fostering the resilience of SMEs.

Suggested Citation

  • Mohamad Adfar & Patta Tope & Muchtar Lutfi, 2022. "Analysis of Resource Ownership of Small Medium Industry and Their Effect on Natural Disaster Preparedness in the Beach Area (Study on SMEs Food Industry Branch)," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(02), pages 146-156, February.
    • Handle: RePEc:bcp:journl:v:06:y:2022:i:02:p:146-156
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    References listed on IDEAS

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    3. Chaudhuri, Atanu & Subramanian, Nachiappan & Dora, Manoj, 2022. "Circular economy and digital capabilities of SMEs for providing value to customers: Combined resource-based view and ambidexterity perspective," Journal of Business Research, Elsevier, vol. 142(C), pages 32-44.
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