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Empowerment of employees in creative economic business: Case study of the developing economy.

  • STIE Adi Unggul Bhirawa Surakarta

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Companies engaged in the creative industry right now are implementing employee empowerment as one step in the organization to participate more effectively and make things work well (Siachou & Gkorezis, 2018). Empowerment teaches how employees make decisions and accept responsibility for the results of what they do. Related to the issue of development and creative economic growth, what are the organization’s efforts towards employees in creative industry companies through empowerment employee (McRobbie, 2016)? This study aims to determine employees’ perceptions of employee empowerment and the impact of empowerment on creative business. This research is qualitative research with a case study approach. The subject of the research is 18 employees at the company Janur Biru, Surakarta. Data collection was done through interviews, observations, and review of documents. Long-time observation and research take about 6 months. Research data are analyzed by classifying data based on various data available, then connecting with data and information obtained from literature, documents, surveys, interviews, and field observation. Based on the results of research conducted at Janur Biru about employee empowerment, it can be concluded, that overall empowerment for employees is good. The most dominant employee empowerment is accountability. The dimensions of desire are generally good. However, the lack of creative encouragement for employees to think about work strategies is because work strategies are still being made by leaders
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Journal of Governance and Regulation / Volume 10, Issue 3, 2021
Agus Utomo *, Yosephine Angelina Yulia **, Yenni Khristiana *
* Sekolah Tinggi Ilmu Ekonomi AUB Surakarta, Surakarta, Indonesia
** Corresponding author, Sekolah Tinggi Ilmu Ekonomi AUB Surakarta, Surakarta, Indonesia
Contact details: Sekolah Tinggi Ilmu Ekonomi AUB Surakarta, Jl. Mr. Sartono No. 46 Nusukan, Surakarta, Middle Java, Indonesia
How to cite this paper: Utomo, A.,
Yulia, Y. A., & Khristiana, Y. (2021).
Empowerment of employees in creative
economic business: Case study of
the developing economy. Journal of
Governance & Regulation, 10(3), 93103.
Copyright © 2021 The Authors
This work is licensed under a Creative
Commons Attribution 4.0 International
License (CC BY 4.0).
ISSN Print: 2220-9352
ISSN Online: 2306-6784
Received: 11.02.2021
Accepted: 14.07.2021
JEL Classification: A13, E24, J54, L26, O31
DOI: 10.22495/jgrv10i3art8
Companies engaged in the creative industry right now are
implementing employee empowerment as one step in the
organization to participate more effectively and make things work
well (Siachou & Gkorezis, 2018). Empowerment teaches how
employees make decisions and accept responsibility for the results
of what they do. Related to the issue of development and creative
economic growth, what are the organization‘s efforts towards
employees in creative industry companies through empowerment
employee (McRobbie, 2016)? This study aims to determine
employees‘ perceptions of employee empowerment and the impact
of empowerment on creative business. This research is qualitative
research with a case study approach. The subject of the research is
18 employees at the company Janur Biru, Surakarta. Data collection
was done through interviews, observations, and review of
documents. Long-time observation and research take about
6 months. Research data are analyzed by classifying data based on
various data available, then connecting with data and information
obtained from literature, documents, surveys, interviews, and field
observation. Based on the results of research conducted at Janur
Biru about employee empowerment, it can be concluded, that
overall empowerment for employees is good. The most dominant
employee empowerment is accountability. The dimensions of
desire are generally good. However, the lack of creative
encouragement for employees to think about work strategies is
because work strategies are still being made by leaders.
Keywords: Employee Empowerment, Creative Economy, Creative
Economic Business, Organizational Culture, Employee
Participation, Creative Industries, Entrepreneurship
Authors’ individual contribution: Conceptualization A.U.;
Methodology A.U.; Formal Analysis A.U., Y.A.Y, and Y.K.;
Writing Original Draft A.U., Y.A.Y, and Y.K.; Writing Review &
Editing A.U., Y.A.Y, and Y.K.; Supervision A.U.
Declaration of conflicting interests: The Authors declare that there is no
conflict of interest.
Human resources (HR) are the most important assets
or capital for an organization or company. HR is
the most important capital because it has far more
value than all the equipment, technology and
systems that are owned by the organization or
the company itself. Companies need to manage and
maintain the HR within the company to make it as
good as possible. It should be understood by
the company that half of employees‘ daily lives is
spent in the workplace and workplaces have become
Journal of Governance and Regulation / Volume 10, Issue 3, 2021
an integral part of employees‘ total lives
(Schlesinger, Selfe, & Munro, 2015). Making
the workplace happier is not only an HR role but
must be done by HR officers with the same passion,
enthusiasm, commitment, and energy so that
management must ensure that all employees
working in their organization are happy to work
towards a good quality that will improve their
performance because every day employees come to
their workplace (Van den Berg et al., 2020). Because
to achieve the success of a company not only
technological excellence is needed, but also the role
of human resources is the most important
component in achieving company success.
Efforts to increase company productivity need
to be done to improve employees‘ performance, one
of the efforts is by empowering employees. Because
employee empowerment is an effort to encourage
and enable individuals to assume personal
responsibility for their efforts to improve the way
they carry out their work and connect
to the achievement of organizational goals.
The principle is that employees respond more
creatively when given broad responsibilities, are
encouraged to contribute, and help to obtain
satisfaction from their work. Therefore, often
the path taken by companies to improve
employee performance, motivation, commitment
and employee productivity is through
empowering employees (Motamarri, Akter, &
Yanamandram, 2020).
In the management literature, empowerment as
a research topic is being discussed increasingly.
As indicated by Appelbaum, Karasek, Lapointe, and
Quelch (2014), many successful organizations have
placed empowerment initiatives to be very
important because it is believed that employee
empowerment can improve performance by
prioritizing employee commitment and involvement
in the decision-making process. For example,
success stories in Japanese companies, where
employers have applied paternalistic relationships to
workers and worker participation in practice, have
greatly stimulated organizational interest in
empowerment (Benton & Magnier-Watanabe, 2014).
