Green IT empowerment, social capital, creativity and innovation: a case study of creative city, Bantul, Yogyakarta, Indonesia

Jou nal o Indus ial Enginee ing and Managemen JIEM, 2015 – 8(3): 719-737 – Online ISSN: 2013-0953 – P in ISSN: 2013-8423 h p://dx.doi.o g/10.3926/jiem.1341 G een IT Empowe men , Social Capi al, C ea i i y and Inno a ion: A Case S udy o C ea i e Ci y, Ban ul, Yogyaka a, Indonesia Mua i Uni e si as Pembangunan Nasional "Ve e an" Yogyaka a (Indonesia) [email p o ec ed] Recei ed: Decembe 2014 Accep ed: Ap il 2015 Abs ac : Pu pose: This s udy aims a analyzing he ole o empowe men o G een In o ma ion Technology (IT) in Small Medium En ep ises (SMEs) and social capi al o he c ea i i y and inno a ion o c ea i e SMEs in Ban ul, Yogyaka a, Indonesia. Design/me hodology/app oach: A s a is ical echnique used in he p esen s udy was Pa ial Leas Squa e. The p ima y da a o he p esen esea ch we e ob ained om ques ionnai es and in e iews wi h some esponden s. While seconda y da a we e gained h ough he eco ds and publica ions o ela ed ins ances. Findings: The esea ch concluded ha he empowe men o G een IT p o ides a signi ican ole in c ea i i y and inno a ion as well as social capi al, and a he same ime i also supplies a signi ican ole in inno a ion. Resea ch limi a ions/implica ions: . This s udy is p oposed o ill he esea ch gap and a he same ime o emphasize he impo ance o he c ea i e empowe men o SMEs in Indonesia in adop ing G een IT and ha hey a e no only eady o make use o G een IT. G een IT empowe men and social capi al in he c ea i e SMEs play an impo an unc ion ingene a ing o c ea i i y and inno a ion in he Yogyaka a’s c ea i e SMEs. C ea i e indus ies which capi alize c ea i e ideas and skills a e expec ed o posi i ely con ibu e o suppo he na ional economy. -719- Jou nal o Indus ial Enginee ing and Managemen – h p://dx.doi.o g/10.3926/jiem.1341 P ac ical implica ions: C ea i e SMEs g ow and de elop apidly he e and o m clus e s o c ea i e indus ies in acco dance wi h he esou ces o each clus e . O iginali y/ alue: This pape is a i s a emp o o e look he signi ican ole o g een IT empowe men in SMEs’ apid de elopmen in Yogyaka a, a g owing p o ince in economic sec o in Indonesia. The esul o he s udy is expec ed o lead o he simila esea ch which in he u u e will c a ou he ole o economic de elopmen and he use o en i onmen al iendly ma e ial o p oduc ion. Keywo ds: empowe men o G een IT, social capi al, c ea i i y, inno a ion, en i onmen al iendly 1. In oduc ion The de elopmen o he c ea i e indus y sec o s in Yogyaka a is expec ed o ace he challenges o he Associa ion o Sou heas Asian Na ions Economic Communi y (ASEAN Economic Communi y) 2015. Yogyaka a has a po ency o maximize i s c ea i e indus y sec o s. I is seen om i s po en ial human esou ces (HR) o de elop he sec o . Al hough i can be said ha he aw ma e ial supply is s ill ela i ely limi ed (h p://skalanews.com/be i a/de ail/188813/Indus i- K ea i -DIY-Dinilai-Mampu-Hadapi-MEA). Some Yogyaka a’s c ea i e SMEs ha e adop ed in o ma ion echnology o manage hei businesses, including he use o websi es, email, phone, and ax (Mua i & Roos ika, 2014; Mua i, Gusap ono, E endi & Cha ibaldi, 2012a; Mua i, Wahyuningsih, E endi & S iyono, 2012b; Mua i, 2012c; Achja i, Abdillah, Su yaningsum & Sup a man, 2010). Ne e heless, he use o in o ma ion echnology in SMEs in Indonesia, pa icula ly Yogyaka a, is s ill limi ed o epo s, p oduc designs, in e ne access and p esen a ion; andhence s a egic ac i i ies ha e no ye widely used (Wahid & Inda i, 2007; Mua i, e al., 2012a; Mua i & Roos ika, 2014; Sa osa, 2007). Resea ches show ha he adop ion o in o ma ion echnology among SMEs in Yogyaka a is s ill limi ed (Mua i, e al., 2012a; Handayaningsih & Pujiono, 2009), especially in he implemen a ion o G een IT awa eness (Ma iani & Imam, 2012). The main obs acles in he implemen a ion o G een IT in Indonesia a e human esou ces, capi al, and high in es men (Yunia i, 2012; Ma iani & Imam, 2012). Those a e he cons ain s o he go