Empowering Network Management and Performance Quality in the Development of Business Organizations A Case Study on SMEs Cluster in Balikpapan, East Kalimantan, Indonesia

Abstract

The purpose of research is to determine the pattern and strategy of organization development (OD), especially SMEs Clusters as a business organization. The research took place at Balikpapan City and was conducted on three types of SMEs Clusters: Batik Cluster, Food Cluster and Handicraft Cluster. The number of samples chosen within the cluster sampling design of this research was 76 respondents and strengthened by 9 key informants. Social Network Analysis (SNA) was applied to analyze data. This research found that organization development, primarily in SMEs Cluster, could be done through empowering four variables: first, strengthening network management by maximizing centrality approach diversity, namely indegree centrality, outdegree centrality, closeness centrality, betweenness centrality, eigenvector centrality; second, developing the performance of business organizations with four indicators, among others business plan, business management, specific skill of workforce and business report; third, by involving institutions at the provincial and district or municipality level.