Sustaining Local Food Enterprises Through Social Learning: Comparative Strategic Insights from Malaysia and Indonesia

Abstract

Small food enterprises (SFE), forming part of small-sized enterprises play a pivotal role in advancing economic development within developing economies. Their operations generate employment and contribute to social development and national progress. Nevertheless, these enterprises face enduring structural and operational constraints that limit scalability, competitiveness, and long-term sustainability. The purpose of this study is to examine the internal and external challenges encountered by SFE in Malaysia and Indonesia, while assessing converging patterns that can guide the formulation of effective policies and targeted interventions for sustainable growth. This research stems from a joint initiative between Universiti Teknologi MARA (UiTM), Universitas Singaperbangsa Karawang (UNSIKA), and Universitas Padjadjaran (UNPAD), conducted via international service-learning projects in both countries. Data were collected through interviews, examination of online platforms, and analysis of strategic management-focused business advisory reports covering three Malaysian and three Indonesian food-related enterprises. The findings reveal strong owner commitment, emphasis on product quality, and customer-centric practices. However, internal barriers and external pressures continue to challenge growth. Despite variations in operational structures and government support, both nations’ SFEs confront fundamentally similar obstacles. This study enriches limited literature and provides valuable insights for policymakers seeking to strengthen resilience, advance digital transformation, and promote sustainable development of local food manufacturers. Importantly, the study introduces the concept of social learning, referring to the systematic dissemination of research findings and strategic recommendations to participating business owners. This feedback mechanism enables enterprises to apply informed insights for continuous improvement, thereby enhancing their adaptability and contributing to the broader sustainable development of SFEs in both nations.