NETWORK-BASED BUSINESS MODEL INNOVATION IN CRAFT INDUSTRY IN INDONESIA, CASE STUDY OF HAMZAH BATIK, BATIK GIRILOYO, AND DEKORUMA

• Main Author: FARAH NADHIRA (NIM 19014123), SALSABILA
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/24179
• Institution: Institut Teknologi Bandung

ABSTRACT <br /> <br /> <br /> <br /> Indonesian craft industry is included in the 3 largest categories contributor of creative economy <br /> <br /> <br /> <br /> Indonesia. In addition, the craft industry in Indonesia has great opportunities and challenges. One <br /> <br /> <br /> <br /> of the opportunities that exist in the Indonesian craft industry is that Indonesia has an abundant <br /> <br /> <br /> <br /> wealth of resources and also many Indonesian crafts are known internationally such as Batik, <br /> <br /> <br /> <br /> Wayang, Carving Wood, Weaving, Webbing, etc. On the other hand, as the era develops, the craft <br /> <br /> <br /> <br /> industry also faces challenges such as the underutilization of the emerging information technology <br /> <br /> <br /> <br /> medium as a marketing medium, the low understanding of branding for craftsmen, the lack of <br /> <br /> <br /> <br /> effective and efficient facilities and infrastructure development to support the production process, <br /> <br /> <br /> <br /> and also the SMEs is not ready yet to face the AEC (Asian Economic Community) because <br /> <br /> <br /> <br /> Indonesian products are less competitive with overseas products in terms of price and quality. One <br /> <br /> <br /> <br /> of the way to overcome these challenges is to innovate in business models that are done in <br /> <br /> <br /> <br /> collaboration with various other business actors. However, the craft industry players in Indonesia <br /> <br /> <br /> <br /> are still lacking understanding of collaboration. This resulted in problems of lack of understanding <br /> <br /> <br /> <br /> of existing craft industry network conditions, business models, business models of innovation and <br /> <br /> <br /> <br /> value obtained from the implementation of network, business model and business model of <br /> <br /> <br /> <br /> innovation in the network. This problem becomes the core problem in this research. <br /> <br /> <br /> <br /> In this research, the authors use a conceptual framework of a network-based business model <br /> <br /> <br /> <br /> consisting of 4 dimensions of network, business model, business model innovation and the result is <br /> <br /> <br /> <br /> value. This research used qualitative data method by using semi-structured interview and secondary <br /> <br /> <br /> <br /> data. The respondent of this research are horizontal which is Hamzah Batik, vertical which is Batik <br /> <br /> <br /> <br /> Giriloyo and multidimensional which is Dekoruma. Respondents were selected using random <br /> <br /> <br /> <br /> sampling by focusing on the possibility that they could produce accurate data in this study. <br /> <br /> <br /> <br /> Respondents in this study included one person from the focal firm and one or more people from the <br /> <br /> <br /> <br /> network members. Each case study was chosen based on their experience in innovating a networkbased <br /> <br /> <br /> <br /> business model that could provide the knowledge for the craft industry players in Indonesia <br /> <br /> <br /> <br /> to collaborate. <br /> <br /> <br /> <br /> The results of case studies in this study show the condition of network, business model, business <br /> <br /> <br /> <br /> model innovation that different will produce different value output. In this case, the network that <br /> <br /> <br /> <br /> provides the most value creation and value delivery is horizontal. The resulting values depend on <br /> <br /> <br /> <br /> the collaborating activities that exist within the network. From this research also shows that it is <br /> <br /> <br /> <br /> better for the actors in the craft industry to understand the condition, business model, business <br /> <br /> <br /> <br /> model innovation that exists because of each network type which are vertical, horizontal and <br /> <br /> <br /> <br /> multidimensional have their own characteristics and different values. The author give <br /> <br /> <br /> <br /> recommendation for craft industry player and academician. <br /> <br /> <br /> <br /> Keywords: Network, Business Model, Business Model Innovation, Value, Craft Industry