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CREATING PRODUCT INNOVATION IN MICRO CREATIVE INDUSTRY IN INDONESIA

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Journal of Entrepreneurship Education Volume 21, Issue 2, 2018
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CREATING PRODUCT INNOVATION IN MICRO
CREATIVE INDUSTRY IN INDONESIA
Rd. Much. Jusup Nurgraha, Widyatama University
Hari Mulyadi, Universitas Pendidikan Indonesia
ABSTRACT
This study aims to analyse the factors that affect the level of creativity and innovation of
creative industries in the development of entrepreneurship in Indonesia, especially micro-
creative industries. This study is based on the phenomenon of the deterioration of the
performance of the micro-creative industry in Indonesia. Factors suspected to influence on the
research is the ability to analyse customer desire from co-creation experience, development of
creativity and innovation ability in product innovation, this research method using interview
technique to owner of micro creative industry umbrella painting, bamboo and woven mendong in
area Tasikmalaya Indonesia as many as 156 owners have been collected and then analysed by
using SPSS, SEM (AMOS) model, the results show two independent variables partially influence
the innovation of micro-creative industry products in Indonesia, implying that to create,
innovation of new products that have added value must be based on the collaboration between
customers through their experience with the enhancement of creativity and innovation capability
in the internal micro-creative industries of Indonesia.
Keywords: Co-Creation Experience, Development of Creativity and Innovation Ability, Product
Innovation.
INTRODUCTION
In order to improve the performance of SMEs in facing increasingly stringent challenges,
industrial entrepreneurs in the SMEs sector are encouraged to improve the ability of creativity
and innovation in analysing what consumers want and the experience felt after getting a product
that has been purchased called co-creation experience is expected can create an innovation
product according to consumer expectations. The creative industries of micro umbrella painting,
bamboo and wicker webbing in Tasikmalaya city of West Java based on field survey have not
been able to identify and fill the existing market gap with reliable products that are difficult to
imitate by competitors, still focus on maintaining existing customers meaning not yet dare to
creativity and innovate in creating the added value of a product to meet customer desires.
An entrepreneur engaged in the micro-creative industry must be able to creativity and
innovate, by always displaying product innovation so as to attract customers and needs that have
added value as customer wishes on creative micro industries umbrella painting, woven bamboo
and wicker mendong in the city of Tasikmalaya West Java based field surveys have not been
able to identify and meet existing market gaps with products that are reliable and hard to
duplicate by other industry entrepreneurs, thus able to provide competitiveness to marketed
products and not only focus on maintaining existing customers but attracting new customers due
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to the courage to do creativity and innovation in creating added value of a product to meet
customer desires.
Research conducted (Voyer & Kastanakis, 2016) solutions for creativity, innovation and
involvement can be found in the concept of co-creation. Co-creation will increase the value for
humans in economic experience. Katrien (2015), co-creation is expected to determine the
importance of the degree of readiness, technologization and connectivity between the role of the
customer and the company's experience. Co-creation experience (CCE) is the quality of
experience consumers experience when engaging in creative activities that encourage them to
continue and motivate them to do their best (Csikszentmihalyi, Abuhamdeh & Nakamura, 2005).
According to Prahalad & Ramaswamy (2004), the significant increase of opportunity for value
creation for the company as a source of unique value is the concept of co-creation experience.
The concept of co-creation experience (CCE) focuses on the idea of the customer as a
value creator in a product innovation, (PI) interacting with the organization (Nina et al., 2013).
Some research done by Sarah & Jönköping (2010), by creating value together as a basis
to create value of customer satisfaction such as, functional, social and emotional (Kim & Park,
2016), customer experience has important meaning in creating the value of a product or service
(Javier et al., 2004). To create Product Innovation (PI) is not only based on co-creation
experience but must be balanced with Development of Creativity and Innovation Ability (DCI).
The competitive advantage tomorrow will be different from today; the real focus for the
company is the chance to compete for the future (Hamel & Prahaland, 1991). Innovation is an
important element in the company by creating new business activity, in generating growth and
ensuring the viability of existing businesses to gain competitive advantage. However, the point is
that innovation driven by creative individuals does not occur spontaneously (Lowe & Mariott,
2006). According to Ünay & Zehir (2012) in his research in the fashion business, which says that
concerning Product Innovation is related to the creativity of fashion designers/textiles essential to
creating a stronger and world-leading international brand, competitive products and innovation in
“business operations”?
Providing quality experience to customers has become one of the key elements of a
successful marketing strategy (Prebensen et al., 2014). According to Masaru & Kazuhiko (2009)
products always provide functional benefits, such as the performance and functionality of the
product. The function of the product is one reason to get customer satisfaction. In addition,
adequate product performance and product functionality are recognized as differentiated
products in the market and also generate market competitiveness. Hassan (2017) classification of
new products is very important when testing customer adoption behaviour. The reason is that this
type of innovation affects the level of customer or community adoption and the kind of
knowledge learned for new goods and services.
