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Strategies in Enhancing Consumer Interest in Baduy Weaving Crafts Through Business Model Canvas to Improve the Economic Resilience of Baduy Indigenous Community
- Mirajiani
- Aris Supriyo Wibowo
- Ari Tresna Sumantri
- Kartina A.M
- Intan Nurhidayati
- 1977-1990
- Dec 4, 2024
- Business Management
Strategies in Enhancing Consumer Interest in Baduy Weaving Crafts Through Business Model Canvas to Improve the Economic Resilience of Baduy Indigenous Community
Mirajiani1*, Aris Supriyo Wibowo2, Ari Tresna Sumantri3, Kartina A.M4, Intan Nurhidayati5
1,2,3,5Department of Agribusiness, Faculty of Agriculture, Sultan Ageng Tirtayasa University, Indonesia
4Department of Agroecotecnology, Faculty of Agriculture, Sultan Ageng Tirtayasa University, Indonesia
*Corresponding Author
DOI: https://dx.doi.org/10.47772/IJRISS.2024.8110156
Received: 31 October 2024; Accepted: 06 November 2024; Published: 04 December 2024
ABSTRACT
The Baduy weaving crafts are local wisdom-based handcrafts produced by the Baduy indigenous community. They make and sell woven products such as headbands, scarves, cloth, and woven clothes. Improving the economic resilience of the Baduy indigenous community requires an increase in the selling power of Baduy woven craft products. Therefore, it is necessary to carry out an evaluation of factors influencing consumer interest and better future development by implementing the marketing strategy of Business Model Canvas (BMC). The study identifies weaving quality, price, promotion, access to market, and product advantages (local wisdom) that partially and simultaneously affect consumer interest in purchasing products from Baduy weaving crafts. Additionally, it aims to comprehend the business model description of the Baduy weaving crafts and draft alternative strategies using BMC in the Baduy weaving crafts. The research was conducted in May 2024 in Baduy Weaving Crafts in Kanekes Village. The research method includes mix methods of qualitative and quantitative. In the quantitative research, samples taken are 70 respondents and it uses an accidental sampling technique and questionnaire. The data analysis employs multiple linear regression analysis, t-test, and F-test. The quantitative research results indicate that variables of service quality, promotion, and product advantages have a partial effect on consumer interest, whereas price and access to the market do not have a partial effect on consumer interest. All independent variables, however, have a simultaneous effect on consumer interest. The qualitative research suggests that the Baduy Weaving Crafts have implemented nine elements of the BMC. BMC alternative design has a contribution to understanding business aspects and illustrating solutions to current problems.
Keywords: Baduy Weaving Crafts, Consumer Interest, Business Model Canvas
INTRODUCTION
As an archipelago state, Indonesia is rich in natural resources including bio and non-bio resources. Natural resources provide natural tourism, cultural tourism, and religious tourism that can maintain the local community’s economy. The potential of natural resources, geographic conditions, social structure, and institutional image are the roots of the creation of an economic system. People will seek an order that is in line with the structure, conditions, and potential of their region to achieve economic goals consisting of four components, namely an order regarding ownership, economic actors, implementation, and the order to be achieved (Ismail in Santosa and Yustika, 2014). An economic system is the behavior of society itself in utilizing scarce resources to gain various commodities so that they can be delivered to individuals and groups to fulfill the desires and needs of life in market dynamics that are full of uncertainty.
On the other side, people in rural areas still face obstacles, such as limited capital for business actors in building the economy (Ashari, 2006). Hence, the effectiveness of measures taken by regional institutions to fulfill society’s needs, optimation of resource management through local community involvement, and improvement of institutional competence through better human resource quality are factors affecting institutional effectiveness (Anantanyu dan Sumardjo, 2009). It is necessary to insert local wisdom values in development amidst cultural pluralism that has different and unique values in line with customs and is related to the fulfillment of basic needs, and independent and environmentally aware development with oriented development concept becoming imperative (Hettne, 2001).
In economic resilience, people should find the best way of resource allocation to meet the needs for safety from threats (Yusgiantoro, 2014). Researchers view the Baduy indigenous community as an institution. North (1991) defined an institution as a rule that regulates and forms political, social, and economic interactions. Humans create institutions that consist of formal and informal rules, and rule enforcement processes which can determine the direction of making better arrangements and reduce uncertainty in the exchange process.
