A Literature-Based Study on Leveraging Cultural Elements to Boost MSME Product Value

A Literature-Based Study on Leveraging Cultural Elements to Boost MSME Product Value

I Ketut Sida Arsa ¹, I Made Mertanadi ², Ni Luh Putu Agustini Karta ³ , Ni Made Ary Widiastini ^4*

^1,2 Faculty of Art and Design, Institut Seni Indonesia, Institut Seni Indonesia Denpasar

³Faculty of Business and Tourism, Universitas Triatma Mulya

⁴Faculty of Economics Universitas Pendidikan Ganesha

^*Corresponding Author

DOI: https://dx.doi.org/10.47772/IJRISS.2025.9010112

Received: 29 December 2024; Accepted: 07 January 2025; Published: 05 February 2025

ABSTRACT

This study aims to examine how cultural elements can be a major added value in strengthening the identity of MSME products in the global arena. With a literature study approach, this study analyzed 38 relevant articles obtained through Google Scholar and other academic databases using keywords such as “cultural product design”, “SME product innovation”, “Kansei Engineering”, “ecodesign”, and “design management in MSMEs”. Although many studies have discussed culture-based innovation and design, the main gap found is the lack of integrated guidelines that link the stages of MSME growth with the application of culture-based design principles and sustainable innovation. Therefore, this study proposes an approach based on five stages of MSME development, namely at the initiation stage, information about culture-based product design is needed; at the growth stage, social networks are used to drive product innovation; at the stability stage, Kansei Engineering is adopted to meet the emotional needs of consumers; at the expansion stage, ecodesign principles are applied to increase global competitiveness; and at the maturity stage, MSME actors need to face complex design management challenges while ensuring sustainable innovation to remain relevant in the market. This study offers an integrated way to consolidate research related to culture-based design, while the scope for further research is directed at developing a culture-based strategy model for MSME business sustainability and empirical studies on specific MSME sectors.

Keywords— Cultural Elements; Literature Approach; MSMEs; Product Design

INTRODUCTION

The Product design is an important consideration for every business actor today because it can determine the success of a product’s sales. The literature has recognized the development of culture-based product design as an effective strategy to create unique products that stand out from competitors (Purba et al., 2018). According to culture-based branding theory, products that display local cultural elements are able to provide a strong emotional bond with consumers and add attractive aesthetic value. The article “A History of the Concept of Branding: Practice and Theory” discusses culture-based branding theory through the development of branding from a historical perspective and symbolic meaning in culture (Bastos & Levy, 2012). One of the theories mentioned is Consumer Culture Theory (CCT), which explores how brands become cultural symbols and integral parts of consumer identity beyond the underlying product function. This theory of culture-based branding underscores that consumers perceive brands not just as business identities, but also as tools that embody social and cultural values. The article explains that consumers buy products not only for their function but also for the meaning they symbolize in culture. Culture-based design can be a powerful strategic tool to increase market appeal because consumers tend to value products with a distinctive cultural identity, which are difficult to imitate by standard products (Prasetyo & Febriani, 2020; Hubeis, 2012; Zainurossalamia, 2020). With this approach, MSMEs should be able to strengthen their position through unique and authentic designs that reflect the richness of local culture and values that distinguish their products in the global market.

Many MSMEs face challenges in incorporating cultural elements into their product designs during the development phase. Several studies by Hermawan, (2022); Amalia et al., (2012); Sari & Asad, (2018); Darwanto, (2013)show that limited resources and design management capabilities in MSMEs hinder their ability to adopt culture-based designs effectively. In addition, many MSMEs still rely on standard designs that do not reflect local cultural elements, reducing their attractiveness in the eyes of consumers who are looking for products with unique values and characteristics, even in line with developing trends. In many cases, MSMEs also do not have access to professional designers or supporting institutions that can help them implement cultural elements in product design effectively.