If there is a shift in the balance of power between
employers and employees, then understanding
the factors that motivate or compel employers to
relinquish power should be the focus of attention.
The concept of employee empowerment implies that
employees are given the power that was originally
owned by management. It is interesting
to understand how this shift in power relations has
changed the way employees work and the nature of
work in organizations.
The phenomenon that occurs in human
resources today is, why there are employees who are
trusted and given higher authority to carry out
greater responsibilities but cannot meet
the expectations of the management of the company
so that they return to their original position. Why do
many employees still need to improve both in terms
of knowledge and expertise and skills to improve
their competencies, but are reluctant to learn new
things (Pohler & Luchak, 2014)? On the management
side of the company in managing its human
resources: Why does empowerment still use
conventional perspectives and approaches if it does
not provide significant improvements or changes?
Why do not companies empower their human
resources with a paradigm, approach or concept that
can change employees so that they are more
efficient and their competence increases (Brown,
2015; Hoyer, 2016)?
Employees as important assets of organizations
need to be invited to participate in thinking about
and dealing with strategic problems to the extent of
giving responsibility in order to achieve
organizational goals (Fong & Snape, 2015). From
here it is expected that imagination will emerge,
ingenuity, initiative and creativity that are very
beneficial for improving the quality of each
individual for the progress of the organization.
Therefore, the involvement of all levels of
the organization from the highest to the lowest level
is needed to face increasingly severe conditions
(Cropanzano, Dasborough, & Weiss, 2017; Chow,
2018). Having employees who are able to manage
themselves well in doing their jobs is the dream of
every leader in the organization. Because, usually all
leaders want employees who are under it to be able
to work on their own initiative without having to be
guided continuously, so with a little guidance it is
expected that these employees can complete
the task to the fullest. Employees‘ proactive behavior
can be measured through increased employees‘
satisfaction, enhanced engagement and
commitment, more satisfied customer and good
financial results (Presbitero & Teng-Calleja, 2017).
At present, the development of creative
economy is the right choice to maintain economic
resilience in conditions of global crisis. Creative
economy needs to be developed because creative
economics has the potential to have a significant
economic contribution, create a positive business
climate, build a nation‘s image and identity, based
on renewable resources, create innovation and
creativity which is a nation‘s competitive advantage
and has a social impact positive (Schlesinger et al.,
2015). To this end, intermediary agencies,
understood as the organizations between
the government and policymakers on the other
hand, and encourage creative and micro-enterprises,
however, have been seen as the key to
the functioning of the creative economy, working as
they do to organize and govern creative production
and to keep creative practitioners aligned with
high-level cultural and creative-economic policy
(Munro, 2017).
Recognizing the important role of the economy,
the President of Indonesia issued Presidential
Regulation No. 28 of 2008 concerning National
Industrial Policy which came into force on
May 7, 2008. In the Presidential Regulation,
the Government established several creative
industry sub-sector groups that will continue to
develop during 20152019, namely performances,
fine arts, television and radio, game applications,
architecture, interior design, visual communication
design, advertising, music, publishing, photography,
product design, fashion, animation and video films,
crafts and culinary.
Janur Biru is a creative economic business in
the field of photography and product design. This
Journal of Governance and Regulation / Volume 10, Issue 3, 2021
company works with clients to help solve problems
and provide solutions. Janur Biru company was
established in 2014 in the city of Surakarta.
The project carried out by Janur Biru is fairly rapid
in its development in the last three years because it
has penetrated throughout Indonesia. The project
handled by Janur Biru for the field of photography is
making high school yearbooks involving all students
and teachers. In one year, Janur Biru can get
approximately 20 schools. For product design
projects that are handled are company label
branding starting from posters up to
advertisements. Examples of companies that have
become clients of branding vendors from Janur Biru
include Indriati Hospital, Metro Department Store,
Surakarta Branch, AA Skin Care, and others.
With empowerment, it is ensured that
the organization will be able to obtain and retain
employees who have the qualities, skills, knowledge
and abilities and employ employees effectively and
efficiently (Schilpzand, Houston, & Cho, 2018).
The research questions of this paper are:
RQ1: What are the employees’ perceptions of
empowerment problems?
RQ2: How to implement the employee
empowerment model in creative economy business in
Janur Biru?
The purpose of this study was to determine
the implementation of the employee empowerment
model in the creative economy business Janur Biru.
The findings of this study are expected to enrich
knowledge about employee empowerment.
In addition, this research can be input on
the empowerment of employees who work on Janur
Biru, so that later it can improve the performance of
employees who can achieve organizational goals,
namely increasing profits for the company.
This paper is structured as follows: literature
review is presented in Section 2, followed by
methodology research in Section 3. In Section 4,
the results are presented, followed by discussion in
Section 5. At the end, conclusions are presented in
Section 6.
2.1. The rise of creative economic business
Industry today has become a part of interest of
economists, statisticians, cultural experts and public
policymakers. The potential and role of the creative
industry is acknowledged to be greater in
encouraging cultural diversity through the market
(UNESCO, 2016). The creative industry is not only
an area of interest for trained artists or companies
but is the interest of everyone, not only limited to
one sector but many sectors and has penetrated into
developed countries. The world today is in a stage of
transformation towards a creative economy and
culture (Hartley, Wen, & Li, 2015). According to
Howkins (2001), people who have ideas will be
stronger than people who work on production
machines, or even the owners of the machines
themselves. He defines the creative economy as
an economic activity where the output is ideas, or, in
one short sentence, the essence of creativity is
an idea.
