Creative Business Community Engagement Model within the Quadruple Helix: A Preliminary Report of the Circular Community in Bandung, Indonesia.
Creative economic development is closely linked to the market networking. According to Richard and Wilson (2006), there are many reasons why creativity is becoming popular in urban development strategy as the creative industry is often seen as a new and dynamic and have a wider appeal than the cultural industries that are outdated. Wilson (2012) further argues that the important issue in the context of innovative clusters is essential to involve "the person" and "the community". The main reason is that the community moves as an individual capable of connecting facts, curiosity and the economic resources of their own or through their network. To that extent, the association participated in the creative community resulted in the development of branding strategies. The goal is to make a collective effort in order to build the optimum size network. And lastly, not forgetting to insert the aim of creating a Bandung Creative City ready to compete, collaborate and elaborate at the global level.
Florida (2002) argues that there are three important points of creativity. First, creativity is very important in how a person lives and works. Second, human creativity is very diverse and multidimensional; not only limited to technological innovation and new business model. Third, Florida express creativity involves differences in ways of thinking and habits that should be pursued by individuals and communities. Creative ethos will describe the norms and values that will foster creativity and strengthen the role played. According to Florida, in choosing where to work, people belonging to the creative community prioritize their challenges and responsibilities, particularly flexibility in time and place, honor derived from the group and the involvement of the place and the community / society. They want the freedom and flexibility in pursuing side projects and other interests. Creative community has the longest working time compared with other communities because they are motivated and like their jobs.
From the definitions expressed by the above-mentioned characteristics of the creative community, there are four important aspects in the evolution of a creative community as follows:
Creative community is a community that has a basic function of the economy. The basic function will be the advocate of social activities and their lifestyles. In addition, this community is very open to the differences that exist somewhere. This community is also very hard working and loves challenge. Given these challenges, the creativity of each individual in it would be growing.
Creative community members are people who are educated and are professionals. They are workers who have high creativity in completing the work and doing a side job to their liking. They liked the flexibility in employment. Creative community members usually have the same preferences in a matter. In terms of sporting or lifestyle, members of this community like outdoor recreation as they pursue new experiences.
3. Ways of working
People who include creative community are the people who put their challenges and flexibility. Both of these highly reflected in the workings of the creative community. They chose a relatively challenging job for them and solve them with their creativity. Because this community enjoys his work uses a lot of time to work. They also spend a lot of time and money for education.
4. The relationship with the community and other communities
Creative community does not only moving to its own interests. This community has creative ideas for the development of communities and society as a whole. A community gathering place is a place in which members of this community freely out ideas and opinions openly.
Wilson (2012) argues that the main thing in the context of innovative clusters is essential to involve the person and the community. He focuses on talented people who are open-minded and able to incorporate many complex factors and different. Model Quadrant illustrates the key importance of the context of the network that connects the community with the system regardless of their background. The main reason is that the community moves as an individual capable of connecting facts vary, curiosity and the economic resources of their own or through their network. This study will explain the extent to which the introduction of "Quad-Helix" is an important step to move in understanding the development of creative industries, especially in the city of Bandung.
This study is one of the initial steps in order to map the activities and cultural resources that are beneficial for the development of the creative community in the city of Bandung. In addition, researchers will also meet with local stakeholders to obtain information and gather input for the design of the models in general. The specific objectives are to (a) identify the presence of creative activity-based community that is likely to increase public participation; (b) propose location of the program, and (c) obtain input from other stakeholders for the concept and design of the models development of creative business community involvement in the context of a quadruple helix.
II. LITERATURE REVIEW
A. The Quadruple Helix
Quadruple Helix concept is a development of Triple Helix concept by integrating civil society and integrating innovation and knowledge factor (Oscar, 2010). Quadruple Helix Innovation Theory is a collaboration of four sectors: government, business, academia and civil society that play a role in encouraging the growth of innovation.
Triple Helix is an ecosystem that can drive people to improve their creativity, ideas and skills (Etzkowitz, 2008). Triple helix can also serve as a creativity, innovation and technology development solution for the creative industry and is an element that introduces innovative procedures and practices for the growth of small and medium enterprises (Brundin et al., 2008). The University had a significant influence on the evolution of triple helix and required good collaboration in work (Razah, 2007). Creativity and innovation in organizations have an inseparable relationship that will support organizational innovation (Fernando, 2012), while creativity has no effect on innovation performance (So Young, 2010).
Previous literature studies of collaboration between academia, government, corporations and civil society have been able to encourage innovation to improve economic growth (Oscar, 2010). Research in Sweden that gender equality is necessary and women have an important role in contributing to the development of knowledge-based economy and innovation, as well as building economic growth based on social cohesion (Malin, 2012).
