A Dynamic Capabilities of Small Scale Agribusiness Enterprises in Indonesia

Small Scale Agribusiness Enterprises (SSAEs) is particularly vulnerable to competition with bigger and more modern business actors because the efforts are at greater risk while the profit margins are relatively small. By taking the case of a vegetable business community in Malang Region, Indonesia through Ethnography approach, the researchers try to answer the question of why entrepreneurs who came from certain communities are relatively stronger in facing competition compared with other local entrepreneurs. The results of this research show that amidst the fierce competition with new entrepreneurs, they are able to do such process of sensing, seizing, and transforming as mediated by the process of developing and transferring knowledge, developing and sharing networks, as well as doing a flexibility of labor management and an inclusiveness of local politics to SSAEs interest so that they have better dynamic capacity. Nevertheless, further research is needed to have a more detail perspective on how a certain community mediates SSAEs to utilize specific resources in order to improve its dynamic capabilities.