The discrepancy between the ideal and actual experiences of business actors, particularly MSMEs, highlights significant research gaps in the literature concerning the role of cultural elements in MSME product design and their influence on market value. Research (Lusch, 2014) has shown the great potential of cultural elements in increasing product appeal. His book provides a perspective on the value created through product and consumer interactions, which is relevant to culture-based products that can create added value through consumer emotional experiences. Nakata & Sivakumar, (2001) have conducted more in-depth studies on how culture-based design can enhance the value of MSME products and attract international consumers. In their study Nakata & Sivakumar, (2001) hey describe how the marketing concept adapts to the national culture and show how cultural elements can influence product acceptance in international markets, which is relevant to culture-based design in MSMEs. In addition, studies are still needed that explore effective ways for MSMEs to integrate cultural elements with modern design methods.

Cultural elements in product design have proven to enhance the value of MSME products in the global market. MSMEs face the primary challenge of crafting designs that are not just visually appealing, but also imbued with emotional value and profound cultural significance for their consumers. Products with local cultural elements can provide uniqueness, increase competitiveness, and connect consumers with a broader cultural identity. However, MSMEs often do not have the knowledge and resources to effectively integrate these cultural elements into their products. The goal of this study is to investigate the integration of cultural elements into MSME product design, with the aim of enhancing the product’s value and competitiveness in the market. We review the concepts related to culture-based design, relevant design techniques and methods, and their impact on market acceptance through a literature review of 38 related articles. This study contributes to providing guidance for MSMEs in creating unique, culture-based, and commercially relevant product designs. This study concentrates on cultural elements as the primary source of added value, exploring ways to enhance the distinctiveness of MSME products in the global market.

Local cultural elements significantly boost product competitiveness in the market, according to research on culture-based product design (Gumulya et al., 2023; Tristiyono et al., 2018; Wibisono et al., 2022; Dwitasari et al., 2022; Bangun et al., 2023). According to Kansei Engineering theory, product design must be able to influence consumer feelings and desires, which in this context can be achieved through attractive cultural elements (Nagamachi, 2003; Suzianti & Aldianto, 2020; Hartono, 2021; Ushada et al, 2019). Other studies emphasize that cultural elements can be a source of innovation and unique product development, especially for MSMEs in developing countries (Aksoy, 2017; Lita et al., 2018 Burtic, 2018). Research on MSMEs in the creative industry in Indonesia shows that products with cultural elements such as batik motifs or traditional symbols have a special appeal to domestic and international consumers (Raya et al., 2021). The concept of “cultural design,” which argues that cultural elements can provide authentic value that competitors cannot easily imitate, also supports this (Acklin et al., 2013). This study integrates various theories concerning cultural value in products and explores their application to MSMEs. This research model presents a framework that describes the relationship between cultural elements, product design, and increasing product added value.

METHODS

This study uses a literature study approach that aims to understand the role of cultural elements in MSME product design, especially in creating added value and attracting consumers. This literature study collects and analyzes information from relevant articles on culture-based product design, innovation, and design management strategies for MSMEs. We obtained the main sources of articles from academic journals available on Google Scholar and other trusted databases, with a focus on articles that discuss the role of cultural elements in product design, design techniques like Kansei Engineering and ecodesign, and the challenges and opportunities MSMEs face in implementing culture-based design. We collected literacy data by searching for relevant articles using keywords like “cultural product design,” “SME product innovation,” “Kansei Engineering,” “ecodesign,” and “design management in SMEs.” We selected 38 articles from the search results, focusing on cultural aspects and product design in MSMEs, for further analysis. The selected articles must meet the following criteria: (1) focus on product design with integration of cultural elements; (2) have a context or case study that is relevant to MSMEs; and (3) use a method that includes a discussion of the added value and market attractiveness of culture-based products ethical approval code.

RESULTS AND DISCUSSION

Analysis of UMKM Product Design Articles

This study sources its study material from academic journals available on Google Scholar and other trusted databases, emphasizing articles that explore the role of cultural elements in product design, design techniques such as Kansei Engineering and ecodesign, and the challenges and opportunities faced by MSMEs in implementing culture-based design.

