Utilization of network resources by SMEs in the creative economy sector in Banyumas Regency, Central Java, Indonesia

Abstract

This article provides some research findings investigating the efforts of two small and medium enterprises (SMEs) in the creative economy sector at the local level in introducing their businesses to external parties. A qualitative approach with two cases of SMEs utilizing in-depth interviews with ten informants was employed in this study to show that the primary objective of using network resources is to develop their capacity to promote their products for broader markets externally supported by various parties. The two SMEs selected in this research are Batik and Dablongan Clothing
enterprises. Their products rely on ideas, knowledge, and creativity as the main features of the creative economy. This article shows that network existence plays an important role to promote SMEs in the creative economy sector regarding policy failure. The results show the efforts of SMEs to utilize network resources to improve their market access. Social community, academia, professional organization, diaspora, and commercial banks play an essential role to promote SMEs to address the failure of local government in the development of a creative economy. There are four key roles that various types of network played in supporting development of SMEs, namely (1) to overcome the production process, (2) to explore more potential domestic customers, (3) to expand new markets overseas and to improve the quality of SMEs products, and (4) to bridge internet literacy gaps. Thus, it is essential for the local government to promote SMEs in the creative economy sector by utilizing the power of network resources.