Exploring Production Determinants in Aceh's Clothing SMEs

This study examines the influence of capital, labor, raw materials, and technology on production in Aceh's small clothing industries across 23 districts/cities from 2018 to 2022. Based on the results of panel data testing using the Common Effect Model, this study found that labor, raw materials and technology have a significant effect on the production of small clothing industries in Aceh. While the capital variable has no effect on the production of small clothing industries in Aceh. Implications extend to policymakers, who should prioritize skill development, raw material access, and technological innovation. Industry practitioners can enhance labor, optimize materials, and integrate technology for competitiveness. Further research could explore capital's role and specific technology and labor impacts. These findings inform strategies for sustainable growth in Aceh's small clothing industry.