Critical Success Factor of Advanced Manufacturing Technology Implementation on Small Medium Enterprise in Indonesia

Abstract

The study discusses the factors which influence the implementation of advanced manufacturing technology (AMT) on small medium enterprises (SMEs) of food, beverage and herb which located in Indonesia. It was also discusses on the effect of the implementation of AMT on the SMEs performance. The respondents of this research are the owner of the enterpries. Tests and analysis of the research model were performed using SmartPLS program. The research result shows that the characteristics of the organization, monitoring, and strategic alliances affect the implementation of AMT, and also the implementation of the AMT affects the SMEs performance. Keywords: Advanced Manufacturing Technology, Small Medium Enterprise, Indonesia JEL Classifications: L25, L60, N65