Based on previous research descriptions that have been proposed, this study aims to
develop a product innovation for industrial craftsmen and to develop creative innovations for
entrepreneurs owners of the industry so as to increase buyer's interest in marketed products and
have creative products that are competitive and have value added to the increase of industrial
product sales for entrepreneurs in Tasikmalaya city. So the concept of this research combines co-
creation experience and development of creativity and innovation ability in the achievement of
innovation product in the creative industry.
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LITERATURE REVIEW
Relations Experience Co-Creation and Development of Creativity and Innovation Ability
Co-creation experience is the quality of experience that consumers experience when
engaged in creative activities that encourage them to continue and motivate them to do their best
(Csikszentmihalyi, Abuhamdeh & Nakamura, 2002), co-creation experience by 2013 and
Minkiewicz, Evans & Bridson (2013) is the creation of shared value between the company and
the customer through interaction with addressing the special needs of the privileged customer. In
analysing the desires of customers the company must be able to improve the ability to creativity
and innovate in the company, as expressed by Anja & Peter (2005), companies that meet
customer requirements will be lucky because customers are now more demanding, more
aggressive, more impatient and smarter than before and worse yet they have a wider range of
products and services than they ever chose.
Research conducted by Kyung-Hee & Duk-Byeong (2016) three fundamental dimensions
of the value of satisfaction felt by the tourists, namely functional value, social value and
emotional value and with the results of his research that functional value, social value and
emotional value proved to have a significant effect on the value of customer satisfaction.
Prahalad & Ramaswamy (2004) as a shift in value to the experience, the marketplace becomes a
forum for communication and interaction between consumers, the consumer community and the
company's dialogue, access, transparency and understanding of risk-benefits essential to
subsequent practice in value creation. While Anja & Peter (2005), companies that meet the
requirements of their customers will be lucky, customers are now more demanding, more
aggressive, more impatient and ingenious than ever and worse yet have a range of products and
services that are wider than they ever chose.
H1: Relationship of co-creation experience and development of creativity and innovation ability.
Relationship Co-Creation Experience and Product Innovation
Empirical research is related to the experience of co-creation (Nambisan & Nambisan,
2008) and creative experience during the competition of ideas and design in particular. More
insight is needed because the company's investment in the co-creation and virtual design creation
platform is very important. They bear the risk of generating little interest in participation and
consequently not improving the innovation process through valuable contributions while (Johann
et al., 2011) contributes to a better theoretical understanding of the autonomous, entertaining and
competent participants' participant experience. From a managerial perspective, he provides
guidance in designing successful ideas and design competitions. While innovative managers may
be interested in creative contributions, for participants, this is an important experience. Featured
community platforms and no single article submission sites are needed to attract creative users to
convey their ideas and designs.
Research conducted by Hassan (2017) product innovation is defined as goods, services,
ideas or processes perceived by the customer as a new thing in life. Cheng-Feng et al. (2013)
novelty Product innovation is needed to identify the path to product innovation success.
According to Cui & Wu (2015) three forms of customer engagement in product innovation,
customer engagement as a source of information (CIS), customer engagement as co-developers
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(CIC) and customer engagement as innovators (CIN). According to Cindy (2014), when a
company builds a customer-based product or service it means solving a specific problem that the
customer is facing.
H2: Relationship Co-Creation Experience and Product Innovation.
Relationship between Creativity and Innovation Ability Product Innovation
Product development often requires the interaction of a group of people representing
different roles within the organization. Therefore, it is important to regulate organizational
creativity, which refers to "the creation of new products, services, ideas, procedures or processes
that are valuable and useful by individuals working together in complex social systems"
(Woodman, Sawyer & Griffin, 1993). Creativity as the ability to think of schemes, reach new
and functional conclusions, suitable for solving problems or seizing opportunities. Research
conducted by Cheng et al. (2013) innovation related products related to the organization, related
to the project, related to processing, related products and related markets and new product
innovations. If an organization utilizes an existing product line to innovate, the company's
novelty level is low. Conversely, if an organization explores the idea of a largely new product for
the company, the level of novelty in the company's product line is high. Together with
technology, markets and novelty, the dimensions of the firm's product dimensions determine the
magnitude of product innovation. The novelty of an innovation can affect the product innovation.
H3: Relationship between Creativity and Innovation Ability Product Innovation.
RESEARCH METHOD
This study used survey approach using 156 respondents to the owner of creative
microcomputer industry umbrella, bamboo woven and mendong ayaman located in Tasikmalaya
area of West Java Indonesia in the development of community entrepreneurship. The sampling
technique used in this research is nonprobability sampling. According to Sekaran & Roger
(2014), nonprobability sampling is: Design of sampling in which elements in the population has
no known or predetermined opportunities to be selected as a subject of the sample.