However, research on quadruple helix numbers is still very limited and more directed to macroeconomics, while in this research the concept is applied to creative community, in the hope that there are new findings as a contribution to the development of science.
The four actors in the quadruple helix need to work in an integrated manner, so they can play their respective roles optimally to support the growth of creativity and innovation for creative industry. The role of intellectuals is not maximized in generating innovation and creative ideas, as the results of research cannot be utilized properly by the business. The role of the government is not yet optimal in the future of business investment, as it creates a conducive business climate, and the business has not been able to create a healthy business climate in line with business ethics, while civil society as the user of goods and services or the overall economic output is not fully aware the importance of using domestic products.
A more comprehensive understanding of each party is needed to create a mutually beneficial collaboration between the four main actors, so that each will further enhance its role as a major driver of the creative industry. Research in the field of creative industry is very necessary because it is able to provide large jobs and can increase people's income. The success of the creative industry is determined by the talent, creativity and innovation capabilities of business actors so that the support of intellectuals, government, business and civil society (quadruple helix) is needed to create a strong and strong creative industry.
B. Social Capital Approach
The ability of people to work together to achieve common goals in different communities is identified as social capital. It is important for humans to develop and channel their expertise in a community, where they can design a common goal. Humans are also tested how to deal with problems that occur, and to be able to achieve a common goal, is not easy. Social capital also affects human capital, where human capital is about the skill possessed by human whereas the social capital is seen how people who have the skill can apply it in a community. Humans are also tested in the way of productivity, and how productivity is generated to gain a profit, and all of this is also not separated in the economic sector.
Social capital is the social linkage that enables a person to take action to achieve the desired goal (Putnam in Narayan and Cassidy, 2001) or "... the totality of resources, actual or virtual, that develops in individuals or groups because they have networks within a certain period or An informal relationship that requires each other and respect (the sum of resources, virtue of mutual acquisition and recognition) (Bourdieu in Narayan and Cassidy, 2001). Putnam (in Narayan and Cassidy, 2001) describes social capital as a social link that enables a person to take action to achieve the desired goal. Putnam also asserts that social capital is part of the collectivity, the elements of social life: networking, norms, and trust. McKenzie and Harpham (2006) by abstracting the notion of social capital from Putnam outline social capital as follows:
a. social networks (social networks) and personal networks that are voluntary;
b. civic engagement and participation and use of civilian networks;
c. the identity of local citizenship - a sense of belonging, solidarity and equality with members of community groups;
d. the principle of reciprocity and the value of cooperation, the sense of obligation to help others and confidence when accompanying; and
e. trust in the community.
Understanding and definition of social capital above can then be used as a basis to summarize the understanding of social capital as aspects of social networks owned by individuals and communities that allow individuals to take action to achieve the desired goals.
Social capital is a multidisciplinary concept. Various studies, both in sociology, culture, and economics, give special emphasis on the concept of social capital. This research looks into social capital and its relation to the economy and development. However, there is no single agreement that is able to describe the meaning of social capital. Each researcher has different perspectives on the notion embedded in the concept. Below are some who expressed their views on the basic concept of social capital (social capital).
Bourdieu, a French sociologist argues that the concept of society (society) can not only be seen from a purely economic point of view, but also from a broader perspective. Further, according to Bourdieu, social capital is a resource that is contained in individuals and groups of people connected in a network (network), related in relation that is both institutional and non-institutional, and mutually beneficial to each other. In simpler language, social capital is essentially a link between individuals and community groups, which has a positive impact on each side. It also adds that the link between individuals and society is not a given, but a result of individual or collective interactions, both consciously and unconsciously, resulting in short- and long-term relationships (Bourdieu, 1986).
From the perspective of Coleman (1988), social capital is a resource that gives the impact of the ability for individuals to behave and behave in life. Coleman emphasized the capacity of social capital as a force to solve various problems in society. It is also emphasized that social capital emerges along with the interactions between individuals that form the structure or pattern that connects these individuals. The structure or pattern includes the norms created by interactions, values in behavior, knowledge, and relationships between individuals.
Putnam (2001) states that social capital is a form of organized society, both in terms of networking, norms, and the value of belief which plays a role in cooperation and useful actions. In particular he argues that the breaking of bonds in family and society will have a significant impact on social life. Furthermore, the faded bond tends to be caused by the declining value of existing beliefs. In addition, social capital is formed from a small level to a wider population. The power of social capital is also very influential on economic and political health.
