Journal article
Creative Economy Adopting Local Wisdom on Small Enterprises in Denpasar City Bali Indonesia
Agung Parameswara Anak Agung Istri Ngurah Marhaeni MADE HENY URMILA DEWI
Volume : 13 Nomor : 5 Published : 2020, August
International Journal of Innovation, Creativity and Change
Abstrak
The study focuses on creative small enterprises (SEs) based on local wisdom in the city of Denpasar, Bali, Indonesia. Based on local wisdom, initiative was taken to implement the local economic power in Denpasar, as a smart creative city. This research is conducted with the aim to examine the effect of technology, entrepreneurial orientation, wages, quality of human resources, and productivity towards the absorption of labour in creative small enterprises (SEs) based on local wisdom in Denpasar City, Bali. It also examines the indirect effect of technology, entrepreneurial orientation, wages, and quality of human resources to absorption of labour through productivity. This study examines 158 samples of creative small enterprises (SEs) based on local wisdom. The determination of this amount is based on criteria in which the population belongs to one of the sub-sectors of the creative economy, as well as the products produced by the entrepreneurs have a local wisdom content. To answer the research problem and examine the research hypothesis, the researchers used Structural Equation Modeling (SEM) analysis. The results of this study conclude positive and significant effect on the absorption of labour in small creative industries based on local wisdom in Denpasar City with its determinants. There are significant indirect effects of the determinant variables through productivity on labour absorption in creative small enterprises (SEs). The interpretation of the cultural values contained is expected to be carried out by the entrepreneur as a development strategy, and the strength of creative industries based on local wisdom. Key words: Creative industry, orange economy, labour absorption, local wisdom, Small Entreprises (SEs).