The Baduy indigenous community is a group of indigenous Sundanese people who live in Kanekes Village, Leuwidamar, Lebak Regency, Banten Province. The community is an ancestral heritage that needs to be preserved. The Baduy tribe consists of two primary groups, namely Baduy Luar and Baduy Dalam. For centuries, the Baduy indigenous community has succeeded in isolating itself and protecting their areas from the impact of outside cultures (Zaterdag, 1987) and rejecting modernity (Economist, 2022). The Baduy Dalam people isolate themselves from the outside world. Consistent with Wicaksono et al. (2022), the Baduy Dalam people possess prohibitions to use mobile phones and modern technology in their lives given to regulations that are enforced more strictly than in Baduy Luar. The Baduy Luar have begun to follow the developments of the times but still adhere to the traditions that have been inherited. Three characteristics of the Baduy indigenous community’s life that are applied every day include a simple lifestyle, friendship with nature, and a spirit of independence (Suparmini et al., 2013).
The Baduy indigenous community has various specific handicrafts that are well-known among tourists and produced by the people. One of the crafts is Baduy Weaving crafts that have a diverse type, such as tenun aros, adu mancung, poleng hideung, and boeh or bosan.
The economy currently experiences rapid changes and the foundation of the modern economy has shifted from manufacturing to service and industrial areas (Yuliana, 2021). The service field can be seen in the daily life of the Baduy Indigenous community in managing the existing natural resources, especially in producing Baduy weaving crafts and maintaining local wisdom by utilizing human resources, which is women who have been taught the art of weaving since they were teenagers. In maintaining economic resilience, the Baduy woven cloth has a unique value where the production process from planting cotton, harvesting, spinning, weaving, and dyeing follows its distinctive motifs (Wiryanto, 2022).
The Baduy indigenous community utilizes their local wisdom based on their thoughts about the universe, simplicity, and openness to the surrounding areas, which are the primary teachings of the Baduy Tribe. They prioritize teachings about protecting and preserving nature that enable them to live harmoniously with nature. Local wisdom can support the people in solving their problems by utilizing and developing the potential that exists in society so that the community can develop, the economy can increase, people will prosper, and poverty will reduce (Sugiartana & Yasa, 2021).
Based on the aforementioned, the Baduy Indigenous Community has great potential in the cultural tourism field and crafts. With the potential, the introduction is essential to protect the Baduy Tribe preservation and their local wisdom product. The introduction can be manifested through objects, such as fashion accessories, and through innovation to the Baduy woven cloth that can create higher selling power. The development of Baduy weaving can provide innovation, especially in fashion accessories (Fajarwati, 2022).
Given the production of Baduy weaving crafts, the Baduy Indigenous Community is considered as part of MSMEs. MSMEs need to create a planning model to promote strategic policies that can empower them and assist in accelerating economic improvement (Rahman, 2020). Therefore, strategic policies on strengthening the weaving craft business in the Baduy Indigenous Community need to be encouraged by implementing an effective business planning model. They can apply one of the business model designs in the craft business, namely Business Model Canvas (BMC). The application of BMC can direct the Baduy weaving craft entrepreneurs in illustrating their business so it can grow, develop, and be sustainable with competitive advantages.
Additionally, limited insight into marketing management creates a lack of ability among the people to sell their products. Human resource quality is the primary factor of MSME development in the craft industry (Salgado, 2014). This suggests that MSMEs in the weaving craft field in Baduy need to enhance their competitiveness including responding to global market openness and utilizing technology advancement in marketing and selling. Moreover, efforts are needed in performance improvement of the Baduy weaving crafts with orientation to customer-based innovation.
Achieving higher selling power for the Baduy woven products will require an evaluation of factors affecting consumer interest, determine business model design for the Baduy weaving crafts, and an alternative plan using the Business Model Canvas (BMC) approach. Therefore, the current study aims to determine factors affecting consumer interest and create a strategy to improve consumer interest in the Baduy weaving crafts comprehensively. In the research, factors influencing consumer interest in the Baduy weaving crafts include weaving quality (X1), price (X2), promotion (X3), access to market (X4), and product advantages (local wisdom) (X5).
