Competency Mapping and Network Position for Sustainability in SMEs: A Decision Tree Approach

This research explores the impact of competency mapping and network position on the sustainability of small and medium enterprises (SMEs) using a decision tree approach, specifically the C4.5 algorithm. Through a survey of 203 batik SMEs in Indonesia, we assessed how external relationships and partnership capabilities contribute to sustainable business practices. The decision tree model identifies key factors that influence sustainability, including frequency of being a source of information to external partners, stability of relationships, and age of the organization. The C4.5 algorithm achieved 80% accuracy in predicting sustainability, highlighting the importance of strong network positioning and effective competency mapping. These findings suggest that SMEs should prioritize enhancing their role as reliable information providers, fostering stable long-term partnerships, and adopting environmentally sustainable technologies. This study offers practical insights for SMEs in emerging markets to improve their sustainability practices.