The Effect of Technology and Company Characteristics on Firm’s Survival: Case Study of Indonesian Manufacturing Industry

Aldizah Dajustia Hutami, Dyah Wulan Sari


Facing globalization and industrial revolution 4.0 requires companies to continue innovation to maintain their existences. Innovation can be carried out well if the company can absorb and apply the latest technology to increase the efficiency of its business. Firms that are unable to adapt to technology will not be able to compete with their counterparts. Therefore, this research was conducted to see the effect of technology, the firm's characteristics (size and location), and productivity (productivity and company profit) on the firm's survival. Using logistic regression, this study shows that technology, the firm's size, and productivity have a significant positive effect on the firm's survival. The location has a significant negative impact on the firm's survival, and profit does not significantly affect the firm's survival. The Hosmer and Lemeshow Test show that the model used in this study is fit for estimating all variables.


Firm’s survival, Manufacturing industry, Technology, Logistic Regression

Full Text:



Agarwal, R., & Audretsch, D. B. 2001. Does entry size matter? The impact of the life cycle and technology on firm survival. The Journal of Industrial Economics, 49(1), 21-43.

Audretsch, D. B. (1991). New-firm survival and the technological regime. The review of Economics and Statistics, 441-450.

BPS. 2017. Indikator Industri Manufaktur Indonesia 2017. Jakarta:BPS.

Disney, R., Haskel, J., & Heden, Y. 2003. Entry, exit and establishment survival in UK manufacturing. The Journal of Industrial Economics, 51(1), 91-112.

Doms, M., Dunne, T. & Roberts, M. J. 1995. The role of technology use in the survival and growth of manufacturing plants. International Journal of Industrial Organization, 13 (4), 523-542.

Dunne, P. & Hughes, A. (1994). Age, Size, Growth and Survival: UK Companies in the Late 1980s. Journal of Industrial Economics, 42 (2), 115-140.

Febriani, S. R. (2016). The Impact Analysis of Raw Material Price on Firm Survival. Signifikan: Jurnal Ilmu Ekonomi, 5(2), 149-162.

Geroski, P. A. 1995. What Do We Know About Entry? International Journal of Industrial Organization, 13 (4), 421-440.

Harlan, J. (2018). Analisis Regresi Logistik. Jakarta: Gunadarma.

Pérez, S. E., Llopis, A. S., & Llopis, J. A. S. (2004). The determinants of survival of Spanish manufacturing firms. Review of Industrial Organization, 25(3), 251-273.

Silalahi, S. A. F. (2014). Kondisi Industri Manufaktur Indonesia dalam Menghadapi Globalisasi. Jurnal Ekonomi dan Kebijakan Publik, 5(1), 1-13.

Stearns, T. M., Carter, N. M., Reynolds, P. D., & Williams, M. L. (1995). New firm survival: industry, strategy, and location. Journal of business venturing, 10(1), 23-42.

Sutopo, I. (2011). Produktivitas dan Ketahanan Bisnis Industri Kecil (studi empiris industri batik tulis trusmi kecamatan plered kabupaten cirebon). Jurnal Dinamika Keuangan dan Perbankan, 3(1).

Wulandari, L. D. (2012). Analisis Dampak Impor Cina terhadap Kebertahanan dan Pertumbuhan Industri Tekstil dan Produk Tekstil Indonesia. Jurnal Ekonomi dan Pembangunan Indonesia, 13(1), 90-108.


Copyright (c) 2022 Media Trend

Creative Commons License

Mediatrend © 2015 - Journal of Economic & Development Studies | Development Economics Program - Faculty of Economics and Bussiness, Trunojoyo University