The main meaning of strategy is an effort to take steps to achieve better conditions. A business development strategy can be applied by developing accurate communication between the demand and supply factors of a product or service. Appropriate communication can be created through four perspectives in the management of building relationships with customers, such as perspective from customer knowledge, customer interaction, customer satisfaction, and customer evaluation (Yim, 2004). The use of the four perspectives aims to gain information from respondents on question items to understand the need of Baduy woven products in achieving local wisdom-based economic resilience.
The likelihood of consumers purchasing a brand or switching from one brand to another is the definition of consumer interest. Purchasing motivation is higher when the benefits received is greater than the sacrifices to obtain them (Keller, 1998).
Kristiani (2015) states that Business Model Canvas (BMC) is a tool used to analyze a business model. It was found by Osterwalder and Pigneur in 2010. BMC is a tool to analyze business to make it easier to understand and practice. It is also a well-known and novel analysis tool that is suitable for analyzing a business due to its more complete components than other analysis tools. It consists of nine component blocks, namely Customer Segments, Value Propositions, Channels, Customer Relationships, Revenue Streams, Key Resources, Key Activities, Key Partnerships, and Cost Structure.
Canvas can be defined as a means to assist its users in analyzing smaller elements than other business models and it presents a visual map to gain strategic planning notes in detail (Comin, et al., 2020). The Business Model Canvas indicates one page of an illustration of what the business does to achieve its goals.
METHOD
The research employed a mixed-method approach combining quantitative research using a survey method and qualitative research using an in-depth interview. The research used both primary and secondary data. The research location was in Kanekes Village, Banten which was selected purposively. The results will be described comprehensively. Descriptive research aims to “illustrate” using words or numbers and display a profile, detail of types, or explain something to answer questions such as who, why, and how. Descriptive research depicts conditions, relations, or certain social areas (Neuman, 2014).
Research Instrument
The research instruments were data collection tools or data measurment tools used, namely questionnaires and interview guidelines containing a list of questions related to the research theme and aimed at pre-determined respondents and resource person. Other tools used included stationary, mobile phones, and laptops.
Qualitative Research Design
The population in the quantitative research was unlimited, including all tourists visiting the Kanekes Village, which is known as a tourist village located in the Baduy Luar area, especially in the Baduy Weaving Crafts. This was due to uncertainty in the number of tourists visiting the Baduy Weaving Craft house.
According to Roscoe, in the book entitled Research Methods for Business (1982) quoted by Sugiyono (2016), Roscoe’s formula has requirements on the size of the sample for the research, namely:
- The appropriate sample size in the study was between 30 and
- If the sample is divided into categories (for example, male and female, and others), then the number of sample members in each category is at least
- If the research will carry out a multivariate analysis, then the number of sample members must be at least 10 times of the number of variables to be studied. In this research, the research variables were 6 (5 independent variables and 1 dependent variabel), then total sample members were 10×6 = 60.
- For simple experimental research, if a strict experimental control is employed, the number of sample members is between 10 and 20 each.
Gay and Diehl (1992) argued that a sample should be as large as possible. The larger the sample taken, the more representative they will be and the results can be generalized. The number of samples used in the quantitative research after the field visit was 70 respondents. To increase variation in the number of data and to prevent errors in data entry, the sample was added to more than 60 respondents according to respondent criteria.
The respondent criteria included visitors of the Baduy Weaving Crafts both male and female, aged 17 – 60 years old, and minimum has visited the object one time. The research technique used was non-probability sampling or accidental sampling technique.
Data Processing Method and Analysis
The research employed instrument trials to ensure the measurement tool used is valid and reliable. Moreover, the classical assumption tests were used to obtain a good regression model to avoid data errors. The test included multicollinearity, heteroscedasticity, and normality tests. The multiple linear regression analysis aimed to determine the relationship between two or more independent variables (X1, X2…..Xn) and a dependent variable (Y). The hypothesis testing employed partial and simultaneous tests. Lastly, the determination coefficient test was used to measure to what extent a model’s ability to depict the variation in the dependent variables.
