Abstract

Tri Siwi Agustina, Elsyahfira Nabilla Ammary

Innovation must be done by entrepreneurs to be able to survive in the midst of business competition. This study examines the product innovation and process innovation of Madura batik on Madura batik entrepreneurs in Surabaya because there have not been many studies on this topic. Data collection method in this research are interviews and observations. Observations were done at the place of business owned by informants who are Madura batik entrepreneurs. The results showed that product innovation in Madura batik were patterns, motifs, colors, and product diversification. While the innovation processes on Madura batik are manufacturing techniques and equipment. Madura batik entrepreneurship innovation sources come from two sources, there were internal sources and external sources. Internal source comes from entrepreneur. While external source comes from customer or market, social change, internet, and the environment. Innovation barriers that faced by Madura batik entrepreneur were lack of innovation structure, resistance of change, shortage of resources, and lack of collaboration. Product innovation and process innovation implemented by Madura batik entrepreneur is entrepreneur centric because employees who work in Madura batik entrepreneur business place have not been fully involved in the innovation process. The conclusion of this research is that entrepreneurship as an aspect of human resources in the Madura batik industry is the main foundation for the success and sustainability of Madura batik product innovation and process innovation. To achieve sustainable innovation the entrepreneur must optimize all the resources, including human resources, that is employees. So, it is important for entrepreneur to involve their employees to such training to improve their skill and knowledge in batik for the sake innovation in entrepreneur’s business.