Data analysis in this research using SPSS and structural equation (SEM) assisted by
AMOS program. Analyses of this study include, confirmatory factor analysis (CFA) of the
measurement model used to validate the factorial structure with the modifications and
adjustments required to thoroughly examine the measurement model and ensure the quality of
the assessment measurement model, fit model, composite reliability (CR), convergent validity
and discriminant construct values.
Research Empirical Model and Hypothesis
From the above explanation, some research has been done indicate that in forming
product innovation required role from a customer, because a customer can become an innovator
in value creation on a product. Research model in this research based on literature and hypothesis
study, conceptual model or theoretical framework can be seen in Figure 1.
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FIGURE 1
RESEARCH EMPIRICAL MODEL
Validity Test
For validation test analysis used SPSS as in Table 1. According to Chen & Pearl (2015),
validity test is used to measure whether the questionnaire is valid or not. Questionnaires are said
to be valid if able to express something that will be measured by a questionnaire.
Table 1
UJI VALIDITAS FOR ITEM CO-CREATION EXPERIENCE
eec1
eec2
eec3
eec4
CCE
eec1
1
0.545**
0.550**
0.480**
0.785**
0.000
0.000
0.000
0.000
156
156
156
156
156
eec2
0.545**
1
0.562**
0.643**
0.846**
0.000
0.000
0.000
0.000
156
156
156
156
156
eec3
0.550**
0.562**
1
0.520**
0.813**
0.000
0.000
0.000
0.000
156
156
156
156
156
eec4
0.480**
0.643**
0.520**
1
0.812**
0.000
0.000
0.000
0.000
156
156
156
156
156
CCE
0.785**
0.846**
0.813**
0.812**
1
0.000
0.000
0.000
0.000
156
156
156
156
156
** Correlation is significant at the 0.01 level (2-tailed)
Normality test
According to Ghozali (2013), normality test aims to test whether the variable regression
model of a bully or residual has a normal distribution. Normality tests are required to perform
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other assay variables assuming that the residual values follow the normal distribution. If this
assumption is violated then the statistical test becomes invalid and the parametric statistics
cannot be used. The test results of normality test on variable said normal distribution when cr< ±
2.58 (α=0001), in Table 2 seen statistic skewness and kurtosis all variable manifest (indicator)
have value less than 2058 and multivariate test result cr=0.615<2.58, then the multivariate
variable of the study is normally distributed.
Table 2
NORMALITY TEST
Variable
min
max
skew
cr
kurtosis
cr
pi3
1.000
5.000
-0.367
-1.953
-1.314
-3.497
pi2
1.000
5.000
-0.116
-0.615
-1.422
-3.785
pi1
1.000
5.000
-0.442
-2.352
-0.953
-2.537
dcia1
1.000
5.000
0.024
0.129
-1.352
-3.598
dcia2
1.000
5.000
0.199
1.061
-1.398
-3.721
dcia3
1.000
5.000
0.135
0.721
-1.361
-3.622
eec4
1.000
5.000
-0.112
-0.596
-1.253
-3.335
eec3
1.000
5.000
-0.100
-0.532
-1.335
-3.552
eec2
1.000
5.000
-0.239
-1.272
-1.251
-3.328
eec1
1.000
5.000
-0.298
-1.588
-1.112
-2.960
Multivariate
1.462
0.615
Multicollinearity Test
Multicollinearity test is used to know whether or not the deviation of classical assumption
of multicollinearity is the existence of the linear relationship between independent variables in
the regression model. Multicollinearity or Singularity in a combination of variables, it is
necessary to observe the determinant of its covariance matrix or singularity. The determinant of
Sample Covariance Matrix=250977>0, so it can be concluded that the presence of
Multicollinearity or Singularity in this data can still be tolerated. Therefore these assumptions are
fulfilled.
Table 3
MULTICOLLINEARITY TEST
Variables
Development of Creativity and
Innovation Ability
Co-Creation
Experience
Product
Innovation
Development of Creativity
and Innovation Ability
1.000
Co-Creation Experience
0.161
1.000
Product Innovation
0.222
0.271
1.000
Measurement Model
The validity of the construct of the research instrument is estimated by evaluating the
suitability of individual and overall models. Assessment is done using Amos 20.0. The results of
the examination indicate a number of invalid indicators of each variable causing the unreliable
initial model. The revised model, done by excluding the invalid items from each of these
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variables is then done. The revised results suggest a revised model match, indicating that the
model is valid and reliable thus providing revised acceptance of the model for use in this study.
