en بهبود بهره وری Productivity Improvement پژوهشي Research <div style="text-align: justify;"><span style="font-size:11pt"><span style="line-height:normal"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span new="" roman="" style="font-family:" times="">Micro- and small-scale industries (MSIs) are the pillars of Indonesia&rsquo;s national economy. MSIs face several issues as their businesses grow. Performance evaluation is one way to identify MSI&rsquo;s effectiveness. The research objective is to evaluate the MSI&rsquo;s performance in East Java Province, Indonesia. It is an effort to improve the MSI&#39;s performance. The stepwise modeling approach (SMA) and data envelopment analysis (DEA) methods were applied to identify MSIs&#39; effectiveness, determine the classification of inefficient MSIs, and formulate an inefficient MSI development strategy. In the existing SMA concept, the remaining variables in the END step are the selected variables (model X-Y). This study proposes that variables from the initial step to step n+1 are considered in creating efficiency score models. There are five proposed models, including model 4X-3Y, model 3X-3Y, model 3X-2Y, model 2X-2Y, and model 2X-Y. The research result indicated that the proposed ES model 3X-3Y is the best. 54% inefficient and 46% efficient DMUs make up the model 3X-3Y. Six cities and fourteen regencies make up the inefficient SMI classification. Cluster_A (50%) consists of four cities and six regencies. Cluster_B (25%) consists of two cities and three regencies. Cluster_C contains two regencies (10%). Cluster_D comprises three regencies (15%).</span></span></span></span></span></div> <span style="font-size:11pt"><span style="line-height:normal"><span style="font-family:Calibri,sans-serif"><span style="font-size:12.0pt"><span style="font-family:"Times New Roman",serif"></span></span></span></span></span><br> &nbsp; Performance evaluation,Stepwise modeling approach,Data envelopment analysis,Micro- and small-scale industries 1 16 http://ijiepr.iust.ac.ir/browse.php?a_code=A-10-2986-1&slc_lang=en&sid=1 Erni Puspanantasari Putri erniputri@untag-sby.ac.id 1800319475328460013309 1800319475328460013309 Yes Department of Industrial Engineering, Universitas 17 Agustus 1945 Surabaya Erwin Widodo erwin@ie.its.ac.id 1800319475328460013310 1800319475328460013310 No Department of Industrial Engineering, Institut Teknologi Sepuluh Nopember, Surabaya, Indonesia Jaka Purnama jakapurnama@untag-sby.ac.id 1800319475328460013311 1800319475328460013311 No Department of Industrial Engineering, Universitas 17 Agustus 1945 Surabaya, Surabaya, Indonesia Bonifacius Raditya Sri Pramana Putra radityabf@gmail.com 1800319475328460013312 1800319475328460013312 No Department of Informatics Engineering, Universitas 17 Agustus 1945 Surabaya, Surabaya, Indonesia Agatha Hannabel Avnanta Puteri d.agatha44@gmail.com 1800319475328460013313 1800319475328460013313 No Department of Industrial Engineering, Universitas 17 Agustus 1945 Surabaya, Surabaya, Indonesia