The role of the creative industry is quite
significant in the development of the national gross
domestic product (GDP) in Indonesia. Especially
in 2017, the creative industry was able to contribute
around IDR 952 trillion or 7.28% to the total national
GDP. The creative economy industry grew by 4.95%
in 2017, this figure increased compared to 2016
when it grew only by 4.41%. Based on the increase in
the creative economy sector, human resources play
a very important role for the sustainability of
the creative economy business. Therefore,
companies need to pay attention to their workers,
one of which is by empowering employees. The role
of human resources management is very important
here as a bridge between workers and companies.
2.2. Human resources management
Human resources management is the process of
obtaining, training, assessing, compensating
employees, and managing their work relations,
employees‘ health and safety, as well as matters
relating to justice (Dessler, 2015). It includes
important aspects in an organization, which includes
how to do job analysis, planning workforce needs
and recruiting job candidates, selecting job
candidates, orienting and training new employees,
managing payments and salaries (employee
compensation), providing incentives and benefits,
assess performance, how to communicate, train and
develop employees, and how to build employee
commitment (Obedgiu, 2017).
The important role of human resources in
the old paradigm is to concentrate on production,
financial and marketing functions and not
an effective type of management because it is
short-term oriented. In the new paradigm, the role of
human resources concentrates on the function
of human resources, it is an effective type of
management because it is long-term oriented
(Jabbour & Jabbour, 2016; Bhutto & Auranzeb, 2016).
Human resources have shifted the meaning of
personnel administration, namely management
personnel, through human resource management
and now several organizations are using ‗people
management‘ (Colakoglu, Erhardt, Pougnet-Rozan, &
Martin-Rios, 2019). With the passage of time,
the function of human resources initially only had
administrative functions (storing personal records,
salary processing), then has a transformation
function, namely the utilization of human resources
for certain purposes within the organization, such as
profit maximization, shareholder value and the
extent to which the function of human resources is
a part of the organization‘s strategy in achieving
organizational goals and is related to
the organization‘s strategic goals and provide
important input for achieving competitive advantage
(Rees & Smith, 2014).
2.3. Employee empowerment
The origins of employee empowerment begin with
a critique of Taylorism and scientific management,
which was prevalent in the 1920s and based on
X theory. According to Taylorism, a worker‘s job is
broken down into small tasks and the best method
for carrying out each task is determined by scientific
Journal of Governance and Regulation / Volume 10, Issue 3, 2021
work studies. Workers have little discretion and are
alienated from their jobs. They work under strict
discipline and strict supervision is imposed by
management. While this approach is successful at
increasing productivity, this type of scientific
management results in problems such as
the alienation of the workforce leading to high
turnover rates, absences, and strikes. Contrary to
Taylorism, a new trend represented by the School of
Human Relations emerged showing that worker
interactions have strong business and moral
advantages. It is said that workers will be
self-motivated and carry out their work well without
strict supervision (López-Cotarelo, 2018). With this
new perspective, the focus has begun to shift
from a technical aspect to an aspect of human
The essence of the concept of empowerment is
the development of participatory management
theory. Participants are processes carried out by
organizations to provide opportunities for
employees to participate in making decisions about
their work. Empowerment contains a broader
understanding of participation, and that
understanding continues to develop in line with
the development of management theories and
organizational behavior (Baird, Su, & Munir, 2018).
According to Benton and Magnier-Watanabe
(2014), empowerment means enabling (to be able),
giving an opportunity (to allow), and permitting
(to permit) which can be interpreted either through
one‘s own initiative or triggered by others.
Empowerment of employees means enabling and
providing opportunities for employees to perform
management functions on a scale that is their
responsibility, both individually and in groups.
As Wåhlin-Jacobsen (2019) indicated, many
successful organizations have placed great
importance on empowerment initiatives because it is
believed that they could be conducive
to performance improvement by promoting
employee commitment to and involvement in
the decision-making process. The results achieved in
applying the concept of empowerment in various
companies is an increase in efficiency and quality in
production and service.
Khan (1997) offers an empowerment model
that can be developed in an organization.
The empowerment model is:
1. Desire. The first stage in the empowerment
model is the desire of management to delegate and
involve work.
2. Trust. After the desire of management to
empower, the next step is to build trust between
management and employees. The existence of
mutual trust among members of the organization
will create good conditions for information
gathering and suggestions for fear.
3. Сonfidence. The next step after mutual trust
is to create employee confidence by respecting
the capabilities possessed by employees.
4. Credibility. The fourth step is to maintain
credibility by rewarding and developing a work
environment that encourages healthy competition so
as to create organizations that have high
5. Accountability. Stage in the empowerment
process hereinafter is the employees‘ responsibility
to the authority given. By setting consistently and
clearly the roles, standards and objectives of
the assessment of employees‘ performance, this
stage is a means of evaluating the employees‘
performance in completion and responsibility for
the authority given.
6. Communication. The final step is
the existence of open communication to create
mutual understanding between employees and
the management. This openness can be manifested
by the existence of criticism and suggestions for
the results and achievements of the workers.
Empowerment of human resources is one of
the efforts that must be carried out for the creation
of quality human resources, having the ability to
utilize, develop and master science and technology
and management capabilities (Cucino, Del Sarto,
Di Minin, & Piccaluga, 2021).
3.1. Types of research
This study uses a qualitative approach where tries to
understand phenomena in their natural setting and
context (not in the laboratory) where researchers do
not attempt to manipulate observed phenomena
(Leedy & Ormrod, 2019; Patton, 2001; Saunders,
Lewis, & Thornhill, 2007). Qualitative research seeks
to explore and understand the different meanings of
truth by different people. In a qualitative approach,
one type of approach that is often used is the case
study approach.
Case studies are research strategies in which
researchers carefully investigate a program, event,
activity, process, or group of individuals. Cases are
limited by time and activity, and researchers gather
complete information using various procedures for
collecting data based on a predetermined time.