e nmen , uni e si ies and he c ea i e communi y, especially SMEs o pa icipa e in p epa ing and dissemina ing he use o G een IT in he u u e. G een IT model eadiness has been obse ed by se e al esea che s and ye hey s ill ocus on using g een IT eadiness iewed om he aspec o a i ude, policy, p ac ice, echnology, go e nance (Molla, Coope , Co bi & Deng, 2008; Tenhunen, 2011; Ma iani & Imam, 2012, Yunia i, 2012) and ICT pe sonnel (Wadwoba, Wanyembi, Omu e ema & Omieno, 2013; Fo s & Lenne o s, 2013). -720- Jou nal o Indus ial Enginee ing and Managemen – h p://dx.doi.o g/10.3926/jiem.1341 Molla e al. esea ch (2008) emphasized ha he unde s anding and he in luence o G een IT is a business wi h a sus ainable pe o mance. P inciples, p ac ices, and alues o G een IT can make a majo pilla o e- eadiness amewo k o help o ganiza ions e alua e hei eadiness o adop G een IT. Wi hou any p epa a ion, he G een IT app oach would only u n ou o be eac i e and c ea e an ad-hoc policy. Tenhunen (2011) examined he adop ion o G een IT in Finland by using a i ude measu emen s, pape less o ice, managemen , and i ualiza ion. The esul s sugges ed ha he ou a iables ha e an in luence on he adop ion o G een IT. Se e al companies ha e in oduced he concep and ac i i ies ela ed o G een IT. Bu he mechanical epai s and pape less o ice ac i i ies being execu ed do no show any impo ance o en i onmen al easons. In Indonesia, G een IT esea ch shows ha o ganiza ions su eyed did no ha e su icien capabili y o he eadiness o implemen G een IT. G een IT is ac ually expec ed o encou age a educ ion in ope a ing cos s (Ma iani & Imam, 2012). Howe e , Yunia i’s esul s (2012) concluded ha in gene al he i e esponden s in he manu ac u ing indus y ha e a posi i e a i ude e en hough he indica o s a e gaining a en ion because o he nega i e a i ude o he esponden s is on policy and go e nance indica o s despi e Wadwoba e al. esea ch esul s (2013) which p o ed ha IT pe sonnel is also impo an o he adop ion o G een IT. Likewise, esea ch esul s om Fo s and Lenne o s (2013) on HR aspec s, namely he owne , pa ne o ganiza ions, and cus ome s a e necessa y o ha e i he o ganiza ion wan s o conduc an audi o G een IT. This s udy is p oposed o ill he esea ch gap and a he same ime o emphasize he impo ance o he c ea i e empowe men o SMEs in Indonesia in adop ing G een IT and ha hey a e no only eady o make use o G een IT. Aspec s o empowe men and social capi al a e in e ela ed o each o he and hey a e e y impo an in he implemen a ion o G een IT, especially in c ea i e and inno a i e beha io s (Wahyuningsih, Mua i & Roos ika, 2014; Çekmecelioğlu & Özbağ, 2014; Cekmecelioglu & Gunsel, 2013; Seibe , Wang & Cou igh , 2011; Mawa di, 2007). 2. Theo y and Hypo hesis 2.1. G een IT: De ini ion, Mo i a ion and Focus A ea Business en e p ise, go e nmen , and associa ion a e now e y ocused on he impo ance o G een Economy. The concep o G een IT o ICT is no clea ly de ined ye . Ye he de ini ion om he ollowing wo expe s can p o ide an unde s anding o he G een IT concep and i s impac on a sus ainable business pe o mance and en i onmen . -721- Jou nal o Indus ial Enginee ing and Managemen – h p://dx.doi.o g/10.3926/jiem.1341 Mu ugesan (2008: pages 25-26) ound ha . “G een IT e e s o en i onmen ally sound IT. I ’s he s udy and p ac ice o designing, manu ac u ing, using, and disposing o compu e s, se e s, and associa ed subsys ems —such as moni o s, p in e s, s o age de ices, and ne wo king and communica ions sys ems—e icien ly and e ec i ely wi h minimal o no impac on he en i onmen . G een IT also s i es o achie e economic iabili y and imp o ed sys em pe o mance and use, while abiding by ou social and e hical esponsibili ies. Thus, g een IT includes he dimensions o en i onmen al sus ainabili y, he economics o ene gy e iciency, and he o al cos o owne ship, which includes he cos o disposal and ecycling”. Molla, Coope and Pi ayachawan (2009: page 4) and Tenhunen (2011: page 6) added ha . G een IT is a sys ema ic applica ion o en i onmen al sus ainabili y