Academic journal article International Journal of Entrepreneurship

Breakthrough in Indonesian Creative Industry through Soft Innovation

Academic journal article International Journal of Entrepreneurship

Breakthrough in Indonesian Creative Industry through Soft Innovation

Article excerpt

INTRODUCTION

Innovation is interpreted as a successful exploit of new ideas (UK Trade and Industry Department, 2003). This implies that there is no limit to exploiting new ideas. Exploitation of new ideas can be done either on the improvement of functional products, as well as nonfunctional products. Another statement defines innovation as 'the implementation of a new or improved product, process, new marketing method or a new organizational method in business practices, workplace organization or external relations' (OECD and Eurostat, 2005). Under the definition, it is understandable that the minimum requirement to be said to be an innovation is when the product, process, marketing method or organization method is completely new (or significantly increased) for the company.

Based on these definitions can be understood that the minimum requirement for an innovation is said to be the current product, process, marketing method or organizational method is completely new (or significantly improved) to the firm. Some literature and innovation-related research results also explain the shift in the meaning of innovation. Postrel states in his book "The Substance of Style: The Rise of Aesthetic Value is Remaking Commerce, Culture, and Consciousness" that aesthetics are an increasingly important element in society, and people not only care about the functionality of the product but also the appearance and nuances (Postrel, 2004).

Other studies confirm the importance of aesthetics (as compared to functionality) in product demand (Swann and Birke, 2005). Similar results confirm the shift in innovations that are beginning to consider aesthetic innovations, including design innovation and style innovation. The main distinguishing characteristics identified are the contrasting aesthetic and functional viewpoints (Alcaide-Marzal and Tortajada-Esparza, 2007; Swann and Birke, 2005). The results of the research have been figured out so that it can examine more hard innovation based on product functionality, and soft innovation that not only emphasizes the functional aspects, but also to aesthetics, and intellectual property. Research conducted on two sub-sectors of creative industry in Indonesia that is in the fashion industry (fashion/ shoes/accessories) and handicraft so that can cultivate the centre of the entrepreneurial industry of craftsmen in Bandung city. The problem in this research is interesting to conduct research on the relationship of entrepreneurial orientation, creative people with co-creation mediation towards soft innovation in the creative industry in Indonesia.

LITERATURE REVIEW

Relationship of Entrepreneurial Orientation to Creative People, Co-Creation and Soft Innovation

Some researchers have found that entrepreneurial orientation can positively influence the level of corporate innovation (not only in companies but also with partner companies in strategic alliances (Jiang et al., 2016). The research on entrepreneurial orientation has grown rapidly along with the strong allegation that entrepreneurial orientation is able to significantly improve company performance (Bayarçelik and Özşahin, 2014; Emake-Szidónia, 2015; Jiang et al., Chavez et al., 2017; Lumpkin and Dess, 1996, 2001; Walter et al., 2006; Zehir et al., 2015; Zhang et al., 2016). Other researchers confirm that entrepreneurial orientation mediated by network capability with its environment will improve performance (Walter et al., 2006).

Entrepreneurial orientation is multidimensional. Miller stated that the dimension of entrepreneurship orientation consists of dimensions of proactiveness, innovativeness, and risktaking (Miller D, 1983). Next, Lumpkin and Dess incorporate the autonomy and competitive aggressiveness dimensions into the construction of entrepreneurial orientation, bringing the total dimensions of entrepreneurial orientation to 5 i.e., proactiveness, innovativeness, risk taking, autonomy, competitive aggressiveness (Lumpkin and Dess, 1996). …

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