Table 1. Article Review

Each article underwent a thorough examination and comparison with other articles to verify the validity and reliability of the findings. This approach aims to gain a comprehensive understanding of culture-based design and provide relevant recommendations for MSMEs in integrating cultural elements into their product designs. This method was carried out to identify the most effective culture-based design approaches for MSMEs, as well as identifying challenges that still need to be overcome so that MSMEs can utilize the added value of cultural elements in their product designs.

Cultural Element-Based Design to Increase the Value of MSME Products Through a Literature Approach

We used qualitative data analysis methods, based on the (Miles & Huberman, 2002) model, to analyze cultural elements in the design of MSME products to enhance their value. During the data collection stage, we conducted a literature search on a reliable database, sorting and selecting articles that met the criteria. We also carried out data reduction to obtain articles that aligned with the study’s target, which led to the formation of themes. We sorted and classified 38 articles into the following categories (1) culture -based product design, (2) product innovation through social network, (3) design method by Kansei Engineering, (4) implementation of eco-design for sustainability; (5) challenges of design management in MSMEs.

Table 2. Classification of Articles and Their Contribution to MSMEs

The results of the analysis show that cultural elements have a significant influence on increasing the added value of MSME products, both aesthetically, emotionally, and commercially. Products that integrate cultural elements, such as traditional motifs, local symbols, or cultural narratives, can increase visual appeal while strengthening consumers’ emotional connections with the product. (Indarti & Postma, 2013) research on furniture products in Indonesia found that the addition of cultural elements not only attracts consumers’ attention but also creates a deep emotional connection. In addition, (Suzianti & Aldianto, 2020) showed that the Kansei Engineering method is effective in designing designs that are able to convey cultural values ​​aesthetically and psychologically, thereby increasing consumer appreciation of the product. Literature analysis of 38 articles obtained from Google Scholar, other relevant databases, shows a research gap, namely the lack of a comprehensive approach that connects the application of culture in product design with the stages of MSME development, from initiation to maturity. This study proposes a stage-based approach, where culture-based design is introduced at the early stage to build product identity, while at the growth and maturity stages, strategies such as the application of Kansei Engineering and ecodesign are integrated to expand the market and improve business sustainability. This study underlines the importance of MSMEs’ mastery of culture-based strategies that not only create a unique identity but also provide a competitive advantage in the increasingly competitive global market. For further research, it is necessary to develop a culture-based strategic framework that can be applied to various MSME sectors, as well as empirical studies that evaluate the effectiveness of implementing culture in design on the sustainability and competitiveness of MSMEs in various industry contexts.

Figure 1. Life Cycle of MSME  Business Development Design Based on Cultural Elements

Figure 1 above explains that MSMEs undergo initiation, growth, stability, expansion, and maturity stages. Each stage involves a specific process that necessitates distinct management. At the initiation stage, which is the initial stage of product development, MSMEs focus on building an identity to be able to attract consumers with culture-based products. At the growth stage, once the market has accepted the product, MSMEs start collaborating through social networks to speed up innovation and expand their market reach. Following this, MSMEs transition into the stability stage, where they concentrate on enhancing the product’s emotional appeal using the Kansei Engineering method to align with consumer preferences. The next stage is expansion, which requires MSMEs to consider sustainability and begin to adopt ecodesign to attract consumers who care about the environment. The final stage, known as maturity, represents the pinnacle and greatest challenge for MSMEs. During this stage, business actors must confront increasingly complex design management challenges and ensure sustainable innovation to stay relevant in the market and align with market needs and desires.