c i e ia o he design, p oduc ion, sou cing, use and disposal o he IT echnical in as uc u e as well as wi hin he human and manage ial componen s o he IT in as uc u e in o de o educe IT, business p ocess and supply chain ela ed emissions and was e and imp o e ene gy e iciency.” Two o hese de ini ions p o ide an unde s anding ha he adop ion o G een IT is impo an in he managemen o business o ganiza ions. Oz u k, Umi , Medeni, Ucuncu, Caylan, Akba e al. (2011) explained ha some s udies om academics and p ac i ione s ha e also been g owing apidly. Oz u k e al. (2011) con i med he Mines’s opinion (2008) who ound ha G ee IT se ices ma ke has ac ually g own apidly, almos $5 billion in 2013. Pasca 2013, he ma ke will decline as mos companies will ha e comple ed hei ini ial ound o g een IT implemen a ions. Acco ding o Tenhunen (2011), he e a e h ee ypes o mo i a ions o companies o go g een. G een solu ions can be ca ego ized o example as isk managemen , seeking business oppo uni ies and so called goodwill and esponsibili y o he socie y and en i onmen (Tenhunen, 2011). The impac o each o mo i a ion will s ill gi e a posi i e con ibu ion o bo h he o ganiza ion and he indi idual (Tenhunen, 2011; Mu ugesan, 2008). Mo e de ails can be seen in Table 1. -722- Jou nal o Indus ial Enginee ing and Managemen – h p://dx.doi.o g/10.3926/jiem.1341 Type o mo i a ion Desc ip ion E ec IT example En i onmen al isk managemen Aligning business ac i i ies wi h cu en and o hcoming ules and egula ions Reduce ope a ional and inancial isks Ene gy e icien da a cen e ope a ions help cu emissions and ene gy bill Upside bene i s Ino a ions and business oppo uni ies ha ‘imp o e long e m p o i abil y’ •Po en ial highe e enues, lowe cos s •A ac in es o s •In angible bene i s: b and loyal y and employee sa is ac ion •Use o IT o de elop new enewable ene gy solu ions •Ac i e pa icipa ion in de eloping en i onmen ally iendly egula o y en i onmen o elec onics En i onmen al s ewa dship “Doing he igh hing” Pu ing e o o en i onmen al esponsibili y especially in ega d o a i m’s co e business bene i s bo h s ockholde s and s akeholde s G een IT and inancial bene i s a e o en aligned Table 1. Mo i a ions behind en i onmen al esponsibili y (Tenhunen, 2011: page 13) Fu he mo e, Mu ugesan’s opinion (2008: pages 25-26) explains ha G een IT spans a numbe o ocus a eas and ac i i ies, including: design o en i onmen al sus ainabili y; ene gy-e icien compu ing; powe managemen ; da a cen e design, layou , and loca ion; se e i ualiza ion; esponsible disposal and ecycling; egula o y compliance; g een me ics, assessmen ools, and me hodology; en i onmen - ela ed isk mi iga ion; use o enewable ene gy sou ces; and eco-labeling o IT p oduc s. In a mo e comp ehensi e holis ic iew, en i onmen has an impac on IT. Acco ding o Mu ugesan (2008: pages 25-26), he e a e ou componen s ha can be used as a guide: 1. G een use. Reduce he ene gy consump ion o compu e s and o he in o ma ion sys ems and use hem in an en i onmen ally sound manne . 2. G een disposal. Re u bish and euse old compu e s and p ope ly ecycle unwan ed compu e s and o he elec onic equipmen . 3. G een design. Design ene gy e icien and en i onmen ally sound componen s, compu e s, se e s, and cooling equipmen . 4. G een manu ac u ing. Manu ac u e elec onic componen s, compu e s, and o he associa ed subsys ems wi h minimal o no impac on he en i onmen . The e o e, by ocusing on hose ou componen s, companies should be able o achie e a sus ainable business pe o mance and en i onmen . -723- Jou nal o Indus ial Enginee ing and Managemen – h p://dx.doi.o g/10.3926/jiem.1341 2.2. Empowe men , C ea i i y and Inno a ion A managemen consul an and an au ho W. Alan Randolph, in one hand, de ines ha “... empowe men is ecognizing and eleasing in o he o ganiza ion he powe ha people al eady ha e in Re iews hei weal h o use ul knowledge, expe ience and in e nal mo i a ion”', (K ei ne & Kinicki, 2003). On he o he hand, Pa kins and Zime man (1995) says ha , “...empowe men is he cons uc