Track: Operations Management

Abstract

In Indonesia, SMEs in the manufacturing sector are around 16.65 percent of the existing SMEs. The processing industry is a variety of production activities that change the form of raw materials into finished or semifinished goods. At this time, the Covid-19 pandemic has resulted in SMEs in the processing industry being unable to survive only by exploiting existing businesses. Changes in demand and supply chains, require the industry to explore new things while continuing to develop the business that is currently owned. This will be difficult for SMEs in Indonesia, because in general, SMEs are family companies, with limited resources. To overcome the shortage of resources, SMEs need to collaborate with external partners and form social networks. This study uses a survey method to analyze the influence of networks on the competence of exploration in SMEs in the processing industry. From 100 respondents, it was found that social networking has a positive effect on the competence of exploring innovation. This happens because from social networks, SMEs can obtain additional resources, information, and new knowledge so that they can strengthen exploration competencies.