Innovation to Achieve Sustainable Competitive Advantage of Processed Fishery Products Sector in Central Java | ||
| Egyptian Journal of Aquatic Biology and Fisheries | ||
| Article 28, Volume 28, Issue 6, November 2024, Pages 519-531 PDF (317.24 K) | ||
| DOI: 10.21608/ejabf.2024.392256 | ||
| Author | ||
| Yusef et al. | ||
| Abstract | ||
| The fisheries sector in Indonesia plays a vital role in the country's economy, making it the second-largest producer globally, after China, and fulfilling 25% of the world's seafood demand. Between 2019 and 2023, Indonesian fisheries exports showed positive growth, achieving a surplus of USD 5.63 billion in 2023, with key exports including shrimp, tuna, and squid. However, despite this success, Indonesian products face challenges in international markets due to limited innovation. Central Java, one of Indonesia's major fisheries exporters, has experienced fluctuating export values, primarily because of weak competitiveness and the lack of value-added products. Optimizing natural resources through market-oriented product innovation is essential to overcome these challenges. A market-oriented approach is crucial for enhancing the value of Indonesian fisheries exports, which include fresh, frozen, canned, dried, salted, smoked, fermented, cooked, and surimi-based products. Ensuring product standardization is equally important to meet the strict regulations of destination countries. Companies should implement a Sustainable Competitive Advantage (SCA) analysis using the VRIO framework (Valuable, Rare, Inimitable, and Organizational) to achieve long-term profitability and competitive advantage. This strategy aims to bolster the competitiveness of processed seafood products in Central Java to meet global market demands. Canned tuna and swimming crab products gain a premium status by adopting sustainable practices and certifications like the Marine Stewardship Council (MSC) and eco-labelling. Certified sustainable tuna fetches a higher market price, underscoring the value of sustainability. Additionally, a well-organized supply chain gives canned crab a competitive edge globally. Policies that promote sustainability in swimming crab fisheries also help producers maintain an advantage. Meanwhile, although the milkfish products have only a temporary edge due to their easy replication, Central Java's traditional processing methods and cultural significance add a unique value. | ||
| Keywords | ||
| Central Java; Innovation; Processed fishery products; Sustainable competitive advantage | ||
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