ha links indi idual s eng hs and compe encies, na u al helping sys ems, and p oac i e beha io s o social policy and social change. Empowe men heo y, esea ch, and in e en ion indi idual links well being wi h he la ge social and poli ical en i onmen . Enhance wellness o ien ed empowe men in e en ions also while hey aim o amelio a e p oblems, p o ide oppo uni ies o Ame icans o pa icipan s o de elop knowledge and skills, and engage p o essionals as collabo a o s ins ead o au ho i a i e expe s”. The abo e s a emen app o es ha empowe men has a e y good pu pose ha is o de elope businesses and while a he same ime o implemen g een IT, so ha hey will be mo e c ea i e and inno a i e. In Indonesia, acco ding o dec ee No. 20 o 2008 which explains ha he pu pose o empowe ing SMEs a e: (a) o ealize he na ional economic s uc u e which is said o be in balance, well g ow h, and jus ice, (b) o os e and de elop he capabili ies o SMEs o be s ong and independen businesses, and; (c) o enhance he ole o SMEs in egional de elopmen , job c ea ion, income gene a ion, economic g ow h and po e y alle ia ion o he people. Yogyaka a’s c ea i e SMEs seem o ha e ealized he abundan and ela i ely in expensi e cos o po en ial na u al and human esou ces. In he u u e, hose po encies a e e y impo an because many c ea i e SMEs ely on he a ailabili y o e icien esou ces and c ea i i y. Empowe men o SMEs in Indonesia is equi ed o p o ec and o p e en he incompa ible goals and compe i ions among SMEs. I is also expec ed o de elop a pa ne ship be ween he communi ies and o c ea e good ela ionship among SMEs. Empowe men o SMEs can be done h ough; (a) e i alizing and s eng hening he posi ion o SMEs in he na ional economic sys em, (b) e i alizing he co po a ions and s eng hening SMEs by imp o ing hei access o capi al, echnology, in o ma ion and ma ke s, and he imp o emen o business clima e as well, (c) op imizing he use o esou ces and de elopmen , and (d) de eloping he po ency o local esou ces. Some esea ches explain ha empowe men has a posi i e ela ionship wi h ou comes such as job sa is ac ion, o ganiza ional commi men , ask pe o mance, and con ex ual pe o mance. On he o he hand, an empowe men has nega i ely ela ed o employee empowe men s ain and u no e in en ion (Seibe e al., 2011). The indings di e om wha Çekmecelioğlu and Özbağ (2014) has said ha he empowe men o psychology will gi e a posi i e in luence on one’s c ea i i y. Someone can be said o be c ea i e and p oac i e -724- Jou nal o Indus ial Enginee ing and Managemen – h p://dx.doi.o g/10.3926/jiem.1341 because his o ganiza ion empowe s a e cul i a es him well. I is he ac ha c ea i i y e ec s inno a ion. Simila conclusion was also deli e ed by Çekmecelioğlu and Gunsel (2013) ha a c ea i e indi idual who wo ks in a c ea i e wo king en i onmen will a ec he inno a ion o ei he indi idual o in g oups wi hin an o ganiza ion. C ea i i y and inno a ion a e impo an o SMEs because c ea i i y is he p ocess o inding and inno a ion is he p ac ice o managemen . Indi idual c ea i i y is o en conside ed as a c i ical componen o acili a e o ganiza ional inno a ion (Sco , 1965; Amabile, 1988). In he u u e, i is expec ed ha indi idual o o ganiza ional c ea i i y will inc ease he long- e m success and sus ainabili y o he o ganiza ion (Tushman & O’Reilly, 1997), and he company’s compe i i e ad an age (Hun & Mo gan, 1995). H1. Empowe men o G een IT owa d he doe s o c ea i e SMEs posi i ely signi ican e ec on c ea i i y. H2. C ea i i y o he doe s o c ea i e SMEs posi i ely signi ican e ec on inno a ion. 2.3. Social Capi al and Inno a ion Mawa di (2007) s a es ha in he implemen a ion o empowe men in Indonesia, he e will be a close ela ionship be ween a local social capi al such as ins i u ion, local knowledge, no ms and local cus oms. Bou dieu (1983) de ines ha , "Social capi al is he agg ega e o he ac ual o po en ial esou ces which a e linked o possession o a du able ne wo k o mo e o less ins i u ionalized ela ionships o mu ual acquain ance and ecogni ion”. The ela