According to Yin (2014), a case study research is
a research approach that explores a phenomenon
in its context by using data from various sources.
In the case study approach the main focus is to
emphasize the importance of cases at each stage of
the research process and answer the problem
research that begins with the question word how or
why (Creswell, Hanson, Clark Plano, & Morales,
2007). Exploring the phenomena that exist within
the company regarding the empowerment of
employees in creative business companies, so what
is the perspective of employees regarding
empowerment carried out in the company.
In case study research, according to Alazzaz
and Whyte (2015), besides being able to use
qualitative methods, it can also use mixed methods,
namely qualitative (through semi-structured
interview analysis), and also quantitative (through
assessments using SPSS statistical analysis to
determine significance and trends in the data set).
3.2. Research participants
Sarwono (2006, p. 205) in the qualitative research of
election techniques uses a non-probability
technique, which is a sampling technique or
informant that is not based on the statistical
formulation but rather on the subjective judgment
of the researcher based on the range and depth of
the problem being examined. One non-probability
sampling technique in qualitative research is the
purposive sampling technique, starting research
Journal of Governance and Regulation / Volume 10, Issue 3, 2021
with specific objectives (Sekaran, 2013). The focus is
on improving employees‘ performance towards the
organization because this will be useful in many
ways. Improving employees‘ performance will be
translated into empowering employees, all of which
will definitely benefit the organization. Purposive
focus is where the unit of analysis chosen is
considered appropriate by the researcher. The unit
of analysis in this study is that employees have
worked at least 1 year at the company. The number
of participants in this study was 18 participants
from 4 divisions namely the project manager
division, design division, photography division,
marketing division and those working in the team on
the grounds that in-depth interviews will be
conducted with such participants so that they get
complete and in-depth information.
3.3. Location of research and sampling
The research location is one of the creative
economic ventures named Janur Biru in Surakarta.
The business is engaged in photography services
and product design and branding. The photography
industry is an industry that encourages the use of
individual creativity, skills, and talents in producing
images of a photographic object using photographic
devices, including light recording media, file storage
media, and media that displays information to
improve welfare and create job opportunities.
Meanwhile, the design industry is in dire need of
creative human resources in this field. Starting from
designing a product, graphic design, interior design,
and others really need creativity in their
3.4. Data collection
In qualitative research, interviews become a main
data collection method. Interviews allow researchers
to collect diverse data from participants in various
situations and contexts so that most of the data will
be obtained through interviews. According to Myres
(2009), interviews allow researchers to explore
the matter in depth and multidimensionally from
the participants. Whereas according to Moleong
(2008), interview is a conversation with a specific
purpose. The conversation was done by two parties,
namely, the interviewer who was asking questions
and the interviewees who provide answers to these
Type of interview in qualitative research
according to Fontana (2003) and Myers and Newman
(2007) can be classified based on the level of
formality and structure of interviews including
structured interviews, unstructured interviews and
semi-structured interviews. In this study, the type of
interview used was semi-structured interviews.
This type of interview was chosen because of
the combination of structured interviews with semi-
structured interviews so that they are less rigid and
more flexible. The interviewer has prepared a list of
interview questions. A list of guide questions usually
functions to start the interview. The order of
questions and discussion does not have to be
the same as the guide, depending on the needs at
the interview.
In semi-structured interviews questions were
prepared by the researcher is in accordance with
the topic of the problem being discussed, but there
will be a deeper search or there will be
the development of questions in accordance
with the answers or statements obtained from
the participants. This is intended to further explore
a topic based on the answers given by participants.
The interview technique is intended to get in-depth
information about employee empowerment in
creative business companies.
In interviews with participants, researchers
asked questions that related to what participants
know about empowerment employees, trust,
credibility and clarity of job descriptions.
At the time of data collection, researchers also used
tools in the process of collecting data consisting of
interviews, and review of documents such as
cameras, stationery, voice recording devices, and
other equipment used to support the process data
collection. The researcher took the data by taking
notes, recording the voice of the conversation that
was conducted between the researcher and
the participants. Long-time observation and research
takes about 6 months. The questions given to
participants are listed in Table 1.
Table 1. Transcript of the question
―Employee empowerment‖
How many years have you been working?
Then what is working according to the potential?
Employee empowerment in your opinion?
Is the work delegation in accordance with your field?
How does the job/what does the job get?
Have you been given the opportunity to be responsible
for making company policies?
What is the company‘s freedom of decision?
What awards have you received while working?
How is your relationship with the leader?
How are the relationships with other employees?
Have there been conflicts and how to solve the
The positive impact of empowerment?
During work, have you got results for yourself?
How do you deal with the character of other
Have you ever worked in a team, were you
Your expectations for the company and commitment
to the company?
How is the development from the beginning until now?
In response to high turnover, what do you think?
How do you feel working in the company?
3.5. Technique analysis
Qualitative data analysis according to Bognan and
Biklen (as cited in Moleong, 2008, p. 248), is
an effort carried out by working with data,
organizing data, categorizing into manageable units,
synthesizing them, finding patterns, finding what is
important and what is studied, then decide what can
be told to others. Based on the above definition it
can be concluded that the first step of data analysis
is collecting existing data, arranging systematically,
then presenting the results of the research to others.
Data analysis begins with conducting in-depth
interviews with key informants, namely someone
who truly understands and knows the object‘s
research situation. After conducting interviews, data
analysis begins with making transcripts of interview
Journal of Governance and Regulation / Volume 10, Issue 3, 2021
results, by playing back the recording of
the interview results, listening carefully, then writing
words that are heard according to what is on
the tape. After the researcher writes the results of
the interview into the transcript, then the researcher
must read carefully to then do the data reduction.
The data analysis technique used in this study uses
steps as proposed by Miles and Huberman (2018),
namely as follows:
1. Data collection. Data collection is an integral
part of data analysis activities. The data collection
activities in this study were using interviews and
documentation studies.
