Abstract

The purpose of this study is to examine the enhancement of the competitiveness of creative industries based on information technology and good corporate governance in Central Java. In this research, it is expected to find the right selection of information technology and the application of good corporate governance to improve the competitiveness of the creative industries in the handicraft sub-sector in Central Java. The sampling technique is based on a purposive sampling method and get 112 respondents as samples that meet all the criteria. The analytical tool used to test the hypotheses in this study uses the Structural Equation Model. The results of this study indicate that it is necessary to utilize the development of information technology and the application of good corporate governance to increase the company's market competitiveness which will impact on improving company performance. In addition, transparency and accountability are also needed to build stakeholder's trust.

Highlights

  • The shift from the agricultural era to the industrialization era, followed by the digital era accompanied by many new discoveries in the field of information technology and economic globalization gave rise to the creative industries era (Darsono, 2005)

  • The results show that the tcount value is greater than the t-table value (1.96), which means that the hypothesis which states that information technology has an effect on competitive advantage is accepted at the 5% significance level

  • These results indicate that in order to build market competitiveness, companies need to take advantage of developments in information technology (Table 1)

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Summary

Introduction

The shift from the agricultural era to the industrialization era, followed by the digital era accompanied by many new discoveries in the field of information technology and economic globalization gave rise to the creative industries era (Darsono, 2005). The role of Information Communication Technology (ICT) can be used as a business tool to reduce costs, create strong customer relationships, create innovation and facilitate niche markets (Kutlu & Özturan, 2009; Apulu & Latham, 2011; Wu et al, 2011). The creative industry in Indonesia has a big role in contributing to state revenue, it is proven that it contributes to gross domestic income by an average of 7.8% per year or equivalent to 140 trillion rupiahs and should not be underestimated because it can absorb a workforce of around 7.4 million people. From 2004 to 2010 the export of creative industries has increased with the highest average annual growth of 12% and recorded an export value of 131 trillion rupiahs in 2010, and it is expected that in 2025 the creative industry will contribute 11% of GDP and 12-13% for exports (http://citraindonesia.com/kemendag-genjot-industri-kreatif)

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