FIGURE 2
STRUCTURE MODEL
Model Testing (Goodness-of-Fit)
Assessment of SEM model that is formed seen from the goodness of fit size is presented
in Table 4.
Table 4
MODEL TESTING (GOODNESS-OF-FIT)
Statistics Test
Critical Value
Estimate
Conclusion
Cmin/DF
≤ 2.00
39.064
Good Fit
P-value
≥ 0.05
0.182
Good Fit
Adjusted Goodness of Fit (AGFI)
≥ 0.90
0.925
Good Fit
Goodness of Fit Index (GFI)
≥ 0.90
0.956
Good Fit
Comparative Fit Index (CFI)
≥ 0.90
0.987
Good Fit
Tucker Lewis Index (TLI)
≥ 0.90
0.981
Good Fit
Root Mean Square Error of
Approximation (RMSEA)
≤ 0.08
0.036
Good Fit
The result of evaluation of SEM model by looking goodness of fit in Table 4 shows
model seen from chi-square value fulfil model suitability (chi-square value 39.064 smaller than
table value) with the significance level (0.182) greater than 0.05. The research model has AGFI,
GFI, CFI, TLI and RMSEA values indicating a good level of conformity. This indicates that the
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model proposed in this study is acceptable because it has a goodness of fit measure that indicates
an acceptable model.
Hypothesis Testing Research
After the model evaluation results can be expressed that the model meets the criteria of a
suitable model (FIT) further testing the research hypothesis based on the value of t each causality
relationship of the SEM processing results as in Table 5.
Table 5
TEST RESULT OF SIGNIFICANCE
H
Hypothesis
Estimate
S.E
C.R
p-value
Conclusion
H1
Co-Creation experience terhadap
Development of Creativity and
Innovation Ability
0.142
0.087
1.646
0.100
Sign
H2
Co-Creation experience and
Product Innovation
0.284
0.114
2.489
0.013
Sign
H3
Development of Creativity and
Innovation Ability to Product
Innovation
0.176
0.090
1.953
0.051
Sign
DISCUSSION
Relationship Co-Creation Experience and Development of Creativity and Innovation
Ability
Based on the test results using SEM it appears that co-creation experience has a positive
effect on the Development of Creativity and Innovation Ability with the test result value of
0.161. that the Co-Creation Experience is a shared value creation between the company and the
customer that influences the Development of Creativity and Innovation Ability in the micro
creative industry in Tasikmalaya City. This research is relevant to the research conducted by
Kim & Park (2016) three fundamental dimensions of the value of satisfaction felt by the tourists,
namely functional value, social value and emotional value and with the results of his research
that functional value, social value and emotional value proved to have a significant effect on the
value of customer satisfaction. Prahalad & Ramaswamy (2004) as a shift in value to the
experience, the marketplace becomes a forum for communication and interaction between
consumers, the consumer community and the company's dialogue, access, transparency and
understanding of risk-benefits essential to subsequent practice in value creation.
Relationship Co-Creation Experience and Product Innovation
Based on the results of testing using SEM it appears that co-creation experience has a
positive effect on Product Innovation with a test result value of 0.271. That Co-Creation
Experience is the creation of added value in a product that is expected from consumers that
influence the creation of Product Innovation in a micro creative industry in Tasikmalaya City.
The results of this study are relevant to research conducted by Hassan (2017) product
innovation is defined as goods, services, ideas or processes perceived by the customer as a new
thing in life. Cheng et al. (2013) novelty Product innovation is needed to identify the path to
Journal of Entrepreneurship Education Volume 21, Issue 2, 2018
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product innovation success. According to Cui & Wu (2015) three forms of customer engagement
in product innovation, customer engagement as a source of information (CIS), customer
engagement as co-developers (CIC) and customer engagement as innovators (CIN). According
to Cindy (2014), when a company builds a customer-based product or service it means solving a
specific problem that the customer is facing.
Development of Creativity and Innovation Ability to Product Innovation
Based on the results of testing using SEM it appears that the Development of Creativity
and Innovation Ability has a positive effect on Product Innovation with a value of test results of
0.222 that the Development of Creativity and Innovation Ability is the ability to creativity and
innovation in creating added value in a product that is expected from the consumers that
influence the creation of Product Innovation in a micro creative industry in Tasikmalaya City.
The results of this study are relevant to Creativity as the ability to think of schemes, reach new
and functional conclusions, suitable for solving problems or seizing opportunities. Research
conducted by Cheng-Feng et al. (2013) innovation related products related to the organization,
related to the project, related to processing, related products and related markets and new
product innovations. If an organization utilizes an existing product line to innovate, the
company's novelty level is low. Conversely, if an organization explores the idea of a largely new
product for the company, the level of novelty in the company's product line is high. Together
with technology, markets and novelty, the dimensions of the firm's product dimensions
determine the magnitude of product innovation. The novelty of an innovation can affect the
product innovation.