2. Data reduction. Data reduction, interpreted
as a selection process, focuses on simplifying and
transforming crude data that arise from written
records in the field.
3. Display data. Display data is the description
of a set of structured information that gives
the possibility of drawing conclusions and taking
4. Conclusion, verification and affirmation
(conclusion drawing and verification). It is the final
activity of data analysis. Draw conclusions in
the form of interpretive activities, namely finding
the meaning of the data that have been presented.
Interactive model in the data analysis model of
Miles and Huberman (2018), is depicted in
the following figure:
Figure 1. Interactive model by Miles and Huberman (2018)
4.1. General description of Janur Biru
Janur Biru company is a creative economic company
founded two years ago and is engaged in
photography, product design and custom branding.
The total number of employees is 18 people and is
divided into 4 divisions, namely project manager
division, design division, photography division,
marketing division and those working in the team.
Creative economic companies in Indonesia have
a different company scale and number of employees.
Creative economy companies are at the same level as
Janur Biru which has quite a lot of employees under
20 people. An example is a company in Yogyakarta
that is engaged in interior design consulting services
named Oudenteak and has 14 employees but has
already received the first ISO 9001 certification in
the field of interior business projects. Table 2
presents brief data on participants of Janur Biru‘s
employees including age, compensation and training
received from the company.
Table 2. Brief data about participants
Participant A
Salary, incentive
Participant B
Salary, incentive
Participant C
Salary, incentive
Participant D
Salary, incentive
Participant E
Salary, incentive
Participant F
Salary, incentive
Participant G
Salary, incentive
Participant H
Salary, incentive
Participant I
Salary, incentive
Participant J
Salary, incentive
Participant K
Salary, incentive
Participant L
Salary, incentive
Participant M
Salary, incentive
Participant N
Salary, incentive
Participant O
Salary, incentive
Participant P
Salary, incentive
Participant Q
Quality control
Salary, incentive
Participant R
Quality control
Salary, incentive
Data collection
Data reduction
Data display
Journal of Governance and Regulation / Volume 10, Issue 3, 2021
4.2. Data presentation
In this qualitative method of research, researchers
obtained secondary and primary data from Janur
Biru through various means, namely through
observation and interviews, document studies and
several photo-taking interviews with resource
persons and photos of research locations along with
company activities. Some data and information are
also obtained from natural conditions (natural
settings) where researchers directly see and observe
the company‘s operational activities and conduct
interviews with employees or operational activities.
Main data and information were collected
through in-depth interviews with various resource
persons who are believed to be able to provide data
and information for the purpose of this study.
The resource persons represent top management to
the bottom management. The resource persons that
were observed and interviewed as data sources and
directly provide data to researchers, are:
1) Project manager, job desk project manager
coordinates each project to the team, oversees
the production process, until the delivery of
the company‘s products to clients.
2) Marketing, job desk marketing is searching
for new clients and dealing with clients.
3) Photographer and videographer, creates
photo and video as clients demand.
4) Editor, is editing data photo and layout.
5) Quality control, is responsible for
monitoring project from the beginning until
finishing product and makes sure that the product is
in compliance with the company‘s standard. Data
analysis techniques are carried out by the process of
collecting data results interview, then the data is
reduced, and presented or presented in descriptive
narrative form, then conclusions are drawn in
the form of interpretation activities, namely finding
the meaning of the data that has been presented.
4.3. Data analysis
In the process of analyzing data with a qualitative
approach, the analysis is carried out on interview
data, direct observation data and document study
results. Data analysis here is processed by compiling
data so that it can be interpreted. Arranging data
means classifying it according to topics, questions,
categories and parameters and dimensions
determined by the researcher. This data analysis is
a drafting process, simplifying data to be simpler
and easier to read and easily integrated. Through
qualitative data analysis, it is expected that it will be
able to reveal and provide accurate information so
that it greatly helps the process of interpretation of
the data and information obtained. In addition, it is
expected the meaning of the phenomena occurring
description and facts on human resource
Based on the data presented previously, below is
the analysis of researchers based on the dimensions
and parameters that have been previously set.
1. Desire
The purpose of management is to decentralize
and participate in work by discovering problems,
expand employee participation, encourage
employees to create new perspectives and think
about the company‘s work strategy, describe team
expertise and train employees to carry out their
work. There is also training to train employees,
for example to carry out work, to attain targets that
must be achieved in the marketing division. In terms
of creating new perspectives and work strategies,
there is no incentive for employees to create new
perspectives and think about work strategies of the
company. This is because all work strategies have
been created and determined by the owner of Janur
Biru. These results are in accordance with previous
research (Leovani, 2016) that the owner‘s desire to
delegate and involve work through problem
identification broadens employees‘ involvement,
encourages employees to create new perspectives
and think about the company‘s work strategy,
describes team expertise and trains employees in
carrying out work.
2. Trust
Based on the results of the respondents‘
answers about empowerment from the trust
dimension, there is mutual trust between employees
and management. One part of employee
empowerment is the delegation of authority from
superiors to subordinates within the company.
A real example of delegation is by entrusting tasks
and work to employees. This is in line with previous
research (Leovani, 2016) which states that employee
empowerment through trust parameters is that they
trust each other among members of
the organization. Greasley et al. (2008) reveal that
empowerment is designed to delegate authority by
superiors to their subordinates and share
responsibility with them. Delegation of authority
must be based on trust.
Trust must be based on objective
considerations regarding skills, abilities, honesty, so
as to achieve the expected results. Delegation of
authority is intended so that employees feel that
they are given trust by superiors, in this case by the
manager. Delegation of authority can be in the form
of data and information provided by superiors to be
forwarded to other employees in a team. Decision-
making is a part of the delegation of authority
because employees are given freedom to make
decisions with all the risks that must be borne.
