Vol. 3 (1) Jul. 2021

Article ID. JHSSR-1095-2021

Analyzing Business Model for Innovative Rattan Creative Industry Center in West Java and Central Kalimantan Province

Lelo Sintani, Bambang Mantikei, Arya Mulyapradana, Ary Dwi Anjarini & Henry Loupias

Keywords:

Business model innovation, Creative industry, Handicraft, Rattan, Value proposition

Download Full PDF

Abstract:

This study aims to analyze the practice of business models (BM), particularly the use of business model innovation (BMI) in the rattan creative industry centers in Katingan Regency, Central Kalimantan Province, and Cirebon Regency, West Java Province. Additionally, the study will compare the practice of BM/BMI between the two provinces. This research uses qualitative approach in a case study method. Primary data has been obtained through interviews with several businessmen, workshop owners, home industry owners, exporters and craftsmen. Meanwhile, secondary data has been obtained through literature studies. The results show that centers in both of the provinces have differences in terms of their BM practice, market segments, products, value proposition, competitiveness, and types of innovation. The center of the Katingan rattan creative industry is the local market which is classified in the form of BM. Meanwhile, the business orientation of rattan entrepreneurs in creative industry centers in Cirebon is a global market that produces export products, especially furniture. Its business practice is a type of innovation business model (BMI) as an effort to face competition, both from foreign and domestic competitors. However, in general Cirebon rattan handicraft products are products of imitation designs of buyers so that the value proposition is less strong. This practice of imitation can be a weakness in the face of global business competition in the creative industry which demands creative, innovative, novelty, and value proportion. However, these elements are the competitive advantage of BMI.

DOI: https://doi.org/10.37534/bp.jhssr.2021.v3.n1.id1095.p155