CONCLUSION
SEM model test results using AMOS can be concluded that there is a positive influence
between Co-Creation Experience with Development of Creativity and Innovation Ability. This
indicates the increasing Co-Creation Experience will be able to increase the Development of
Creativity and Innovation Ability. While the Co-Creation Experience and Development of
Creativity and Innovation Ability variables have a positive influence on Product innovation, this
means that increasing Co-Creation Experience and Development of Creativity and Innovation
Ability will influence Product Innovation improvement. Impilikasi obtained based on the results
of this study stated that the creation of the innovation products creative microcomputer umbrella
painting, woven bamboo and wicker mendong in the city of Tasikmalaya West Java need to pay
attention to customer desires based on experience and balanced with the improvement of
creativity and innovation in the internal company. Entrepreneurs in micro industries are required
to be able to innovate products in order to increase buyer interest and competitiveness because
consumers basically want something new in the marketed products.
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... The theoretical framework proposed by Schmidt, Schreiber, Bohnenberger, and Pinheiro (2018), seems to grasp the idiosyncrasies of creative activities, where collaboration allows the access to the necessary resources for innovation. Collaboration efforts of creative professionals are usually studied considering their relation with three types of actors: 1) the clients or public that benefits from the creative work (Chang, Backman, & Huang, 2014;Hauge, 2012;Matulionyte, Paton, McIntyre, & Gleadhill, 2017;Nurgraha & Mulyadi, 2018;Parmentier & Mangematin, 2014;Powell & Dodd, 2007); 2) co-workers closely related to the creative process (Dobusch & Schüßler, 2014;Jisun, 2010;Lange, 2008;Moyon & Lecocq, 2014;Wilson & Stokes, 2005;Yair & Schwarz, 2011;Yamada & Yamashita, 2006) and; 3) business agents (Broekhuizen, Lampel, & Rietveld, 2013;Chaston, 2008;Dempster, 2006;Hauge, 2012;Lee, 2005;Matulionyte et al., 2017;Wilson & Stokes, 2005). While the literature has consistently explored the interaction between creative professionals and these actors, the relative importance of each actor remains theoretically fragmented and empirically under-researched. ...
... This indicates that, in the case of tourism, interaction with customers to generate new experiences are very important. This seems also to be the case among micro-creative industries of Indonesia, where Nurgraha and Mulyadi (2018) found a positive relation between co-creation experience and the development of creativity and innovation ability. ...
... Also, in the tourist industry Chang et al. (2014) propose that the focus on the experience of tourists is a critical way to develop services to meet their needs and wants. In Indonesia, Nurgraha and Mulyadi (2018) provided evidence that cocreation experiences positively affects product innovation in micro-creative industries, increasing buyer interest and competitiveness. The development of creativity and innovation ability seems to be achieved by co-creation experiences with customers (Nurgraha & Mulyadi, 2018). ...
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Resumo Within the dynamic environment of the recent creative industries, collaboration performs a central role. The literature has consistently explored the interaction between creative professionals with three types of actors: 1) the clients or public; 2) co-workers and; 3) business agents. The relative importance of each actor, however, remains theoretically fragmented and empirically under-researched. Therefore, this study aims to address the following question: what is the relation between the type of partner to which the collaborative efforts are directed and the performance factors within the creative industries? To answer that question, a quantitative study comparing university students in more creative-intensive and less creative-intensive occupations was performed. Performance factors of both groups seem to follow similar priorities. Their collaborative efforts, however, show different patterns, supporting the conclusion that creativity is indeed related to different collaboration strategies. Abstract Within the dynamic environment of the recent creative industries, collaboration performs a central role. The literature has consistently explored the interaction between creative professionals with three types of actors: 1) the clients or public; 2) co-workers and; 3) business agents. The relative importance of each actor, however, remains theoretically fragmented and empirically under-researched. Therefore, this study aims to address the following question: what is the relation between the type of partner to which the collaborative efforts are directed and the performance factors within the creative industries? To answer that question, a quantitative study comparing university students in more creative-intensive and less creative-intensive occupations was performed. Performance factors of both groups seem to follow similar priorities. Their collaborative efforts, however, show different patterns, supporting the conclusion that creativity is indeed related to different collaboration strategies.
... Co-creation is key in encouraging innovation capability in the context of social setting. Co-creation is defined as the collaborative process of creating and developing innovation while also empowering the community [31]. ...
... Idea sharing is key for co-creation activities. It fosters creativity in informal setting [31]. Through the design thinking analytical framework during empathize stage, we discovered that there are still trust issues within the community, and each artisan does not have high confidence that their knowledge, if shared with others, will benefit the community. ...
