Elsye Tandelilin et al., Collaborative Entrepreneurship and Group Commitment as a Strategy for Survival in the Pandemic Covid 19: A Case Study of SMEs in Bogo Village - Bojonegoro Regency- East Java (2020)

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Conference paper by Elsye Tandelilin, Karina C. Rani, Nikmatul I. E. Jayani and Noviaty K. Darmasetiawan of the University of Surabaya, in the Proceedings of the International Joint Conference on Arts and Humanities (IJCAH 2020), volume 491 of Advances in Social Science, Education and Humanities Research. It studies micro and small enterprises in Bogo village, Bojonegoro district, a center for moringa herbal products, whose mostly offline production and marketing were disrupted by the pandemic. Using qualitative field research based on conversations with and observation of informants, the authors find that collaboration and group commitment kept the businesses alive and that they began to recover. The paper notes Indonesia had 64,194,057 MSMEs in 2018.

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“Elsye Tandelilin et al., Collaborative Entrepreneurship and Group Commitment as a Strategy for Survival in the Pandemic Covid 19: A Case Study of SMEs in Bogo Village - Bojonegoro Regency- East Java (2020).” Original at www.atlantis-press.com. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/elsye-tandelilin-et-al-collaborative-entrepreneurship-and-group-commit-3bb1609a94/, SHA-256 2b8b70014783627248e9468b3d6870b6329a5c0cb00168287ddef4fba030556e.

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Advances in Social Science, Education and Humanities Research, volume 491
Proceedings of the International Joint Conference on Arts and Humanities (IJCAH 2020)

Collaborative Entrepreneurship and Group
Commitment as a Strategy for Survival in the
Pandemic Covid 19: A Case Study of SMEs in Bogo
Village - Bojonegoro Regency- East Java
Elsye Tandelilin1,*Karina C. Rani2Nikmatul I. E. Jayani2Noviaty K. Darmasetiawan1
1
Management Department, Business and Economics Faculty, University of Surabaya, Surabaya, Indonesia
2
Pharmacy Faculty, University of Surabaya, Surabaya, Indonesia
*
Corresponding author. Email: elsye.tandelilin@gmail.com

ABSTRACT
The Coronavirus (COVID-10) outbreak causes a global economic slowdown and hit hardest to micro and small
businesses. Most of them are shuttered and far more experiencing financial difficulties, raising questions, how they
will survive in this situation? Moringa plant is known as a beneficial plant to health. Various herbal medicines and
products are the development of Moringa. Bogo village-Bojonegoro district is one of the moringa plant centers, and
micro and small businesses (MSEs) producing many herbal products. During the pandemic, they have difficulty in
producing and marketing products that are mostly still based offline. This paper aims to explore the strategies used by
MSEs in the Bogo village to survive in the pandemic. This study uses a qualitative paradigm with a field research
approach. Direct conversations and observation of the informants' lives are the way to get detailed data. The results
showed that the collaboration strategy and group commitment carried out made MSEs in the Bogo village still survive
and begin to experience business recovery during this pandemic.

Keywords: Collaborative Entrepreneurship, Group Commitment, Micro and Small Enterprises

1. INTRODUCTION companies, such as constraints on capital, competence,
innovation [7].
The number of Micro, Small, and Medium
Enterprises (MSMEs) in Indonesia has increased from The pandemic COVID 19 since the beginning of
year to year. In 2011 the number of MSMEs is 2020 has made many micros, small and medium
52,764,750 increased to 56,534,592 in 2012. From 2014 enterprises experience liquidity difficulties, and many
to 2016, the number of MSMEs reached more than have gone bankrupt. A practical solution for the above
57,900,000, and in 2018 it reached 64,194,057. conditions is to undertake a collaborative strategy
Compared to the number of total enterprises in between MSMEs and building group commitment. The
Indonesia, the number is quite a lot, although the amount of collaboration between MSMEs and group
percentage is still relatively small compared to commitment is not a popular strategy for MSMEs. The
Indonesia's total population. (www.depkop.go.id). popular image of micro, small and medium
Recent evidence shows that micro, small and medium entrepreneurs that collaboration and commitment with
enterprises (MSMEs) provide a large portion of national other people's will jeopardize each MSMEs' business
income, contributing around 70-99% and job creation autonomy. Therefore, studying collaborative activities
worldwide [9]. It has even resulted in a sizeable increase and group commitment is seen more in understanding as
in GDP in most countries, although only a small small-scale cooperation.
increase in MSMEs' productivity [8]. On the other hand, A powerful strategy to facilitate the achievement of
the mortality rates of MSMEs are high also. An a vision is collaboration. It might be possible when
enormous variety of obstacles affect MSME's ability to entities work dependently [4]. Research conducted by
survive and compete in the market compared to large Koch, Martin & Nash, 2013 in Germany on the wine