Qualitative Research Design
The research utilized a purposive sampling method to determine respondents. The number of samples was 8 entrepreneurs of Baduy Weaving Craft manager (the respondents were producers or weaver craftsmen as well as business actors and sellers).
The data processing method in the qualitative research was qualitative descriptive analysis by analyzing the business model. In-depth interviews were conducted with resource persons knowledgeable about the business model implemented in the Baduy Weaving Crafts. Stages in the analysis begin with reducing data or summarizing and selecting important points according to the research needs. Data were then presented in the business model map using the Business Model Canvas approach. The next stage was designing alternative recommendations consisting of nine blocks of main elements in the business model containing strategies to enhance consumer interest by considering the influencing factors to improve the economic resilience of the Baduy Indigenous Community.
RESULTS AND DISCUSSION
Quantitative Research
The instrument tests consisted of validity and reliability test. The validity tests obtained results that all question items used in the research were valid as indicated by a positive correlation bigger than the r table of 0.388 for each question item. The test was carried out on 30 respondents with df=30-k=24, and α=5%; therefore, the r-table obtained was 0.388 (Ghozali, 2016). The results of the validity test using SPSS 23 program can be seen from the value of “item-total statistic” in the column of Corrected-Item Total Correlation on the research instrument. The values of item validity of the variables of Weaving Quality (X1), Price (X2), Promotion (X3), Access to Market (X4), Product Advantages (Local Wisdom) (X5), and Consumer Interest (Y) are presented in Table 1.
Table 1. Results of the Validity Test
Variable | Indicator | r calculated | r table | Description |
Weaving Quality (X1) | X1.1 | 0,867 | 0,388 | Valid |
X1.2 | 0,927 | 0,388 | Valid | |
X1.3 | 0,678 | 0,388 | Valid | |
X1.4 | 0,926 | 0,388 | Valid | |
Price (X2) | X2.1 | 0,841 | 0,388 | Valid |
X2.2 | 0,818 | 0,388 | Valid | |
X2.3 | 0,917 | 0,388 | Valid | |
X2.4 | 0,903 | 0,388 | Valid | |
Promotion (X3) | X3.1 | 0,974 | 0,388 | Valid |
X3.2 | 0,956 | 0,388 | Valid | |
X3.3 | 0,936 | 0,388 | Valid | |
Access to Market (X4) | X4.1 | 0,764 | 0,388 | Valid |
X4.2 | 0,804 | 0,388 | Valid | |
X4.3 | 0,733 | 0,388 | Valid | |
X4.4 | 0,855 | 0,388 | Valid | |
Product Advantages (Local Wisdom) (X5) | X5.1 | 0,821 | 0,388 | Valid |
X5.2 | 0,787 | 0,388 | Valid | |
X5.3 | 0,804 | 0,388 | Valid | |
X5.4 | 0,808 | 0,388 | Valid | |
X5.5 | 0,732 | 0,388 | Valid | |
X5.6 | 0,746 | 0,388 | Valid | |
Consumer Interest (Y) | Y.1 | 0,68 | 0,388 | Valid |
Y.2 | 0,748 | 0,388 | Valid | |
Y.3 | 0,771 | 0,388 | Valid | |
Y.4 | 0,661 | 0,388 | Valid | |
Y.5 | 0,68 | 0,388 | Valid | |
Y.6 | 0,744 | 0,388 | Valid | |
Source: Research Result, processed data 2024 |
A reliable attribute has the value of Cronbach’s Alpha that is greater than 0.60 (Sugiyono, 2013). The reliability value in the current research had Cronbach’s Alpha greater than 0.60. Therefore, all indicators, namely Weaving Quality (X1), Price (X2), Promotion (X3), Access to Market (X4), Product Advantages (Local Wisdom) (X5), and Consumer Interest (Y) were reliable as indicated in Table 2.