Employees prepare themselves to perform tasks and
are trying to do their best to achieve the goals of
individuals, teams, and organizations. With
the existence of empowerment, communication is
created and the atmosphere is a conducive work
environment, where it affects employees in
their work.
3. Confidence
Based on the respondent‘s response to
authorization from the management confidence
dimension, enhance employee confidence by
respecting employees‘ abilities. Empowerment
means developing the mentality of employees‘
confidence to ―be able to work‖ positively by
the employee himself/herself. This ―able to work‖
confidence grows out of the employees‘ self-
confidence in their ability to work on their jobs.
With previous experience, it is enough to make
employees understand what must be done for
the company. Understanding assignments as things
that can be measured through work ethic.
Journal of Governance and Regulation / Volume 10, Issue 3, 2021
For employees who already have a work ethic in
their work, these employees have been able to
manage their commitment to the company by
This finding is in line with previous research
(Leovani, 2016) about the results of respondents‘
answers regarding empowerment from
the confidence dimension of management that raises
employees‘ self-esteem by respecting the abilities
possessed by employees, but as for delegating tasks,
there is no delegation of tasks, while for Janur Biru
there has been a delegation of tasks from the owner.
The company needs employees who are
responsible, have initiative, have creativity, are able
to participate directly for the company, and are able
to accept the tasks given so that the company has
a competitive advantage through its human
resources. The management of the company realizes
that it is important for the company to have
employees who are able to be responsible for work
done, managing work and roles as employees,
employees can think freely about what is done, so
only when they are given the task to complete
the work that the employees respond actively to
the work that is managed and completed in
accordance with the roles and targets of each
individual and team.
4. Credibility
The employee‘s response to credibility shows
that credibility is maintained through appreciation.
It creates a working environment that encourages
healthy competition, improves performance by
treating employees as strategic partners, and sets
higher goals in all parts of the work, brings in
personal initiative and helps resolve differences in
setting goals and priorities. This finding is in line
with previous research (Leovani, 2016) about
the results of respondents‘ answers concerning
empowerment from the credibility dimension, but
there is one difference in terms of setting work goals
and priorities. In the previous research, the matter
of setting goals and prioritizing work was not
delegated to employees because there was already
a standard operating work from the company.
In Janur Biru, goal setting and work priorities are
delegated to employees with the aim that employees
consciously have work goals and priorities.
5. Accountability
The employees‘ responses as to accountability
indicate that there is indeed an employee‘s
responsibility for the delegated authority. At this
stage, through consistent and clear assessment of
the role, standards, and goals of employee
performance evaluation, through training channels,
clarifying the scale of tasks or goals, clear tasks or
goals, assistance, etc., the completion and
responsibility of employee performance conduct
assessments. For internal employees, the results of
this survey are consistent with the completion of
the workload. This finding is in line with previous
research (Leovani, 2016) about the results of
respondents‘ relies to empowerment from
the accountability dimension.
6. Communication
Employees‘ responses to communication show
that there is open communication to create mutual
understanding between employees and management.
Management establishes open communication
policies through discussion. The effect of
empowerment is as a communication process for
exchanging facts, ideas and opinions with other
employees. There are several reasons why
communication is important in a company, and that
is because communication allows employees to
participate in the company and increases
the motivation to participate in good performance
and increase commitment to the organization. This
was revealed by Clarke (2005), namely that
the positive impact of empowerment shapes
communication within the work team and is open to
other workers. Effective communication requires
the efforts of both parties to arrive at the same
meaning. Management must create the climate
needed to provide open communication.
Communication skills will cause an increase in
gaining understanding. Therefore communication
basically creates understanding. This finding is in
line with previous research (Leovani, 2016) about
the results of respondents‘ responses to
empowerment from the communication dimension.
Based on the results of the interview, it can be
concluded that the employee empowerment carried
out by the Janur Biru company is in accordance with
the empowerment theory by Khan (1997). According
to this research, empowerment is a continuous
interpersonal relationship to build trust between
employees and management. And from the results
of in-depth interviews, it was found that employees
were given great trust by management and were able
to carry it out. It‘s just that it needs to be pushed
again for employees to be involved in work
strategies so that more creativity emerges.
The results of a case study on Janur Biru‘s
creative business conclude that creativity and
technological understanding must be possessed by
Janur Biru employees in order to survive in this
pandemic era. In the case study results of Almeida
(2020), whose research contributed to creative
business start-ups in Portugal during the COVID-19
pandemic era, a creative economy can restore
an economy that was hit by the pandemic.
Meanwhile, Khan (2021) who examined cases in
the hotel industry during the pandemic era, stated
that hotels that have touch screen reception and
payment technology can survive the pandemic
conditions. In the end, a case study conducted by
Secundo, Mele, Sansone, and Paolucci (2020) finally
examines technology-based entrepreneurship
education which is prepared for students as
provisions after graduating from college, especially
in this pandemic era.
The purpose of this article is to verify the result of
employee empowerment performed by employee
practices. Based on the results of research
conducted at Janur Biru about employee
empowerment, the following conclusions can be
Desire: the desire of the owner of Janur Biru
was to delegate and involve work through problem
identification, expand engagement of employees,
encourage employees to create new perspectives and
think about the company‘s work strategy, describe
team expertise and train employees in carrying out
work. There is no incentive for employees to create
new perspectives and think about company‘s work
Journal of Governance and Regulation / Volume 10, Issue 3, 2021
strategies. This is because all work strategies have
been created and determined by the owner of
Janur Biru.
Trust: based on the results of the respondents‘
answers about empowerment from the trust
dimension, there is mutual trust between employees
and management. Employee empowerment is used
to delegate authority from superiors to subordinates
in the company and is a part of employee
empowerment, where employers entrust their tasks
and jobs to employees.
