Acculturative Esthetic Attractiveness and Indigenous Product Attractiveness Model: Development of New Concepts to Improve Marketing Performance of Community-Based MSMEs

Abstract

The inventive potential of MSMEs has been instrumental in creating a competitive edge. Batik has emerged as a product that encountered significant competition, owing to its distinctive attributes intricately linked to the diverse resources present across various regions of Indonesia. These resources included background, geography, culture, and history. On the one hand, batik is rooted in indigenous values, but on the other, it is also open to acculturation. This research examined the impact of innovation capability on marketing performance, considering the mediating roles of acculturative esthetic appeal and the attractiveness of indigenous products. Eight hundred and sixty-seven respondents from batik MSMEs affiliated with communities in Indonesia were surveyed. The proposed relationships were examined and confirmed through the structural equation modeling approach, utilizing SmartPLS software version 4.0. The findings of the study indicated that the ability to innovate, which included factors such as marketing performance, acculturative esthetic attractiveness, and indigenous product attractiveness, had a significant impact. Innovation capability offered numerous options to integrate native values and assimilation to enhance sales performance and bolster marketing outreach. Acculturative esthetic attractiveness and indigenous product attractiveness positively influenced marketing performance. This study provided a theoretical enhancement to the Resource-Based View (RBV) paradigm concerning the development of marketing performance. The practical implication was to offer guidance to batik MSMEs on enhancing their marketing effectiveness by leveraging their innovation capabilities, particularly by exploiting local resources and embracing varied esthetic inspirations in Indonesia.