Copyright © 2020 The Authors. Published by Atlantis Press SARL.
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Advances in Social Science, Education and Humanities Research, volume 491

business identified that effective regional collaboration Based on these phenomena, the paper aims is to
could help develop the brand identity and improve answer the following research questions: Can
business [4]. A study by Alvarez & Barney, 2001; collaboration strategies and group commitment make
Nakos et al., 2014 showed that most MSMEs conduct MSEs in Bogo village survive and thrive? The
collaboration with large companies. The collaboration is development of MSEs in Bogo village and collaborative
among MSEs need to done because MSME tends to lack entrepreneurship concepts are the contributions of this
bargaining power in collaborative practices with large research.
companies and will reduce the benefits of the
collaboration [17]. Therefore, MSME should collaborate 1.1. Collaborative entrepreneurship
with fellow MSME because one of the factors driving
the success of this collaboration is the similarity or [4]explains that collaboration theory consists of
linkage between MSMEs [2]. The creation of innovation generally accepted abstractions and principles. The
is one of the benefits obtained from collaboration observations from some parties and individuals working
among MSMEs and is that the presence of business together to develop an alliance strategy generated the
survival, growth, and sustainability [14]. theory. Based on the concept of collaborative
entrepreneurship, creating something economic value
The selection of micro and small enterprises to be that arises from new ideas created together that arise
studied taking from Bogo village-Kapas District- from sharing information and knowledge [5].
Bojonegoro Regency - East Java. Bogo Village is the Collaborative entrepreneurship is a process that involves
center for Moringaoleifera Lam, which has been sold the use of networks to deliver better decision-making
only in raw material form to consumers in the market activities when in business cooperation [16].
and intermediaries. Currently, various products from
Moringa leaves have available, for example, food and Entrepreneurship is a mechanism to develop
beverages. Based on our community service for two opportunities in a natural and communal environment
years in Bogo's village, several problems faced by that combines economic and social benefits (Patzelt&
MSEs were revealed, as follows: Shepherd, 2011). Personal economic gain is a crucial
motivator of sustainable entrepreneurship. In
1. The mindset of business people who are still collaborating, it is necessary to pay attention to several
oriented to meet the needs of their daily lives only. main factors (key factor of collaborative
They lack the ambition to become prominent entrepreneurship) because there are different
entrepreneurs. collaboration levels.
2. The Moringa tree planting system has unmanaged
so that the continuity of Moringa leaves as a raw 1.1.1. Individual Level
material for production is not guaranteed (supply
chain is not well established) Entrepreneurship gives individuals the ability to
pursue their dreams and personal desires in business
3. People use traditional and simple production collaboration formations [3]. The statement indicates
system and work individually. that entrepreneurial activity is related to meaning
4. Packing is still pure, and the marketing reach because it comes from individual self-awareness. There
network is still limited in the Bogo area and its are various entrepreneurial competencies needed for
surroundings. successful collaboration, such as lateral thinking,
intuition, knowledge. Creativity, leadership, and
5. Not all products produced have a Home Industry communication. The collaboration benefits include the
Product (PIRT) license. ease of obtaining market information, information on
6. There is no product standardization and manual changes in business conditions, and extent market
production network.