Confidence: based on the results of
the respondents‘ replies about empowerment from
the confidence dimension of management, employee
confidence will increase if management can
appreciate the abilities of employees.
Credibility: employees‘ responses to credibility
indicate that there is credibility that is maintained
by appreciation and it develops a work environment
that encourages healthy competition, a high
performance by looking at employees as strategic
partners, sets increased targets in all parts of
the work, introduces individual initiatives and helps
resolve differences in setting goals and priorities.
Accountability: the employees‘ responses to
accountability show that indeed there is employee‘s
responsibility for the authority given. By setting
consistently and clearly the role, standards and
objectives of the assessment of employee‘
performance, this stage is a means of evaluation of
employees‘ performance in completion and
responsibility for the authority given through
training channels, the size of the task or the right
target, and assistance to employees within
completion of workload.
Communication: employees‘ responses to
communication show that there is open
communication to create mutual understanding
between employees and management. Management
establishes open communication policies through
discussion and discussion. The impact of
empowerment is communication as an exchange
process for facts, ideas, opinions with other
employees. There are several reasons why
communication is important in the company, that is
because communication brings employees to be
involved in the company and increases motivation to
involve good performance and increase commitment
to the organization.
The finding of this article is to suggest the best
strategies to make employee empowerment better
for the company. In creative industries, creativity is
really needed so that the strategy formulation for
employees is very important to increase self-worth
in empowerment practices, rather than just being
subject to the interests and identity regulations of
the management. Thus, the dynamics of the changes
seen did not look at just one aspect, but rather
a struggle of the whole aspect. This study also
proposes an approach to identification and
self-identification as interaction phenomena based
on the analysis of the categorization of membership.
Thus, the identification approach by maximizing
strengths and minimizing weaknesses in each
individual employee can improve our understanding
of how work relationships are organized in modern
organizations, especially in the creative economy.
In particular, this article shows the importance of
considering employee empowerment through
categorization and prediction when discussing
members of an organization, especially with regard
to the development of values in employees.
This study has several limitations. First, the
sample taken included employees from companies
that were relatively new and it only amounted to
18 people. Therefore, although our study offers
some important insights in relation to employee
empowerment in creative industries, future
investigations are expected to use a larger sample
and generalize the model. In addition, given that
the practices applied in the creative industry are
experienced in different ways depending on
the employees, future research can also measure
the structural empowerment of employees. Third,
the interview was limited to the employee
empowerment component according to Khan (1997)
and did not include compensation and employees
training in depth.
Further researchers may be able to find
perceptions of employee empowerment and more
broadly and o analyze the new literature on
empowerment theory. In addition, future researchers
may further expand the network of participants and
companies in creative business in order to have
comparisons. Further researchers can explain
empowerment from a manager‘s perspective,
because it is necessary so that there is continuity
between employees and managers.
The implication for employees is to know well
what kind of empowerment concept is applied by
company management. It is suggested to be
sensitive to the program, the company environment,
the changes that occur with developments in
the creative world so that employees are ready to
face challenges and competition. For managers, it is
not only about providing empowerment programs in
the company, but also seeing the positive impact
generated by employees. There needs to be deeper
supervision with employees because various changes
in the organizational environment are continuous so
the supervision of both superiors and employees
can detect changes, both employees and
the organization are ready to face challenges.
Therefore, organizations need to start seeing and
cooperating with employees as strategic partners for
the betterment of the organization. There needs to
be further discussion regarding employees‘
involvement and empowerment so that the
boundaries are clearer. Evaluation is needed because
with estimation the company can find out how
precisely employees carry out their functions and
duties. In addition, the results of the employees‘
evaluation will provide important information for
the employee development process.
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... The company environment is crucial to developing the creative world for employees so that they are prepared to face the challenges and competition that surround them (Utomo, Yulia, & Khristiana, 2021). Employment rates are defined as a measure of the extent to which available labor resources, i.e., people available to work (OECD, 2021b). ...
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... The company environment is crucial to developing the creative world for employees so that they are prepared to face the challenges and competition that surround them (Utomo, Yulia, & Khristiana, 2021). Employment rates are defined as a measure of the extent to which available labor resources, i.e., people available to work (OECD, 2021b). ...
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While empowerment practices have been the subject of considerable debate, little attention has been paid to how employees shape the outcomes of these practices through their active participation. Through analyses of interactions in workplace voice activities, this study shows how developing initiatives to improve the local organization of work is complicated by the fact that supporting initiatives as an employee can lead to undesired identity ascriptions from other participants, especially in relation to employees’ organizational identification or disidentification. By drawing on the method of membership categorization analysis, it is argued that the appeal of voice activities for employees depends on how the terms of “becoming empowered” are negotiated in practice, and that these negotiations shape the employees’ participation in the practices.
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Creativity and innovation have been buzzwords of managerial discourse over the last few decades as they contribute to the long-term survival and competitiveness of firms. Given the non-linear, causally ambiguous, and intangible nature of all innovation-related phenomena, management scholars have been trying to uncover factors that contribute to creativity and innovation from multiple lenses ranging from organizational behavior at the micro-level to strategic management at the macro-level. Along with important and insightful developments in these research streams that evolved independently from one another, human resource management (HRM) research – especially from a strategic perspective – has only recently started to contribute to a better understanding of both creativity and innovation. The goal of this chapter is to review the contributions of strategic HRM research to an improved understanding of creativity at the individual-level and innovation at the firm-level. In organizing this review, the authors rely on the open innovation funnel as a metaphor to review research on both HRM practices and HRM systems that contribute to creativity and innovation. In the last section, the authors focus on more recent developments in HRM research that focus on ambidexterity – as a way for HRM to simultaneously facilitate exploration and exploitation. This chapter concludes with a discussion of future research directions.
