Published date: Mar 01 2018

Journal Title: KnE Life Sciences

Issue title: The 3rd International Conference on Agro-Industry 2016 “Competitive & Sustainable Agro-Industry" (3rd ICoA 2016)

Pages: 117-127

DOI: 10.18502/kls.v4i2.1663

Moh. Wahyudinmoh.wahyudin@ugm.ac.idDepartment of Agro-Industrial Technology, Faculty of Agricultural Technology, Gadjah Mada University, Jl. Flora No.1 Bulaksumur 55281

Henry YuliandoDepartment of Agro-Industrial Technology, Faculty of Agricultural Technology, Gadjah Mada University, Jl. Flora No.1 Bulaksumur 55281

Marketing brings a consequence that producers distribute their products to consumers. There are many kinds of a medium that producers can use to distribute their products, one of which is retailer business. In governance, retailer business can be classified into two types, namely traditional retailer and modern retailer. In the process, there are worries about the existence of traditional retailer as a result of the strengthening of modern retailer. Therefore, it is important to pay special attention to the traditional retailer to grow and evolve along with the growth and development of modern retailer, so that traditional retailer marketing can run optimally. This study aims to formulate the strategy for traditional retailer to keep sustainability concerning to the proper implementation of knowledge management through the developing of socio- entrepreneurship. This research uses SEM (Structural Equation Modeling) to measure the correlation between independent and dependent construct in term of increasing knowledge management of traditional retailer.

Based on the result analysis, competitive advantage in traditional retail is affected by the choice of strategies implemented by retailer. However, the implemented strategy is not optimal because it is not supported by the implementation of a good knowledge  managements, especially in terms of accessibility to knowledge and practices required in the retail business. Traditional retail are difficult to gain an access to training and mentoring on strategies and techniques to manage retail business professionally in order to achieve a sustainable competitive advantage. When traditional retail want a more optimal to achieve a competitive advantage, they should improve their ability in implementing the management knowledge systematically, for example, building an association of traditional retail with the main vision to organize a training program or mentoring about strategy and technique management of retail business.

Keywords: Traditional retailer, management knowledge, competitive advantage.

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