7. Limited competency of human resources so that 1.1.2. Community Level
innovation has not followed market dynamics,
and there is no management standard in managing The interaction between entrepreneurial activities
the business. and communal activities is known as the concept of
community-based business, which shows that a
8. Limited communication providers, making it
community pursues common goals to achieve business
difficult to do online marketing.
goals [14]. In developing countries, people, economies,
9. Access to locations that are quite far and not well and societies join together to promote entrepreneurial
organized activities that sustain societal well-being. People's
behavior in developing countries tends to be more
10. Pandemic conditions make sales decline
collective so that a collective approach to doing
dramatically.
business allows people to focus together on business

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opportunities [16]. Community-based companies help observes and participates in small-scale social activities.
improve developing countries' economic conditions by Researchers can also interact face to face with "real
creating solutions to social problems [15]. people" in the natural social order [12, p. 432]. Field
research requires direct conversation and observation of
1.1.3. Institutional Level the informants. Through direct and in-depth
involvement of the researcher in the form of direct
The government is a regulatory agency in contact with sources/informants/participants, theoretical
developing countries. They established business policies / literature studies only as initial information (not an
and provides programs that offer information on absolute basis for making research questions), and
business practices. The government provide various research results that are following the experiences of the
collaboration with MSMEs to help them improve such informants.
as business funding/loan, training, and assistance to
improve the competence of MSMEs, providing facilities The research focuses on examining the ways of
and infrastructure, and facilitating licensing thinking, behaving, interacting, culture, and ways of
arrangements is the government's role in supporting doing business of the people in Bogo Village,
entrepreneurial development [16]. Bojonegoro District. This method allows obtaining the
accurate and definite results, due to the researcher's
involvement for two years with the community in the
1.2. Commitment to the Group
village. Field research allows researchers to explore
Employee commitment is more associated with broader social conditions, subcultures, and aspects of
organizational commitment. Various personal factors, social life. The steps in field research are as follows: (1)
organizational factors, and non-organizational factors Prepare oneself, read the literature and defocus; (2)
affect the commitment to the organization. The Select a site and gain access to its field; (3) Enter the
definition of organizational commitment is (1) a strong field and establish social relations with members; (4)
desire to remain a member of a particular organization; Adopt a social role, learn the ropes and get along with
(2) a willingness to exert high levels of effort on behalf members; (5) Watch, listen, and collect quality data; (6)
of the organization; and (3) a definite belief in, and Disengage and physically leave the setting [12, p. 439].
acceptance of, the values and goals of the organization The method for collecting data uses multiple sources
[11]. Based on the definition of organizational to support the Validity and Reliability of the data
commitment, it is then adapted to define commitment to obtained. The development of theory and sampling
the group. The definition of commitment to the group is time, situation, type of event, location, type of person,
as group feelings, sensations, and beliefs held by or context of interest are guiding field research methods.
members of the group. Group members who have the Reliability in field research is carrying out through
commitment, trust, and are proud of what the group internal consistency and external consistency [12, p.
does, show a high level of loyalty and have a deep sense 247-248].
of friendship [6]. Therefore team members will act
according to a sense of responsibility above all else to
help their team [13]. 3. RESULT AND DISCUSSION
Commitment is an essential component in the group
process because commitment is a feeling of identifying 3.1. Collaborative Entrepreneurship
members with their group and the level of group unity
in carrying out goals and achieving goals [1]. The collaboration strategy and group commitment
Commitment is also an emotional link between the are the right solutions to overcome the problem of
individual and the group. Various researchers propose MSEs in Bogo village. Various activities are carrying
that a variety of things drives strong member out to encourage MSEs to collaborate and encourage
commitment. The basic need for personal development commitment from group members. Initial efforts were
leads individuals to have a greater sense of commitment focusing on changing the mindset of MSEs through
to the group [10]. In general, people who have strong training programs, such as collaborative
feelings of commitment with their group tend to think entrepreneurship training, the power of group
more about fellow group members' welfare. As a result, commitment training, entrepreneurial success training,
they try hard to solve various group problems and find and sharing forums. Afterward, the MSEs are inviting to
the best ways to solve group problems [1]. collaborate at the individual level. This process's first
stage is challenging because each entrepreneur still
chooses to work alone and sees other MSEs as
2. METHOD competitors. Each entrepreneur makes their product in
their home and their standard also. As a consequence,
From among the qualitative study approach, we used non-standard products and non-standard quality. To
a field research approach, which the researcher directly solve the problem, we implement various training,