Table 2. Results of the Reliability Test
No. | Research Variable | Cronbach’s Alpha | Criteria |
1 | Weaving Quality (X1) | 0.871 | Reliable |
2 | Price (X2) | 0.892 | Reliable |
3 | Promotion (X3) | 0.951 | Reliable |
4 | Access to Market (X4) | 0.797 | Reliable |
5 | Product Advantages (Local Wisdom) (X5) | 0.873 | Reliable |
6 | Consumer Interest (Y) | 0.803 | Reliable |
Source: Research results, processed data 2024 |
The classical assumption tests consisted of three tests. First was the normality test carried out using the Kolmogorov-Smirnov method and generated an asymp. Sig (2-tailed) value of 0.171. Since the significance value was greater than 0.05, the distribution was normal. The second test employed the Glejser method to test heteroscedasticity. The test resulted in a significance value of the five independent variables to be greater than 0.05. Therefore, there was no heteroscedasticity interference thus the regression model was suitable for predicting consumer interest. Table 3 displays all the results in detail.
Table 3. Results of the Heteroscedasticity Test using Glejser Test
Model | t | Sig. | ||
1 | (Constant) | 0,468 | 0,642 | |
Weaving Quality (X1) | 2,207 | 0,031 | ||
Price (X2) | -2,200 | 0,031 | ||
Promotion (X3) | -0,495 | 0,622 | ||
Access to Market(X4) | -0,033 | 0,974 | ||
Product Advantages (Local Wisdom) (X5) | 0,873 | 0,386 | ||
Dependent Variable: Abs_RES | ||||
Source: Research results, processed data 2024 |
The results of the multicollinearity test on the output coefficients of VIF value for all independent variables, namely Weaving Quality (X1), Price (X2), Promotion (X3), Access to Market (X4), Product Advantages (Local Wisdom) (X5), and Consumer Interest (Y) were below 10 and the tolerance value was above 0.1. The results suggest that there was no multicollinearity. The results of the multicollinearity test can be seen in Table 4.
Table 4. Results of the Multicollinearity Test
Model | Colinearity Statistics | ||
Tolerance | VIF | ||
1 | Weaving Quality (X1) | 0,292 | 3,430 |
Price (X2) | 0,278 | 3,594 | |
Promotion (X3) | 0,405 | 2,472 | |
Access to Market (X4) | 0,422 | 2,367 | |
Product Advantages (Local Wisdom) (X5) | 0,291 | 3,433 | |
a. Dependent Variable: Interest to re-visit | |||
Source: Research results, processed data 2024 |
Next, the multiple linear regression analysis was used to identify the effect of variables of Weaving Quality (X1), Price (X2), Promotion (X3), Access to Market (X4), and Product Advantages (Local Wisdom) (X5) on Consumer Interest (Y) in the Baduy Weaving Craft objects. The results of the multiple linear regression analysis using SPSS Version 23 can be seen in Table 5.
Table 5. Results of Multiple Linear Regression Analysis
Model | Unstandardized Coefficients | Standardized Coefficients | ||
B | Std. Error | Beta | ||
1 | (Constant) | 5,952 | 1,095 | |
Weaving Quality (X1) | -0,454 | 0,107 | -0,360 | |
Price (X2) | 0,046 | 0,103 | 0,039 | |
Promotion (X3) | 0,327 | 0,099 | 0,238 | |
Access to Market (X4) | 0,020 | 0,077 | -0,018 | |
Product Advantages (Local Wisdom) (X5) | 0,896 | 0,075 | 1,020 | |
a. Dependent Variable: Y | ||||
Source: Research results, processed data 2024 |
Based on the results of the multiple linear regression analysis, the regression equation for the research is:
Y = 5,952 – 0,360 X1 – 0,039 X2+ 0,238 X3 – 0,018 X4 + 1,020 X5 + e
The above equation indicates that if there were no independent variables, the consumer interest (Y) will be affected by a constant of 21.384. If X1 which has a negative value experiences a decrease of 0.360, then Y will increase by 0.360 (36%). Likewise, for the X2, and X4. Whereas, If X3 which has a positive value increases by 0.238, then Y will increase by 0.238 (23.8%), as well as X5.
The researcher proposed several hypotheses as follows.
H0: bl = 0 Weaving quality, price, promotion, access to market, and product advantages do not partially affect consumer interest in the Baduy Weaving Crafts.
