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.
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