Clustering the micro, small and medium enterprises (MSMEs) in Yogyakarta City based on technology readiness index 2.0 using K-Means method

• Main Authors: Astuti, Amalia Yuli, Adzaningtyas, Riri Dwi, Akbar, Nurul
• Format: Conference Proceeding
• Language: English
• Subjects: Algorithms; Clustering; Economic development; Food processing; Pandemics; Pioneers; Small & medium sized enterprises-SME; Technology utilization
• ISSN: 0094-243X; 1551-7616
• DOI: 10.1063/5.0104939

MSMEs as one of the economic drivers and have important role in local economic growth. As pandemic condition that came in 2019, technology become an essential part of activities. If pandemic condition is continuing, MSMEs have to adopt the technology. In Yogyakarta city, there are many MSMEs that came from various backgrounds. But the segmentation of MSMEs’ technology readiness has not been examined. This research took sample of the MSMEs in the Yogyakarta city. The purpose of this research was to clustering the MSMEs with Technology Readiness Index (TRI) 2.0. The methodology used is a survey of 180 MSMEs in the fields of food processing and clothing convections. The clustering was computed with K-Means algorithm in R software. The cluster of MSMEs based on five groups (explorers, pioneers, skeptics, paranoids, and laggards) from TRI's user segmentations. The results of the clustering were found only two groups from the sample and the groups were pioneers and skeptics. The number sample in the pioneers group was 59% and the skeptics was 41%. The pioneers have positive and little negative perceptions about using technology. The skeptics didn't oppose technology but have low enthusiasm.