Design Thinking as a Diagnostic Tool for Family-Owned MSMEs: A Qualitative Case Study of Pasundan Snack, Purwokerto, Indonesia

Abstract

Micro, small, and medium enterprises (MSMEs) in Indonesia often expand more rapidly than their management systems, especially when ownership, leadership, and employment are closely tied to family relationships. This study explores how a human‑centered design thinking approach could uncover and address organizational weaknesses in a family‑owned snack retailer, Pasundan Snack, located in Purwokerto, Central Java. Employing a qualitative single‑case design, the research followed five stages in design thinking process: empathize, define, ideate, prototype, and test. Data were gathered through semi‑structured hybrid interviews with five informants representing four stakeholder groups (owner, employees, supplier, and customer), then analyzed using empathy maps, customer journey mapping, affinity diagrams with dot voting, and 5 Whys analysis. While initial screening suggested weak digital marketing as the main issue, the empathize and define stages revealed a deeper challenge, that the absence of formal organizational instruments, rooted in the owner’s limited managerial exposure and reliance on family‑based rather than competency‑based placement. Together with the owner, the team prioritized toolkits comprising an organizational structure, four standard operating procedures (SOPs), workflow charts, and job descriptions. In the testing stage, the owner viewed the toolkits as constructive, though implementation remained partial and gradual due to the scarcity of competent family members and the need to balance established practices with new systems. These findings indicate that design thinking could serve as a method for reframing problems faced by MSMEs, while also underscoring that the professionalization of family-owned enterprises must be undertaken gradually in order to achieve sustainable and participatory change.