Nunukan District Government Support Strategy to Increase the Contribution of Leading Industries Through Regional Product Optimization
DOI:
https://doi.org/10.61255/jeemba.v4i5.1021Keywords:
Government support, Leading industries, MSMEs, Nunukan regency, Optimization of regional productsAbstract
Purpose – This study examines the effects of Government Support and Optimization of Regional Products on the Contribution of Leading Industries in Nunukan Regency, a strategic Indonesian border region facing infrastructure, financing, market-access, and product-development constraints.
Design/methodology/approach – The study employed an explanatory sequential mixed-methods design. Quantitative data were collected from 93 respondents consisting of MSME actors and local government representatives and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS. The quantitative findings were subsequently supported and contextualized through semi-structured interviews with 10 key informants comprising five local government representatives and five MSME actors.
Findings/Results – Government Support has a positive and significant effect on the Contribution of Leading Industries (β = 0.591; t = 4.552; p < 0.001) and on Optimization of Regional Products (β = 0.575; t = 8.360; p < 0.001). However, Optimization of Regional Products has a positive but non-significant effect on the Contribution of Leading Industries (β = 0.196; t = 1.338; p = 0.181) and does not significantly mediate the relationship between Government Support and leading industries (β = 0.113; t = 1.238; p = 0.216). Interview findings indicate that limited financing, weak market access, insufficient standardization, innovation constraints, and limited value-chain integration reduce the effectiveness of product optimization.
Originality/Value – The study provides evidence from a border-region context and highlights the need to integrate government support with certification, branding, financing, innovation, market expansion, and institutional collaboration to strengthen leading industries.
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