Factor Analysis of SME Owner Intention to Join Collaborative Manufacturing Networks Using Structural Equation Modeling

Small and Medium enterprises in Indonesia lack on initiative and knowledge in the field of Collaborative Manufacturing Networks (CMN). SME owner has an important role to establish strong Collaborative Manufacturing Networks. To the author's knowledge, there are rare studies regarding SME owner intention to join CMN. Therefore, this study investigates the factors influencing SME owner intention to join CMN of Batik SME in Indonesia. The data for this study, including three factors: Resource, Trust, and Design, was gathered from 140 Batik SME owners. The method used in this study is Structural Equation Modeling. This study finds that Trust and Design have a positive influence on the intention to join Collaborative Manufacturing Networks. The main contribution is to assist the policy-maker on establishing Collaborative Manufacturing Networks of Batik SMEs in Indonesia. The final model found that Resource has a negative influence on willingness to collaborate with an estimated value -0.091; Trust has a positive influence on willingness to collaborate with an estimated value 0.54; Design has a positive influence on willingness to collaborate with an estimated value 0.34, but not significance. The results showed that Trust and Design are the driving factors of SME owners' Intention to Join the Collaborative Manufacturing Networks. © 2024 Qazvin Islamic Azad University. All rights reserved.