H₁: b1 ≠ 0 Weaving quality, price, promotion, access to market, and product advantages partially affect consumer interest in the Baduy Weaving Crafts
The hypothesis testing employed a t-test and an F-test. The tests resulted in a significance value of the X1, X3, X5 variables < 0.05 and X2, X4 variables > 0.05. The results indicate that the variables of weaving quality, promotion, and product advantages partially affected consumer interest in the Baduy Weaving Crafts. Whereas, variables of price and access to market did not partially affect consumer interest in the Baduy Weaving Crafts
The F-test generated F-calculated that was greater than F-table (81,966>2,36), thus H0 was rejected and H1 was accepted. The result suggests that Weaving Quality (X1), Price (X2), Promotion (X3), Access to Market (X4), and Product Advantages (Local Wisdom) (X5) simultaneously affected consumer interest in Baduy Weaving Crafts. Detailed results can be seen in Table 6.
Table 6. Results of Hypothesis Testing
Model | t | Sig. | F calculate | F table | |
1 | (Constant) | 5,437 | 0,000 | ||
Weaving Quality (X1) | -4,233 | 0,000 | |||
Price (X2) | 0,450 | 0,654 | 81,966 | 2,36 | |
Promotion (X3) | 3,289 | 0,002 | |||
Access to Market (X4) | -0,254 | 0,800 | |||
Product Advantages (Local Wisdom) (X5) | 11,988 | 0,000 | |||
a. Dependent Variable: Y
Source: Research results, processed data 2024 |
Determining which independent variable that has the most effect on the Variable Y can be done by comparing the regression coefficient (Beta) between one variable and another. It can be seen that Variable Y was mostly affected by the Product Advantages (Local Wisdom) (X5) variable compared to other variables based on Table 7.
Table 7. Summary of Results of The Multiple Linear Analysis
Level | Variable | Beta Coefficient | Effect |
1 | Product Advantages (Local Wisdom) (X5) | 1,020 | Significant |
2 | Promotion (X3) | 0,238 | Significant |
3 | Price (X2) | 0,039 | Significant |
4 | Access to Market (X4) | -0,018 | Not Significant |
5 | Weaving Quality (X1) | -0,360 | Not Significant |
Source: Research Results, processed data 2024 |
The coefficient determination or R2 can measure the ability of independent variables to explain the dependent variable. The results of the R2 test in the research obtained a value of 0.865. This indicates that the percentage of consumer interest variable can be explained by the independent variables was 0.865 (86.5%) and the remaining 13.5% was explained by other variables excluded in the research.
Qualitative Research
The interviews were conducted with internal parties of the Baduy Weaving Crafts to explore in deep the current business model applied by the business. A business model is a series of interrelated and interdependent things about how to manage a “business” both towards consumers, about suppliers, and in establishing partnership (Zolnowski, 2014). The next step after the interviews was the identification of strategies and examination of the nine primary elements followed by the formation of the Business Model Canvas (BMC) framework of the Baduy Weaving Crafts. These steps will facilitate the entry of a comprehensive illustration of strategies, structures, and business operations currently applied by the Baduy Weaving Crafts. Following are the elements of the BMC framework of the Baduy Weaving Craft:
- Customer Segments, customers are individuals or communities who buy and utilize products offered by a business entity. The Baduy Weaving Crafts have a broad customer segment that becomes the target, namely, all levels of society, such as in terms of ages from children to adults, geographically from the surrounding areas or outside the area, and from low economic strata to high.
- Value Propositions or an added value indicated by an organization or business entity to its customers that could attract consumer interest and fulfill their expectations and satisfaction. Based on the interview results with respondents as the managers of the Baduy Weaving Crafts, there are various values offered to the customers, namely good quality (strong, comfortable, cool, etc), a variety of woven motifs, and shapes (headbands, scarves, cloth, and clothes), thus the offering prices ranging from Rp 30.000 to Rp 3.000.000. Moreover, the products carry typical Baduy woven products based on local wisdom and homemade products by the Baduy women.
- Customer relationship is a way the Baduy Weaving Crafts to maintain good relationships with their consumers, namely by direct communication (when customers visit the shops) and indirect communication (through social media: Instagram and WhatsApp) by posting content on the Baduy Weaving Crafts and replying to all messages.