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The research studies how innovation capability can be nurtured within community of artisans through design tool development. Innovation capability has generated widespread interest both academically and practically. However previous works have mostly been performed at profit organizations with few discussed at community level, especially in artisans' community who are struggling to create innovative product and have lost their competitiveness in the market. The research focusing on a unique case, Rancabuaya Village, Tangerang, Indonesia. The research used qualitative exploratory study design with single case study. Data collection methods used in the study were in-depth interviews, literature study and documentation. Innovation capability is key for long term sustainability and need to be nurtured in community sectors. To accelerate the innovation capability building process in informal setting, the study proposes a design tool to facilitate idea generation for new product development in community of artisans. The design tool is developed with design thinking process: empathize, define, ideation, prototyping and testing. The design tools as the study result are the bamboo and rattan idea book, a book consisting of a mood board and a compilation of different weaving patterns from each component of a weaving object. The book aims to foster the idea management and creativity within a community of artisans, two determinants that are found to be essential for building innovation capability. This research contributes on two main ways: first, it provides an understanding that nurturing innovation capability in community artisans setting necessitates strategic management initiatives such as: a product development strategy, an idea sharing system, and a collaborative culture, this has not been profoundly explored by the present literature; and second, it employs design thinking as an analytical framework that provides a human-centered approach to the process of building innovation capability and ensures that the tool developed is rooted in the needs of the artisan community.
... Rodrigues et al. [32] asserts that co-creation is critical in fostering innovation capability in the context of a social setting. The collaborative process of creating and developing innovation while also empowering the community is defined as co-creation [33]. ...
... Rodrigues et al. [32] asserts that co-creation is critical in fostering innovation capability in the context of a social setting. The collaborative process of creating and developing innovation while also empowering the community is defined as co-creation [33]. ...
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Creative social enterprises have several distinct characteristics that support the United Nations' sustainable development goals. In doing so, creative social enterprises embed innovation capability in their businesses, and it happens to be a dynamic force for their economic sustainability while also promoting cultural sustainability. The research studies how the innovation capability of creative social enterprises developed in collaboration with the community of artisans. The study elaborates how creative social enterprise revives the century old handicraft tradition through innovation capability (IC) theoretical lens. Innovation capability has generated extensive interest both academically and practically. However previous works have mostly been performed at conventional organizations with few discussed at creative social enterprise and community level, especially in artisans' community who are struggling to preserve their handicraft traditions. The research focusing on a unique case, creative social enterprise who works with 14 villages in east Nusa Tenggara Timur, Indonesia. The research used qualitative exploratory study design with single case study. In-depth interviews, a literature review, and documentation were used to collect data for the study. The study result is framework innovation capability in which co-creation as the main engine of IC development of CSE and community of artisans. CSE develops their innovation capability by nurturing multidiscipline team development, listen to market demand, constantly do research and development. Community of artisan's innovation capability can be developed by considering factors like local culture, local material, local champion, village governance and artisans' willingness to learn. This research contributes in two ways: first, it provides a comprehensive understanding of how to collaboratively develop innovation capability; and second, it successfully identifies the determinants of innovation capability in both creative social enterprise and artisan communities.
... Organizational innovation is the success of applying creative ideas in an organization (Amabile, 1988). In this definition, the ideas at issue can be anything from ideas to new products, processes, or services within an organization's business line with ideas about new procedures or policies within the organization itself (Prebensen et al., 2018;Nurgraha & Mulyadi, 2018;Chen, 2019). ...
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The purpose of this study is to look at analyzing the co-creation experience and development of creativity and innovation ability creating opportunities in the craft industry in Indonesia. This study is based on the phenomenon of the decline in the number of handicraft industries in Indonesia, factors that are thought to influence are lack of consumer involvement and increased creativity and innovation in the management of handicraft industries in Indonesia. Moreover, collected which were then analyzed using SPSS, SEM model (AMOS), and resulted in two independent variables influencing in creating new entrepreneurial opportunities, implying to create new business opportunities, must involve customer desires and increase the ability of creativity and innovation within the existing craft industry in West Java, Indonesia.
... Furthermore, Tan et al. (2016) studied the essence of creative experiences by analyzing the case of Taiwan and described the constructs of tourists' creative experiences, (that is, "outer interactions" and "inner reflections"). Lee (2015) The role of artists in this context has also been taken into consideration and analyzed (Slak Valek, 2020). Others focused on creative businesses, for example, Schmidt et al. (2018) differentiated four strategic dimensions (vision, strategic formulation, resources, and stakeholder relations) for small creative industry firms, while Nurgraha and Mulyadi (2018) examined factors influencing the level of creative innovation in Indonesia. ...
