Strategic Resource Orchestration for Internationalization Readiness: Evidence from Batik SMEs in Indonesia

Abstract

This study examines how strategic resource orchestration shapes internationalization readiness among Batik small and medium-sized enterprises (MSMEs) in Indonesia. Drawing upon the Resource-Based View (RBV), Dynamic Capabilities, and Strategic Orchestration perspectives, the research investigates how cultural resources, sustainability orientation, and digital agility contribute to SMEs’ preparedness for global market integration. A qualitative multi-site case study was conducted in two major batik clusters in Madura, Indonesia, involving in-depth interviews, observations, and document analysis. The findings reveal that Batik MSMEs possess valuable cultural assets and an emerging sustainability orientation that enhance their market legitimacy. While digital adoption has improved market reach and customer engagement, capability development remains largely individual and fragmented. The absence of collective coordination mechanisms limits the transformation of localized strengths into cluster-level competitiveness. This fragmentation creates a strategic disconnect between resource potential and international market readiness.The study proposes a strategic orchestration model emphasizing collective digital platforms, standardized sustainability practices, and institutional coordination as key mechanisms to strengthen internationalization readiness. Theoretically, this research extends RBV and Dynamic Capabilities from firm-level analysis to cluster-based orchestration in traditional MSMEs. Practically, it highlights the importance of collaborative governance in preparing culturally embedded MSMEs for global value chain integration.