PERAN KEAHLIAN PELAKU USAHA DALAM MENINGKATKAN VALUE ADDED PADA PRODUK HASIL KERAJINAN TANGAN UKMDI KALIMANTAN TENGAH

Abstract

The purpose of community service activities is to increase the income of handicraft businesses made by adding products at Plangka Raya SMEs, by testing product quality in encouraging purchase decisions. The research applies the dynamic capability theory to synergize with the business environment which also strengthens the research structure in the relationship between product quality and purchase decisions. The research method is an associative-quantitative research approach. The population and sample in this study are the handicraft community in Dipalangka Raya. The number of respondents is 100 people who are regular customers of SME handicraft products in Central Kalimantan. The analysis tool used in this study is Partial Least Square (PLS) with the Structural Equation Modelling (SEM) approach. The results of this study show that product quality has a significant positive effect in increasing purchasing decisions. The implication of the results is that the importance of product quality drives purchasing decisions inseparable from the theory of dynamic capability, in an uncertain business environment so that business units (SMEs) are able to survive. In the next research, digital marketing variables can be added as a promotional tool that is relevant to the progress of the current business environment.