Purpose The purpose of this case study is to explore the first-hand aftermath of the effects bestowed upon the travel industry by the coronavirus. To connect the effects to a real-life example, a particular hotel is being used as the reference point. Its ups, its downs and its day-to-day operations are reflected upon within the case study. Design/methodology/approach A real-life approach to this case was taken. To simplify and to further explain each of the concepts presented, mentioned and explained, the author referred back to the subject hotel, which has experienced its ups and downs owing to the coronavirus pandemic. The author has also discussed the benefits and drawbacks of each of the concepts explained within the case as well, along with real-life examples of other hotels and their specific experiences. Findings It was founded that economy hotels are faring better than most, if not all midscale and upscale properties. This success is attributed to multiple reasons: the availability and acceptability of contactless payments through Cash App and Venmo, the exterior access to the guestrooms, through the parking lot, rather than a hallway. Originality/value This case, in the author’s humble opinion, is as original as can be. Many concepts that are prominent within the business were mentioned, and further explained them and their relevancy by connecting it to the subject hotel, which too has experienced the effects of coronavirus – and the effects of the executive actions that were implemented in response of the virus.
Purpose This study explores the contribution that tech startups can provide in the fight against COVID-19. The Tech4Covid movement is presented to that effect, which has joined several Portuguese tech startups. This initiative gathers more than 5,000 volunteers and 28 ongoing projects in several interdisciplinary areas, including science, technology, health and education. Design/methodology/approach Two qualitative methods are adopted: the case study and the field research technique. This joint approach allows exploring in-depth the relevance and impact of the different areas included in Tech4Covid movement. Data were collected both from primary sources, namely by the authors' participation in the movement and by the use of secondary sources from each project. Findings The findings reveal three main areas in which the 28 ongoing projects can be categorized, respectively: support to health professionals and hospital equipment, health and education services and business and leisure. These projects offer direct and indirect contributions to the fight against COVID-19. From a perspective, they were initially designed to support health professionals in gathering protective equipment and supporting screening for suspicious cases. From another perspective, they also offer indirect benefits to citizens and the local economy. Originality/value This paper addresses a recent phenomenon with a dramatic impact on public health, social and economic dimensions. The study provides essentially practical contributions by revealing how Portuguese technological startups were organized and worked together to respond to the COVID-19 pandemic. It is expected this study will serve as a reference for other countries and communities that intend to replicate this model.
Purpose This paper combines the literature on knowledge transfer and that on organizational behavior to analyze how perceived empowerment and perceived engagement affect knowledge transfer offices’ (KTOs’) performance, measured in terms of the number of license agreements. Design/methodology/approach The authors measured the cognitions which constitute perceived empowerment and perceived engagement through a survey sent to Italian KTOs’ professionals. The authors performed “fuzzy set qualitative analysis” to investigate if this cognition, together or in isolation, may influence KTOs’ management performance, measured by the number of license agreements. Findings The results highlight the role of individual cognitions in influencing KTOs’ performance. Furthermore, an important finding from the analysis of the main configurations is that the co-presence of perceived engagement and perceived empowerment leads to more license agreements only in the presence of specific individual cognitions. More precisely, the level of organizational citizenship behavior, the degree to which an individual influences results at work (degree of impact) and the value of a work goal (degree of meaning) are the cognitions which lead to a higher number of license agreements. Originality/value Despite the growing interest in the investigation of the determinants of KTOs’ performance, a relevant research gap still concerns the explanation of KTOs’ performance considering individual cognitions such as attitudes, norms, perceived behavioral control and intentions. This study looks at the combined effect of the individual cognition of perceived engagement and perceived empowerment on KTOs’ performances.
Purpose Entrepreneurship Education (EE) is increasing throughout the world. In 2012, the Italian Ministry of Education, University and Research (MIUR) financed Contamination Labs (CLabs), which are laboratories that are aimed at developing entrepreneurial mindsets in all university students. This study analyses the entrepreneurial learning process mechanisms adopted in these CLabs. Design/methodology/approach An ethnographic case study was performed in two Italian CLabs from October 2017 to December 2019. Findings Findings demonstrate that the CLabs in Italy are promising Entrepreneurship Education Centres which create programmes to develop an entrepreneurial mindset in students with different educational backgrounds and levels. Interdisciplinarity in the composition of the student teams, virtuous contamination of knowledge and experience between the students and the stakeholders from the entrepreneurial ecosystem are the key pillars to foster an entrepreneurial mindset in all the students. Research limitations/implications The limitations of this work regard the need to expand the analysis to all the other CLabs created in Italian universities. Practical implications The findings provide indications that may be used to guide a university faculty in the design and management of Entrepreneurship Education Centres in collaboration with entrepreneurs, corporations, student clubs, incubators and representatives of the local entrepreneurial ecosystem. Moreover, the results point out a need to develop interdisciplinary entrepreneurial programmes. Originality/value The originality resides in the analysis of a novel type of Entrepreneurship Education Centre in Italian Universities created as the result of an ad-hoc Italian policy.
Empowerment has been argued as a viable strategy to enable frontline employees (FLEs) to manage the complexities of service encounters. Organisations must cascade insights from analytics to frontlines for dynamic (re)bundling of service elements while serving customers. However, very little is known on how FLEs are empowered in analytics-driven services. This study addresses these research gaps, drawing on a systematic literature review and in-depth interviews (n = 30), followed by conceptualisation and validation of an empowerment scale through a pilot (n = 50) and the main study (n = 304). This research confirms empowerment as a second-order construct consisting of six dimensions namely, decision making, discretionary skills, information access, knowledge, tools and training. The predictive power of the scale is validated through PLSc and PLSpredict (k = 10) using a training sample (n = 274) and a holdout sample (n = 30). Theoretically, this work extends FLE empowerment to analytics-driven services. Practically, the study informs managers to complement their investments in technology with an internal orientation program to empower FLEs to effectively link with customers and seize opportunities.