Profiling Condition of MSME as an Initial Step in Improving Business Processes to Increase the Competitiveness of Agricultural MSMEs

Faculty of Computer Science, Jember University, East Java, Indonesia

^* Corresponding author: diah.retnaniw@unej.ac.id

Abstract

A systematic approach to company profiling can be used to identify opportunities for improvement and enhance the competitiveness of MSMEs, particularly in preparation for the ASEAN Economic Community. This study applied a mixed-methods approach to profile livestock MSMEs in Lumajang, Indonesia. This study examined internal conditions using a business process maturity model and evaluated readiness for technology adoption. Competitiveness was analysed externally using Porter’s Five Forces framework. Data collection in this study involved structured interviews, document analysis, and field observations. The study’s findings showed a competitiveness score of 5.17 on a 1–7 Likert scale, indicating moderate market power. The business process maturity assessment showed an ad-hoc level, characterized by informal and reactive processes. These results highlight critical gaps in process standardisation and strategic alignment, underscoring the need for systematic improvement and targeted technology integration. This study generated information in the baseline profile through evidence-based interventions, guiding process reengineering, and supporting decision-making for enhancing the competitiveness of MSMEs operating in a dynamic economic environment.