Fukuyama (2000) asserted that social capital is an absolute requirement for the creation of a stable democracy. He also reveals that social capital greatly affects the efficiency of the functioning of the modern economy. For Fukuyama, social capital is the norms that form the fabric of cooperation between two or more individuals. This norm can be an interaction between individuals, both in simple forms such as friendship, as well as more complex ones such as beliefs that live in society. This norm lives on the basis of honesty, commitment, and attachment to each other, so as to establish cooperation in community communities. Furthermore, Fukuyama explained that the economic function of social capital is to reduce transaction costs, or in other words to improve efficiency. This efficiency can manifest into various forms, such as in the mechanism of cooperation contracts, organizational hierarchy, bureaucratic rules, and others. It is therefore concluded that the strength of social capital is able to be a glue for healthy development for economic and political life.
While Goodwin (2003) in his study explains that long-term development requires capital raising productively, either in the form of financial capital (capital capital), natural capital (natural capital), physical capital (produced capital), human capital (human capital), and social capital (Social capital). These modalities affect the pattern of production, distribution, and consumption. Social capital itself is described as trust, mutual understanding, norms, and knowledge that can drive economic activity and coordination. Social capital also becomes a glue for other capital in accelerating economic process, so as to produce output as expected. What distinguishes social capital from other capital is that the other four are used directly in the production process, thus reducing the amount, value, and / or capacity of the capital, while social capital is not used directly in production and does not experience a decrease in benefits.
The Organization for Economic Co-operation and Development (OECD, 2001) affirms that social capital is a network that is formed with norms, values of trust, and sense of mutual understanding, which became the basis of a community or intercommunity cooperation. This network is a bridge connecting individuals within a community as well as between communities (OECD, 2001).
III. PRELIMINARY FINDINGS AND DISCUSSION
As one of the cities designated by the government for the rapid growth of creative industries, Bandung development strategy focuses on creative people, places, and ideas. One of the advantages of Bandung compared to other cities in Indonesia is the large pool of talent in design and creativity that exists which enhances Bandung potential to be a Creative City. The city of Bandung is a good example of how a creative economy can be developed through harnessing the interaction and collaboration of social networks. Creative communities flourish here and have become the principal agents in the creative fields producing various creative products and services.
One creative community had a vision to accommodate the local entrepreneurs' needs in business knowledge enrichment. From the initial grand design in April 2015, the founders initially named their community "Indonesian Local Brand Alliance" (ILBA). ILBA aims to develop cooperation among creative entrepreneurs in the thinking that they will need the supports of each other in the entrepreneurial ecosystem either directly or indirectly.
ILBA was envisioned to act as a hub that can pull various knowledge and experience from the more senior entrepreneurs who have gained national and international experience and acknowledgement. The senior entrepreneurs will be plotted as icons of national creative industries and act as ambassador to spread entrepreneurial spirit through collaboration between stakeholders by way of workshops, seminars and gatherings.
The impetus for the creation of ILBA is the ASEAN Economic Community (AEC) which is to be executed by the end of 2015. There are so many questions that occupy the creative workers related to the AEC. Has the preparation of local SMEs businesses is enough? Has the local entrepreneur's has strong he production capacity, legality, design and operation standard as important competitive advantages to face AEC?
By involving both the early and mature industry practitioners, ILBA will have an important role to support the promotion of local products. In addition, creative industries dynamic associated with the younger generation also become important aspect in ILBA development. An important element of the entrepreneurship values such as dynamic, resilient, creative and optimistic can be transferred to the younger generation. With their inventiveness and resourcefulness, the founders are aware that organization resource requirements will be expanding along with its development. Therefore, in the organizational plan, the organization engages other stakeholder to foster the idea of empowering the creative communities which includes universities, government and business practitioners. The combined cooperation was intended to create a positive synergy with each unique characteristic; universities with its research strength and source of knowledge, government as regulator and facilitator, practitioners as operator and mentor while the community as a representation of creative people and hub for cooperation.
Three main aspects which are used as important resource in organizational development plan are curriculum, networks and infrastructure. Curriculum related to the material prepared and arranged so it can become additional resource for the local entrepreneurs. Networks related to database of existing entrepreneurs acting as mentors and manifested community main value which is knowledge-sharing. Infrastructure is related to facilities such as building, website or any kind of asset that can supportive the activities.
