Development of the Business Model of Hyacinth Crafts Industry to Improve Competitive Advantage and Performance in a Wetland Environment

Abstract

In the era of industrial revolution 4.0, the development of the water hyacinth handicrafts industry requires a new model business. This study investigates the influence of marketing strategies, market orientation, entrepreneurial orientation, government policies, competitive advantage and performance. This study was conducted in Hulu Sungai Utara district, South Kalimantan, a province in Indonesia as a wetland area. Nearly 90 percent of the area is covered with water hyacinth plants. Water hyacinth handicrafts have the potential to develop in that area. The samples taken as many as 158 respondents. Data collection technique through observation and interviews using questionnaires. Partial Least Square was used in this study. The results show marketing strategies, government policies, and competitive advantage influence performance. Market orientation influences competitive advantage. The indications are marketing strategies, government policy, and competitive advantage play a role in improving performance. Market orientation plays a role in improving competitive advantage. This study suggests the business model that need to be developed in this industry are business models that are suited to the tastes of the customers, such as conducting digital promotion, market-oriented, positioning quality-based products (unique), adopting government policies, and encouraging the governments to establish a Special Vocational Training Center for craftsmen. Keywords: Business Model, Hyacinth Crafts Industry, Competitive Advantage, Performance