When MSMEs are in their early stages, entrepreneurs can utilize culture-based design to differentiate their products in a competitive market, especially to highlight local or cultural identity as a competitive advantage (Gumulya et al., 2023; Kusumawardhani & Mccarthy, 2013; Raya et al., 2021). This is relevant for MSMEs that have the potential to reach consumers who are interested in products that reflect cultural values. MSMEs require product innovation to grow, and entrepreneurs require support from social networks and collaboration with stakeholders to boost creativity and expedite product development (Jafari et al., 2010; Stulties, 2009; Indarti & Postma, 2013; Liao & Barnes, 2015; Qin et al., 2016). By utilizing social networks, MSMEs can access resources, new ideas, and external support that are important for developing new products or technologies.

Stable MSMEs, who also have products that have been tested in the market, must be able to increase customer loyalty or product appeal through designs that focus on consumer emotional experiences. At this stage, the Kansei Engineering method assists MSMEs in comprehending consumer emotional preferences (Suzianti & Aldianto, 2020; Germani et al., 2012), enabling them to better align their product designs with market desires and needs. To expand the market, business actors must consider environmental impacts and sustainability. At this stage, MSMEs who want to improve their brand image and meet the demands of environmentally conscious consumers begin to implement ecodesign (Hernández Pardo et al., 2012; Jeganova, 2004; Pochat et al., 2007; Feng et al., 2022). Ecodesign helps MSMEs reduce the environmental footprint of products, optimize product life cycles, and increase the efficiency of raw material use, which can be an additional attraction for consumers who care about sustainability. MSMEs have grown and are now faced with the complexity of managing design and innovation. MSMEs in the maturity stage often face challenges in integrating design management into daily operations (Fernández-Mesa et al., 2013; Wormald & Evans, 2009; Acklin et al., 2013; Iqbal & Suzianti, 2021; Berends et al., 2011; Caneiro et al., 2013; Chen & Schiele, 2017; Grafmüller et al., 2018). Understanding design management can help MSMEs in managing the innovation process, increasing efficiency, and optimizing resource use, especially when they want to ensure that the designs produced are relevant and competitive in the market..

CONCLUSION

Cultural elements in MSME product design not only enhance visual appeal but also foster a stronger emotional bond between products and consumers. This can help MSMEs differentiate their products in a competitive market and provide a strong identity. Collaboration with external networks, such as professional designers and research institutions, is essential in supporting MSME product innovation. With a strong network, MSMEs can access new ideas, utilize external resources, and overcome internal limitations. The Kansei Engineering method is very effective in integrating cultural elements into product design in a more emotional and personal way. This method helps MSMEs to produce products that are psychologically relevant to consumers, which can ultimately increase customer loyalty. The implementation of ecodesign can provide added value in terms of environmental sustainability, which can attract consumer attention. The implementation of ecodesign not only supports sustainability efforts but can also increase product competitiveness in an increasingly environmentally conscious market. Many MSMEs have difficulty adopting culture-based designs due to a lack of design management capabilities. Increasing this capability is important to facilitate innovation and market-oriented product development. This study’s limitation lies in its limited use of literature, which only encompasses studies pertinent to the Indonesian cultural context, thereby omitting a global perspective on cultural aspects. We recommend conducting field studies or empirical experiments on MSME products from various cultural backgrounds to further understand the broader impact of this culture-based design.

Author contributions: This research article was written by several authors. Conceptualization was done by I Ketut Sida Arsa, I Made Mertanadi and Ni Made Ary Widiastini; methodology was done by Ni Made Ary Widiastini and Ni Luh Putu Agustini Karta; validation was done by I Ketut Sida Arsa, I Made Mertanadi, Ni Made Ary Widiastini and Ni Luh Putu Agustini Karta; Data curation I Ketut Sida Arsa, I Made Mertanadi; writing—original draft preparation was done by I Ketut Sida Arsa and Ni Made Ary Widiastini; writing—review and editing I Ketut Sida Arsa, I Made Mertanadi and I Made Mertanadi; Funding I Ketut Sida Arsa, I Made Mertanadi, Ni Made Ary Widiastini and Ni Luh Putu Agustini Karta.

Conflict of interest: The authors declare no conflict of interest

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