In its development, ILBA then was renamed Circular by inputs from various community member. To finalize the ideal concept of development and execution collectively, the four founders divide organizational tasks in order to enhance good community governance. Circular came up with simple idea to gather the communities then mainly focused on local brand industry. Circular founders are:
1. Adit Yara founder of Niion Indonesia and Ghaisaniy Yara, the fashion brand that initiated urban movement for youth segmentation;
2. Satria Maulana owner of C.V. Hanimun, the food and beverages manufacturer that elaborates traditional culinary; and
3. Irfan Arsandi owner of WIT Indonesia, creative IT developer brand that initiated various startup and corporate company in Indonesia.
Circular begins to initiate and to gather local brand from various community. Not only from community aspect in Bandung creative industry but also local brand itself. Ego and competitive spirit becomes an invisible barrier to build single unity as local brand alliance in Bandung. To solve all those barriers, Circular has plans to accommodate and communicate their differences. One word to reflect Circular is 'house of collaboration' - because when local brands gathered and participated actively, it can create greater movements and economic acceleration for the city. In addition to the role as the entrepreneur community, Circular also has a role active in commercial marketing consultancy with Satria appointed as Chief Executive Officer, Adit Yara trusted as Chief Relation Officer and Irfan assigned as Chief Technology Officer.
Initially, the organization development was divided into three major phases which includes digitization, offline activation and full phase empowerment. Digitizing phase begins with the website activation as information media for SMEs to gain insight from other senior creative entrepreneurs that are documented in website in form of text, pictures or video. While the offline activation was planned through knowledge sharing events for early entrepreneurs to interact and gain additional inspiration and knowledge related to particular topic. Finally, the full phase empowerment involves facilitating business empowerment that does not stop at events that are knowledge-sharing based but also evolving towards a business incubator.
Circular then was established with main purpose to gather all creative local brands through cumulative creations to enhance Bandung local product. Circular's name came from two single words, from "circle" and "circulation". Circle means, the organization is projected to become hub for creative communities and local brands in Bandung. Circle means the community itself. It also indicates the unity of various local brand alliance and the organization task to gather all differences into one single action together.
Circulation itself means a rotation or a collection of process and activities that imply to a lot of existing community works. Circular collect all communities' works and simplify into one ultimate idea. So, from the joining words of Circle and Circulation lead to the purpose of establishment which is from Bandung the people gather and create the next legacy for Indonesian creative industry scene. Circular's motto is, "If you want to go fast, go alone. But if you want to go beyond, gather all together"
Youth segment is an important resource to grow innovative. One of Circular responsibility for youth movement is guiding and directing young creative people through the community that will engage and initiate collaboration with each other. Youth segment is an important resource to make Bandung creative movement more powerful, because youth reflect the hunger for novelty, exploration, empowerment, and recognition of their own community.
Bandung as one of the leading city for creative movement in Indonesia has proved itself by the latest municipal government with its recent mayor Mr. Ridwan Kamil. He has led the city to create a myriad number of creative movements, so that Bandung achieved various awards. Creative movement begins from the core of city which is human asset. They work individually until at one point they gather to establish a creative community. Moreover, from the 15 creative industry category, Bandung fulfills all sectors with its community movement. Until 2017, Mr. Ridwan Kamil has facilitate various creative industry movement in a single building called the Bandung Creative Hub.
IV. CONCLUSION AND RECOMMENDATION
The preliminary findings show that a quadruple-helix collaboration model is important to develop creative industries. Quadruple-helix consists of collaboration between government, academicians, business, and civil societies/communities. Social capital is an important resource for an organization. If human capital is about the skill possessed by human whereas social capital is how people who have the skill can apply it in a community.
Creative Communities has a large role in creating the creative economy. Creative community not only advocates social activities and their lifestyles. This community has creative ideas for the development of communities and society as a whole.
The study results indicate that Bandung as a creative city has large potential from social capital and communities. Even though it has large potential to grow, creative communities still has challenges to collaborate because of individual competitive spirit. Circular's role is to answer that challenge by facilitating collaboration, competition, and other creative activities for Bandung's local businesses. The study limitation is only focused on Bandung's creative communities and from one organization. This research may be useful for future studies as a benchmark in similar organizations and/or creative cities.
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Sonny Rustiadi (a), Bayuningrat M. Kusumahdinata (b), Aditya Rahman (c), Irfan Arsandid
(a) School of Business and Management (SBM), Bandung Institute of Technology (ITB), Jl.Ganesha 10 Bandung, Indonesia
(b) School of Business and Management (SBM), Bandung Institute of Technology email@example.com
(c) School of Business and Management (SBM), Bandung Institute of Technology firstname.lastname@example.org
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|Author:||Rustiadi, Sonny; Kusumahdinata, Bayuningrat M.; Rahman, Aditya; Arsandid, Irfan|
|Publication:||International Journal of Business|
|Date:||Jan 1, 2018|
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