- Channels, The Baduy Weaving Crafts use communication channels to deliver values to their consumers, such as interaction through digital channels and direct channels.
- Revenue streams are revenue streams gained by the Baduy Weaving Crafts through their business operations, which are the proceeds from the sale of woven crafts in the form of headbands, scarves, cloth, and clothes.
- Key Resources are the primary resources needed by a company to keep its business running. Resources in the Baduy Weaving include physical resources, financial resources, and human resources. The physical resources include houses used for production and sales, thread, storage warehouses, and weaving tools that support weaving activities. The financial resources are obtained from the internal of the company. Initial capital comes from personal funds allocated to start a business and profit gained from sales is used to add capital to expand and maintain the continuity of business operations. The human resources are the Baduy people, particularly females, who run and develop the business. In the Baduy customs, women must be able to weave and only women who are allowed to weave. Therefore, business actors in the Baduy Weaving Crafts are women.
- Key activities are the main activities carried out by the Baduy Weaving Crafts to maintain the business well. The activities include production or weaving activities, loom maintenance, and woven craft sales.
- Key Partnership, The Baduy Weaving Crafts builds partnerships with resellers in their business activities. The partnership can help them to develop and advance the business for local sales in their store or export. In the partnership agreement to export Baduy woven products, the Baduy Weaving Crafts are obliged to send three sacks of woven crafts to be exported by the partner reseller. The payment of the sales proceeds will be wired every week.
- Cost Structure, which is expenses incurred by Baduy Weaving Crafts in running their company’s main activities. The cost consists of fixed and variable costs. The fixed costs include house or store tax, thread, and salary for full-time employees. The variable costs comprise repair or maintenance costs for looms.
Based on the analysis and identification of the Baduy Weaving Crafts’ business model, it is necessary to describe them in the form of BMC. BMC is a tool that is recognized as being able to reflect business model structure systematically (Barquet dkk., 2011). The mapping of the Baduy Weaving Crafts’ business model can be seen in Figure 1.
Figure 1. BMC of The Baduy Weaving Crafts
The mapping of identification results shows activities carried out by the Baduy Weaving Crafts in the implementation of BMC into their business. Recommendations can be implemented and need to be reviewed regarding the performance of several interrelated elements for the continuity of Baduy Weaving Crafts so that an alternative design of a business model can be formed.
The BMC alternative design of the Baduy Weaving Crafts recommends the expansion of customer segments that lead to digitalization, such as the use of social media and e-commerce, the addition of value in the value proposition by maximizing the use of digital media, and the expansion of channels to various social media platforms, electronic payments, websites, and e-commerce. Other recommendations include ways to establish relationships with customers in the customer relationships, to create quality content, and to streamline digital interaction. By maximizing digital media, the incoming flow in revenue streams is increased from Adsense. In the key resources, there are relationships with other elements, such as financial resources with an addition in the cost structure and revenue streams. Regarding the physical resources, recommendations given are to increase the number of quality and strong weaving tools and look for other alternatives for thread originating from Bandung that can be produced independently. In the human resources aspect, the recommendation is to organize training on weaving with innovation in motifs.
In the key activities, additional recommendations are adding income and maximizing marketing including sales through digital media and finding or increasing the number of resellers. In the key partnerships, the recommendation is to establish partnerships with the government, distributors or resellers, and thread suppliers. Finally, for the cost structure, additional expenditure is required for internet access and advertising costs as recommended and referring to the development related to various element sectors.
Based on the aforementioned, the use of digital media is supported by (Raharja & Natari, 2021) stating that selling products to consumers online is the most tangible form of digital marketing. Therefore, the business actors in the Baduy Weaving Crafts can expand their network by starting to use online sales through e-commerce so that they can operate their business by reaching more consumers and expanding their market share. In the industrial revolution era 4.0, it is necessary for business actors to penetrate into e-commerce since consumer shopping patterns are shifting so that they can survive and have the potential to achieve new things with a larger market share (Tachril, 2020).
