CREATIVE SOCIAL ENTERPRISE BEHAVIOR IN THE CONTEXT OF CREATIVE ECONOMY: THE ROLE OF TRADITIONAL KNOWLEDGE-BASED DYNAMIC CAPABILITIES TO ENHANCE SUSTAINABILITY PERFORMANCE

• Main Author: Permatasari, Anggraeni
• Format: Dissertations
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/85573
• Institution: Institut Teknologi Bandung

Creative social enterprise (CSE) is a new business sector that is increasingly advanced and profitable in Indonesia. However, CSE faces challenges in managing competitiveness and business performance to a rapidly changing environment. These dynamics changes have a significant impact on business activities and consumer behavior. Therefore, CSE requires analyzing business strategies by utilizing their resources wisely to develop competitive advantage and sustainability performance to amidst environmental uncertainty. This research aims to analyze CSE behavior in the context of the creative economy. This research classifies CSE resource characteristics and explore how CSE behavior gains competitive advantage and sustainability performance. The research was conducted using a mixed method approach with sequential exploratory. The research object is CSE in the traditional weaving craft sector. The research was carried out in two stages; the first was qualitative stage. This research was conducted through direct observations and in-depth interviews involving 16 key informants from three districts: Sikka, Jepara, and Garut. Key informants are the owners or managers of traditional weaving CSEs and stakeholders involved in the traditional weaving ecosystem. The data then analyzed using the GIOIA method to answer the propositions and validated research model. Gioia's methodology is a systematic approach that aims to develop new concepts in inductive research. The second method was quantitative research with survey approach. Data collected using online questionnaire through social media. A total of 501 respondents were involved in this research, but only 385 respondents met the requirements for analysis at the next stage. Data analysis was carried out using Structural Equation Modeling (SEM) to test the hypotheses. The results show that CSE's entrepreneurial orientation is an essential factor in determining the success of a sustainability business strategy. CSE must have an entrepreneurial orientation to achieve sustainable performance to the best of their abilities. CSE's entrepreneurial orientation consists of social entrepreneurship and market orientation. These two orientations influence CSE behavior on Knowledge Based Dynamic Capabilities (KBDC) process to gain competitive advantage. However, environmental changes encourage CSE market orientation to have dynamic capabilities to manage traditional knowledge. Thus, the level of KBDC will determine the results of CSE competitive advantage. The analysis also found that the role of traditional knowledge management processes is significant to improve CSE sustainability performance. This research found that stakeholder collaboration is a moderating variable in two relationships: (1) the relationship between entrepreneurial orientation and dynamic capabilities. (2) the relationship between traditional knowledge management and dynamic capabilities (TKBDC). The finding supported by model simulation testing. The simulation testing conducted using agent-based modeling with Net. Logo software. The simulation results are used to develop business strategy recommendations that can be used for decision-making. The results shows the decisive role of stakeholder collaboration in moderating the relationship between CSE entrepreneurial orientation and TKBDC towards SBP. Simulation tests carried out on each business strategy show significant differences in output. This study provides theoretical and practical contributions to the CSE traditional weaving sustainability performance. From a theoretical aspect, this study contributes to developing the CSE behavior model towards sustainability performance, by integrating the existing theories of Creative Social Entrepreneurship, Traditional Knowledge Based Dynamic Capability (TKBDC) and Sustainability Performance. Practically, this study contributes to developing sustainability strategies to enhance CSE's traditional weaving performance in a competitive environment. The final model can adopt to respond and solve environmental changes issues in creative industries based cultural. In addition, research limitations and suggestions for further research are also discussed to expand research in the field of CSE Sustainability Performance.