Academic journal article Academy of Marketing Studies Journal

Sme's Performance of Creative Industries Supporting Tourism in Indonesia: Market Orientation, Learning Orientation and Organizational Innovativeness as Determinants

Academic journal article Academy of Marketing Studies Journal

Sme's Performance of Creative Industries Supporting Tourism in Indonesia: Market Orientation, Learning Orientation and Organizational Innovativeness as Determinants

Article excerpt

INTRODUCTION

The contribution of the creative industries in the global economy spurred numerous empirical studies which have paid attention in many countries in the last decade (UNCTAD, 2016). Indonesia as one of the developing countries is also challenged to improve national competitiveness in the global marketplace. According to the Ministry of Trade Republic of Indonesia in the book of creative industry development towards the vision of creative economy 2025, Indonesia's creative industries can be grouped into 14 sub sectors, including:

* Advertising

* Architecture

* The art and antiques market

* Craft

* Design

* Fashion

* Video, film and photography

* Interactive games

* Music

* Performing arts; music, dance and theatre

* Publishing, printed and new media

* Computer services and software

* Television and broadcasting

* Research and development

Deputy of Research, Education and Development of Creative Economy Agency (BEKRAF) stated in (Tempo, 2016), creative industry contribution in the last year reached 642 trillion IDR or 7.05 percent of Indonesia's GDP. The biggest contribution comes from culinary as much as 32.4 percent, fashion 27.9 percent and craft 14.88 percent. In addition, in terms of human resources, the creative industry is the fourth largest sector with a contribution of 10.7 percent or 11.8 million people dominated by fashion, culinary and handicraft businesses. Given the fact shows that the quality of human resources is the mainstay that distinguishes creative industries from other industries. Creative industry needs human input in the form of knowledge-how and high skill (Booyens, 2012). Thus, the creative industry is more oriented to scale production in small quantities but requires a higher level of exclusivity and creativity.

The ability of human resources in this sector to produce creative and innovative products can increase the value and competitiveness of products in the global market as well as handicraft products such as embroidery and weaves. This research was conducted in West Sumatera as one of famous area with creative industry of embroidery and weaves in Indonesia. Previous research on the performance of SMEs in both developed and developing countries has been done (e.g. Beneke et al., 2016; Wang, 2016; Herath & Mahmood, 2013; Pandya, 2012). However, there are only few empirical study efforts dedicated to discuss the performance of SMEs in the creative industries' sector supporting tourism, especially embroidery and weaves, needs for further investigation.

The development of creative industries in addition to having an impact on business life and national economy, also impact on the image of the tourist destination. The empowerment of the local economy sector that is full of uniqueness and creativity can be a tourist attraction for visitors who want to see, know, feel or even have tourism support products in the area (Oskam & Boswijk, 2016); (Sutawa, 2012). This suggests that although both types of handicraft products need to preserve local Minangkabau cultural identity, product innovation through product modification such as motif designs tailored to the flexibility of the tastes of the target market can also increase the performance level of SMEs. Despite the number of empirical work concerning the drivers and outcomes of organizational innovativeness and performance, research that encompasses all the relevant constructs in comprehensive manner remains rather limited. The emergence of this phenomenon is encouraging authors to study the variables of market orientation, learning orientation and organizational innovativeness as an antecedent performance of SMEs in the creative industries supporting tourism in West Sumatra, Indonesia.

LITERATURE REVIEW AND HYPOTHESES DEVELOPMENT

Market Orientation and Learning Orientation

Throughout the 1990s, the concept of market orientation is conceived as the main attention in the marketing literature, for instance, (Narver & Slater, 1990; Kohli & Jaworski, 1990; Slater & Narver, 1994). …

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