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Purpose This paper aims to identify the nature of creative tourism and the roles of interrelated concepts especially those of creative industries in the value creation process, by analyzing the trends in existing practices. Design/methodology/approach Based on a thorough literature review of the multidisciplinary “creative” related research, this paper provides a conceptual insight of the value creation process in creative tourism. Findings A conceptual framework is provided to consolidate the value creation process of a creative economy by considering the nature of creative tourism and interrelated concepts. Research limitations/implications This study contributes to the literature because it provides a valid research base and insights for future research, based on a clear perspective that amalgamates essential information. Practical implications Creative tourism offers immense opportunities in the global context as tourists are constantly looking for new experiences and opportunities. This study provides insights for creative workforces, entrepreneurs and organizations in formulating appropriate management and marketing strategies by considering all relevant components and the roles they can play to capitalize on this opportunity. Originality/value Creative industries play a critical role in introducing new strategies in the service sector by enabling an upgrade of value-added activities to those that are currently offered, in a sustainable manner. However, studies so far have not taken into consideration the nature of the sector and have not attempted to clarify its relevance (for example, creativity, creative industries and creative workforces) in the value creation process. The study contributes to filling the gap from a conceptual perspective.
... Small businesses are scattered in various corners to housing built in garages as well as in kitchens and seen on the side of the road like culinary business, grocery store, car workshop, motorcycle workshop, welding workshop, and so on. Entrepreneurs in small business are required to be able to innovate business in order to increase buyer interest and competitiveness because consumers basically want something new in the marketed products (Nurgraha & Mulyadi, 2018). This condition is an illustration that these small and medium enterprises are the backbone of Indonesia's growing economy. ...
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Technology-based entrepreneurship education is very suitable to be developed in higher education. The entrepreneurship education model is currently not producing many scholars who want to start their life after graduating from college with entrepreneurship. The purpose of this study is determining the factors that influence the intention of entrepreneurship of motorcycle workshops for students. This research method is a causal survey. The sample in this research is 242 students and taken by proportional random sampling. Data analysis techniques include descriptive statistical analysis, inferential statistics for linearity test, regression significance and for multivariate statistics using path analysis. After knowing the factors that can affect the intention of entrepreneurship, it is developed through research model of learning development, to plan entrepreneur model of technology-based motorcycle workshop. The results of the objective research are: 1. Self-reliance has positive direct effect on motorcycle knowledge. 2. Self-reliance has a direct positive effect on the courage to take risks. 3. Motorcycle knowledge has a direct positive effect on the courage to take risks. 4. Self-reliance directly positive to entrepreneurship intention of a motorcycle workshop. 5. Motorcycle knowledge has a direct positive effect on entrepreneurship intention of a motorcycle workshop. 6. The courage to take risks has a direct positive effect on entrepreneurship intention of a motorcycle workshop. It can be concluded that autonomy has a direct positive effect on motorcycle knowledge, autonomy and knowledge of motorcycles have a direct positive effect on the courage to take risks, and self-reliance, knowledge of motorcycles, and the courage to take risks positively affect the intention of entrepreneurship workshop motorcycle.
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This chapter provides an introduction to entrepreneurial opportunities, which individuals might identify and exploit by becoming entrepreneurially active. It requires us to look into the question of how opportunities can be discovered or created in established markets or how they might enable creating new markets. The emphasis on opportunities is not only decisive for exploiting an entrepreneurial opportunity, but also for marketing it. Therefore, we next present the basics of entrepreneurial marketing, which subsumes extremely creative marketing due to high levels of uncertainty with regards to the product, markets and customers. In the last section we offer approaches of how to employ entrepreneurial marketing not only to address customers but also other target groups such as future employees. Additionally, we provide four exercises to entrepreneurship educators in order to enable experience-based learning.
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Despite the intensive use of the Internet in service delivery, little attention has been paid so far to assessing the impact of the quality of electronic services on the willingness of customers to participate in the co-creation experience online. In order to determine how the consumer reacts to the adoption of new information and communication technologies and, in particular, online telecommunication services, we empirically test the influence of electronic service quality dimensions on the co-creation experience online, integrating the attitude, satisfaction, and intention of the customer. The data were collected from a sample of 263 Tunisian telecommunications customers and analyzed using the structural equation modeling technique. The results show that, even if five dimensions of the quality of the online service positively influence the attitude towards the website, all of the dimensions of the quality of e-services positively influence the e-satisfaction. The results also confirm that customers' attitude towards the website and e-satisfaction positively affect the intention to use the website, which in turn affects the willingness of clients to participate in the experience co-creation online.