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Advances in Social Science, Education and Humanities Research, volume 491

mentoring, and discussions. Finally, the entrepreneurs according to simple accounting principles, (7) sales
agreed to collaborate according to the business they increase.
were running.
The benefits of collaboration felt by MSEs in Bogo's
After the individual collaboration is running well, village are in line with the results of research by (Gajda,
the next step is community collaboration. Because most 2004), which states that in a collaborative
entrepreneurs are women, they establish the house of entrepreneurship approach, individual skills are
production, called Kelompok Wanita Tani (KWT) "SRI integrated into a group activity to make the innovation
REJEKI," which became a pioneer in the processing and process bigger. Another result is also in line with
development of moringa - based food products. They research conducted by Peredo and Chrisman [15]
produce various processed products based on moringa. demonstrate that community-based enterprises help
The collaboration results in creativity, such as inventing improve economic conditions by creating solutions to
better product designs, better marketing systems, and social problems.
networking and leads to increased product sales. The
absence of clear and systematic SOPs results in a non 3.2. Commitment to the Group
product standard and non product quality. Through the
collaboration, clear SOPs were made and applied to In order for collaboration to run well, each group
moringa production houses. The sanitation and hygiene member's commitment is necessary to achieve common
aspects are also aware of the production house. The goals. After the collaboration is carried out by MSEs in
improvement of raw material quality is proposing for Bogo's village, members' commitment to the group is
managing inventory and production capacity. Stock not automatically forming. It takes a long time to build a
control and production plans have started to be carrying commitment. One of the methods used to build group
out gradually so that production continuity is commitment is a joining responsibility strategy. The
maintained. work of one person is a shared responsibility. It
describes, if there is an error or loss in the working
Finally, collaborative entrepreneurship at the group, this will be the joint responsibility of all group
institutional level builds with the government, especially members. The method makes each member working
the forestry service, the agriculture service, the carefully and responsibly. Besides, a strong sense of
cooperative and Micro, Small and Medium offices, the kinship is built among group members so that each of
health department, and universities, such as the them considers the other group members to be his own
University of Surabaya. Collaboration with various family. The strong sense of kindship is also to ensure
agencies resulted in various assistance: the moringa that no group member leaves the group. A sense of
seeds, land for planting moringa trees, and product empathy is also developing among group members.
licensing. The collaboration with universities resulted in Each group member feels the problems experienced by
mentoring and training in appropriate technology to help other group members and is willing to help overcome
develop processed products, product marketing, and them. The group's commitment is carrying out because
business management (such as simple bookkeeping with they do not want to be isolated by the group and their
the SI APIK program, supply chain, and inventory community and cultural factors, namely the feeling of
system). Besides, collaboration is also carrying out with reluctance, which requires them to remain in their
Village-Owned Enterprises (BUMDES), especially group. The benefits of the commitments formed by
product marketing. The institutional program of village- MSE groups in the village of Bogo are: (1) prioritizing
owned enterprises (BUMDES) is one of the official group interests, (2) helping each other group members
government programs to help small businesses in the who experience problems, (3) trying to prosper together,
villages to survive and develop. Financial assistance (4) each member the group does work with a sense of
through this institution is very much taken care of by the responsibility and (5) jointly overcome the problems
government, passed down through the village budget that arise during the COVID pandemic 19. The results
(AD) every year. The benefits obtained after of this commitment are following the Haskins et al. [6]
collaborating are (1) the creativity emerging a variety of argument that group members who have the
food products (moringa martabak, moringa sticks) and commitment, trust, and pride of what the group does
beverages (moringa leaf powder, moringa leaf tea, and show a high level of loyalty and have a deep sense of
moringa seeds) produced, (2) creating a home friendship. Group members will also act with a sense of
production with production standards to make better responsibility above all else to help their group [13].
products, (3) the establishment of "Kelorita" houses as
outlets and restaurant, (4) the division of job
descriptions for each individual in the group (work 4. CONCLUSION
divided following each member competencies), (5) the
reach of marketing has become more extensive, (6) Collaborative entrepreneurship at the MSE level is
bookkeeping begins to be recorded and neatly arranged still rarely done because it collides with MSEs
entrepreneurs' mind set who see fellow businesspeople

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