In the digitalization era, micro, small, and medium entrepreneurs can use online digital media to reach markets from various areas, regional and global (Kardini et al., 2023). The use of the Internet and social media can create opportunities for business actors to provide direct information to the world (Intahchomphoo, 2018), regarding their business. Detail of the BMC alternative design of the Baduy Weaving Crafts can be seen in Figure 2.
Figure 2. BMC Alternative Design of the Baduy Weaving Crafts
The existing recommendations become more relevant since the digital maximization aspects are the key factor in current business development. Therefore, there are opportunities to apply this innovation to improve understanding of digital factors that can influence and change business strategy fundamentally.
CONCLUSION AND SUGGESTION
Conclusion
Based on the research results and discussion, conclusion can be drawn as follows.
- The results of the t-test indicate that Weaving Quality (X₁), Promotion (X3), Product Advantages (Local Wisdom) (X5) have a significance value of less than 0.05; therefore, these variables have a significant partial effect on Consumer Interest (Y). Whereas, Price (X2) and Access to Market (X4) have a significant value of greater than 0.05; therefore, these variables have no significant partial effect on Consumer Interest (Y).
- The F-calculation value is 81.966, which is bigger than the F-table of 2.36. The results suggest that variables of Weaving Quality (X1), Price (X2), Promotion (X3), Access to Market (X4), and Product Advantages (Local Wisdom) (X5) have a significant simultaneous effect on Consumer Interest (Y).
- Based on the test results, the most dominant variable in the results of multiple linear regression estimation that can be seen from the regression coefficient value (Beta) is the Product Advantages (Local Wisdom) Variable (X5) of 1.
- The Baduy Weaving Crafts have illustrated a business model and rationale for creating and providing value to businesses. Therefore, the Baduy Weaving Crafts still require development to encourage progress. The current strategies are not formed into the BMC but are the results of the business evaluation process. Therefore, it needs to be mapped into the BMC business model of Baduy Weaving Crafts. Then, an alternative strategy is designed for the Baduy Weaving Crafts into a BMC canvas, and additional recommendations are included in the business strategies for better business development in terms of marketing and sales, especially by maximizing digital media so that the Baduy Weaving Crafts can expand their market.
Suggestion
Based on the testing results and discussion, following are suggestions as a consideration for the company and future research.
1. For the Baduy Weaving Crafts Manager
- Based on the recapitulation results of the weaving quality variable, the Baduy Weaving Crafts manager must maintain their weaving quality high and in accordance with consumer expectations, such as soft, cool, and comfortable materials with typical Baduy motifs, neutral colors, and the use of good quality dyes so they don’t fade easily. They also need to have innovation in motifs but keep the characteristics of the Baduy Tribe and need to add beautiful variations or mixes of colors.
- The recapitulation results of the price variable suggest that consumers perceive the price currently offered as affordable in accordance with the benefit received. Therefore, the Baduy Weaving Crafts managers need to enhance consumer interest by intensifying the selling price of woven fabric with a discount according to specific terms and conditions.
- The recapitulation results of the promotion variable recommend the Baduy Weaving Crafts managers to conduct regular promotion by uploading interesting contents on social media, e-commerce, and websites and using advertising features so that their promotion could reach numerous customer targets. Moreover, they need to establish partnerships with various parties to increase consumer interest in the Baduy Weaving Crafts.
- The recapitulation results of the access to market variable suggest Baduy Weaving Crafts aggressively carry out sales both online and offline so that products are sold in a wider market.
- The recapitulation results of the product advantages (local wisdom) variable recommend the Baduy Weaving Crafts managers to develop or maintain values of their product advantages as an added value to enhance consumer interest.
- The existing BMC strategy should be updated continuously based on business situations and conditions of the Baduy Weaving Crafts. The Baduy Weaving Crafts can consider alternative strategies proposed by the researcher so that their business can develop more.
2. For Future Researcher
The current research results indicate that consumer interest can be explained by weaving quality, price, promotion, access to market, and product advantages (local wisdom) of 86.5%. Therefore, future researcher who wants to study or continue the current study can develop the research by searching for other factors, such as customer experience, brand image, word of mouth, and others that can affect consumer interest in the product of the Baduy Weaving Crafts.
ACKNOWLEDGEMENT
We would like to thank to University of Sultan Ageng Tirtayasa for its support in this research.
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