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This research aims to investigate the relationship between customers’ innovativeness and their intentions to adopt new mobile phones from the standpoint of Egyptian university students. The research studies the direct effects of the five dimensions of customers’ innovativeness on their intentions of new products adoption, which are measured through the mediating effect of two factors: the risks to mobile phones perceived by the customers and customer involvement. The research also aims to identify the so-called “initiators” segment; customers who have the highest probability for purchase the product early. A quantitative method with deductive approach is chosen in this research. Four hypotheses have been designed to determine: whether there is a significant difference in customers’ perception of risks to new mobile phones, innovativeness, involvement, and adoption intentions according to demographic variables (gender, place of residence, income); whether there is a significant positive effect of customers’ innovativeness on customers involvements with new mobile phones; whether there is a significant negative effect of customers’ innovativeness on the perceived risks to new mobile phones; and whether there is a significant positive effect of customers’ innovativeness on their intentions to adopt new mobile phones. A significant impact of the five dimensions of customers’ innovativeness is found on the adoption intentions of new mobile phones. Also a significant effect of the five dimensions of customers’ innovativeness is found on the perceived risks and customer involvement factors. The research develops a new model of the relationship between the customers’ innovativeness and their intentions to adopt new products. In practice, the research results contribute to help marketing managers for better market fragmentation and identify customer segments with high innovativeness; which helps organizations prepare appropriate marketing campaigns and thus leads to the success of new products deployment.
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Purpose Opportunity recognition and opportunity exploitation are two central concepts in the entrepreneurial process. However, there is a lack of both a clear specification of the content domains of the constructs and valid and reliable multi-item scales for their measurement. The paper aims to discuss these issues. Design/methodology/approach This paper first reveals existing issues around the definitions and measures relating to the concepts, then defines their content domains, and also proposes scale items to measure the concepts. Four samples are used to develop the measurement instruments. Findings Two scales are suggested, one to measure opportunity recognition, and other to measure opportunity exploitation. The scales demonstrate reliability and construct, discriminant, and nomological validity. Originality/value The resulting instruments provide tools for research and practice that could prove valuable when examining the antecedents and consequences of both opportunity recognition and opportunity exploitation.
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This article takes as its central concern the diffusion of high technology innovation among business organizations. A set of propositions is developed that focuses on the competitive factors influencing diffusion. The article suggests how the supply-side competitive environment and the adopter industry competitive environment both affect diffusion of new technologies. The article seeks to extend the current behavioral paradigm for studying innovation diffusion by incorporating competitive factors as explanatory variables.
Chapter
Since its introduction in 2010, Marketing 3.0 has become a well-accepted concept in many countries. It is extremely gratifying to observe companies increasingly treating customers as multi-dimensional, values-driven people, in some cases, potential collaborators too. Customers too feel empowered as they recognize the global impact of their purchasing and decision-making powers.
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To develop a managerially relevant understanding of value and value creation, these phenomena must be analysed on a micro level. Seen from above, they lack a microfoundation. In the present article, value and value creation are discussed from a micro position, based on a service logic (SL) analysis of the service perspective on business and marketing. In the Grönroos-Voima value model of SL, only one value concept—value-in-use—is used, to support theoretical rigour. The customer not only determines value, but is also the value creator. By facilitating customers’ value creation, the firm provides potential value, which evolves as value-in-use during use or consumption. If the actors can establish a platform of co-creation during direct interactions, the service provider’s and the customer’s processes merge into one interactive, collaborative and dialogical process, and then the firm may co-create value with the customer. Theoretical and practical implications are discussed.
Article
The purpose of this study is to analyze and provide empirical evidence on; - To examine the relationship between product innovation and sustainable competitive advantage, - To examine the relationship between product innovation and market driving and - To examine the relationship between market driving and sustainable competitive advantage. The population of this study is rabbit meat merchants with a total 110 people in the district of Ngablak Magelang. Techniques of data collection a done by distributing a questionnaire to the respondent and made documentation or records of the sources of the requires data. The analysis used in this study is by using the concept of Structural Equation Model (SEM) with Partial Least Square (PLS) program. The results of the study show that the effect of Product innovation (PI) on sustainable competitive advantage (SCA) is positive significant, The effect of Product innovation (PI) on Market Driving (MD) is positive significant, The effect of Market driving (MD) on sustainable competitive advantage (SCA) is positive significant. The implication of this study found that product innovation, market driving significantly affects sustainable competitive advantage.
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Csaba's (2016, this issue) view that Voyer, Kastanakis, and Rhode (2016, this issue) offers an incomplete perspective on cultural reciprocal identity co-creation misinterprets the actual aim and scope of the article. We agree with Csaba that cultures should not be stereotyped and equated to countries or solely studied from an individualism - collectivism standpoint. However, we argue that his views are partial and mainly reflect a constructivist epistemological perspective. We conclude that Voyer et al. (2016, this issue) offer an open, flexible and comprehensive framework on reciprocal identity-co-creation, which is multi-epistemological and as such reconciles positivist and constructivist perspectives on the topic of reciprocal identity co-creation across cultures. Future research should improve our knowledge on this domain, from both a constructivist and positivist point of view.