Development Strategy in the Blacksmith Industrial Area Using Interpretative Structural Modelling

Abstract

Purpose– This case study was conducted on Blacksmith industrial center area on the local industrial sectors. However, various challenges involved technological limitations, lack of skilled labor, and minimal infrastructure support have become obstacles in the development of this area. This study aims to identify the key elements in the development of the industrial center area using the Interpretative Structural Modelling (ISM) method.

Design/methodology/approach– This study adopted the case study using qualitative method. Then, this research has five important elements in its development strategy through Interpretative Structural Modelling (ISM): actor elements, objective elements, constraint elements, need elements, and benchmark elements, each of which has several sub elements.

Findings– The ISM analysis results show that the development strategy for industrial center is based on the following five key elements: (1) the key actor elements are the local government, industry players, and the surrounding community. (2) the key objective elements are increasing product competitiveness, improving product quality, increasing market share, and increasing production capacity. (3) the main constraint elements are limited access to raw materials and limited financing access. (4) the key requirement element is business financing and capital. (5) the main benchmark elements in the industrial area development strategy are increased production, labor absorption, increased community income, and increased number of investors and investment.

Originality- Interpretative Structural Modelling able to provide development strategy for industrial center area for local community.