As the international trading competition has begun to arise, Batik Small Medium Enterprise (SMI) are required to maintain and improve its competitiveness by exploring the innovations that can generate value added to batik product. Although many studies provided suggestion regarding innovation for batik industry, there’s problem in determining which innovation is bringing important added value. Moreover, many Batik SMI players have lack of knowledge about value creation in performing innovation. This study attempts to determine which innovation should be prioritized for batik SMI based on value chain in batik production proceses. The first step is determining activities in Batik SMI then divided the activities into primary and support activities. The next step was identifying possible innovation opportunities through systematic literature review where 8 innovations were obtained. The innovations then mapped to Value Chain Activities model. The innovation related to primary activity is suggested to be prioritized. This study indicates that the use of natural coloring material, the application of electric stove and solar home system, the use of ergonomic stool, electric canting, the use of wet on wet coloring technique, and the implementation of e-commerce for promotion and selling-buying activities can be considered to be innovation priority in Batik SMI

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Mrs. Afrin Fauzya Rizana