ionship be ween SMEs wi h economic ins i u ions will be closely linked o social capi al owned by an indi idual o an o ganiza ion (Nahapie & Ghoshal, 1998), and is use ul o expand he ne wo k ha has a ecip ocal ela ionship wi h indi iduals and be ween g oups wi hin he o ganiza ion (Ba on & Hannan, 1994). Social capi al ocuses on he ela ionship be ween indi idual ne wo ks, mu ual us and he exis ence o no ms ha egula e he coope a ion ne wo ks (Pu nam, 1995). Meanwhile, Mua i e al. (2012b) epo ed ha when doing business incuba ion in c ea i e SMEs in Ban ul, Yogyaka a, i is ound ou ha social capi al (called “paguyuban”) is needed in he de elopmen o SMEs’ businesses. This associa ion may p o ide bene i s in ma ke in o ma ion, access o capi al, aining and men o ing, exhibi ion in o ma ion, p ices and simila no m- se ing which a e use ul o g oup p og ess. This is in line wi h he opinion o G oo ae and Bas elae (2001) and also Woolcock and Na ayan (2000) ha iends and colleagues, o people who en e in o any o ganiza ion will sha e each o he ’s p oblem ega dless o how well hey know each o he . Camps and Ma ques (2011) indings concluded ha social capi al can inc ease o ganiza ional inno a ion capabili ies. Kassa (2007) e en ound ha social capi al has -725- Jou nal o Indus ial Enginee ing and Managemen – h p://dx.doi.o g/10.3926/jiem.1341 a s ong in luence on he ac i i y o inno a ion. Social capi al is measu ed wi h di e en dimensions so ha i gi es di e en e ec on inno a ion. In he o he way a ound, Akçomak and Weel (2008) ound ou ha social capi al canno accele a e he g ow h o income pe - capi a in he EU. H3. Social capi als possessed by c ea i e SMEs will posi i ely signi ican e ec on inno a ion. 3. Resea ch Me hods The s udy was conduc ed on c ea i e SMEs in Ban ul, Yogyaka a P o ince. F om each dis ic chosen in he p o ince, he e we e wo selec ed illages ha a e ela i ely homogeneous and ha e he la ges business uni s which show he same cha ac e is ic o c ea i e SMEs. The popula ion in his s udy is all c ea i e SMEs in Ban ul, Yogyaka a. To de e mine he selec ed dis ic s, pu posi e sampling me hod is used o deno e he highes numbe o c ea i e SMEs om each dis ic . This s udy used quan i a i e analysis app oach adop ing Pa ial Leas Squa e (PLS) echniques. The eason o using PLS is ha i is a powe ul echnique ha can se e as a ool o analyze he la en a iables in s uc u al equa ion models wi h a a ie y o indica o s. Ano he eason is ha PLS does no equi e no mally dis ibu ed da a (Mua i & Roos ika, 2014). P ima y da a o he esea ch we e he ques ionnai es ha ha e been gi en di ec ly o esponden s and he in e iews wi h some o doe s. Meanwhile, he seconda y da a we e collec ed om se e al publica ions o local go e nmen and business magazines. Ques ionnai es we e adminis e ed om 130, and he esponden s who answe ed he quessionai es comple ely we e 102 esponden s ( esponse a e o 78%). The echnique used o measu e he empowe men o G een IT, social capi al, c ea i i y and inno a ion was Like scale which has i e al e na i e answe s: 1. S ongly Disag ee (SD) o 5. S ongly Ag ee (SA). The numbe o each a iable deno ed ha he empowe men o G een IT includes 5 i ems, social capi al includes 4 i ems, c ea i i y includes 5 i ems, and inno a ion includes 7 i ems. The esul s o alidi y and eliabili y es s on all o es ’ i ems and a iables showed ha hey a e alid and eliable. -726- Jou nal o Indus ial Enginee ing and Managemen – h p://dx.doi.o g/10.3926/jiem.1341 4. Resul s 4.1. Desc ip i e Da a Da a om alid 102 esponden s’ esponse is shown in Table 2. The desc ip ions o esponden s’ cha ac e is ics analyzed in his esea ch we e based on esponden s’ s a us, ype o business, company’s age, numbe o employees, and IT unc ions. The esponden s in his esea ch mos ly wo k on handic a businesses (32 esponden s – 31%), wi h less han 5 yea s o age (45 SMEs – 44%), ha ing a numbe o employees less han 50 people (76 SMEs – 75%), and using IT o ype hei epo s (56 SMEs – 55%). 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