Factor Analysis and Strategies for Regional Economic Development based on Creative Industry and Halal Lifestyle

Indra Fajar Alamsyah; Hantoro Ksaid Notolegowo; Md. Nazim Uddin

doi:10.21111/at.v10i1.10608

Authors

Indra Fajar Alamsyah Universitas Islam Bandung http://orcid.org/0000-0001-8329-7871
Hantoro Ksaid Notolegowo Universitas Islam Bandung
Md. Nazim Uddin Ankara University Turkey

DOI:

https://doi.org/10.21111/at.v10i1.10608

Keywords:

Creative Economy, Exploratory Factor Analysis, Halal Industry, Halal Lifestyle, Regional Economic Development

Abstract

The majority of regional economic development for cities is a top-down approach where the government designs programs and runs programs for the community. This has the consequence of policies that are not on target, thus an alternative path with a bottom-up approach is needed. As part of the United Nations Educational, Scientific and Cultural Organization (UNESCO) Creative Cities Network, Bandung City continues to nurture the economic growth of the creative sector. In fact, creative industry has been the backbone of the city's economy for many years. Bandung is also a multicultural city inhabited by many young Muslims, this city is a potential place for the movement of the halal economy. The halal lifestyle in the last few years has shown an increasing trend in among young people in Bandung. This study wants to explore the factors of regional economic development through the creative economy and halal lifestyle using the Exploratory Factor Analysis (EFA) method. This study involved 113 entrepreneurs related to the creative and halal industries. Based on the results of this study, there are four main factors that can increase regional economic development in Bandung through the creative industry and halal lifestyle: (Factor 1) Economic growth support system; (Factor 2) Intellectual support system; (Factor 3) Marketing support system; (Factor 4) Collaborative culture support system. These factors are alternative paths with a bottom-up approach as the foundation for regional economic development in Bandung. And based on the results of this study, there is a novelty in the form of a bottom-up approach for public policy related to regional economic development, especially urban regional economic development based on creative and halal industries.

References

Almeida, G. G., & Almeida, P. (2023), The influence of destination image within the territorial brand on regional development, Cogent Social Sciences, 9:1, DOI: 10.1080/23311886.2023.2233260

Amanatillah, D. A., Isnaliana, I., & Jalilah, J. (2023). Bank Aceh Syariah Contribution in Supporting the Development of the Halal Tourism Sector In the City of Sabang. Al Tijarah, 9(2), 109–119. https://doi.org/10.21111/at.v9i2.10501

Badewa, A. S. (2022). Regional security complex: The Boko Haram menace and socio-economic development crises in the Sahel, Conflict, Security & Development, 22:4, 321-343, DOI: 10.1080/14678802.2022.2120256

Bukhari, S.F.H., Woodside, F.M., Hassan, R., Hussain, S. and Khurram, S. (2022), "Exploring the motives behind the purchase of western imported food products. A phenomenological study from a Muslim-dominated region", Journal of Islamic Marketing, Vol. 13 No. 2, pp. 481-507. https://doi.org/10.1108/JIMA-05-2020-0139

Che Arshad, N. and Irijanto, T.T. (2022), "The creative industries effects on economic performance in the time of pandemic", International Journal of Ethics and Systems, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJOES-10-2021-0199

Chen, Z., Chen, X. and Mak, B. (2021), "The hybrid discourse on creative tourism: illuminating the value creation process", International Journal of Culture, Tourism and Hospitality Research, Vol. 15 No. 4, pp. 547-564. https://doi.org/10.1108/IJCTHR-07-2020-0138

Cunningham,S., Marion McCutcheon, Greg Hearn & Mark David Ryan (2021) ‘Demand’ for culture and ‘allied’ industries: policy insights from multi-site creative economy research, International Journal of Cultural Policy, 27:6, 768-781, DOI: 10.1080/10286632.2020.1849168

Deniz, Z. C., & Erkut, G. (2022). Development agencies in Turkey: an inter-regional performance assessment, Innovation: The European Journal of Social Science Research, DOI: 10.1080/13511610.2022.2121267

Gashenko, I.V., Bogataya, I.N., Orobinskaya, I.V. and Zima, Y.S. (2018), "The Essence and Peculiarities of Implementing the Optimal Scenario of Digital Economy Development in Modern Russia", Sukhodolov, A.P., Popkova, E.G. and Litvinova, T.N. (Ed.) Models of Modern Information Economy, Emerald Publishing Limited, Bingley, pp. 313-322. https://doi.org/10.1108/978-1-78756-287-520181032

Gasparin, M. and Quinn, M. (2021), "The INCITE model of policy development for the creative industries: the case of Vietnam", Journal of Asian Business and Economic Studies, Vol. 28 No. 1, pp. 31-46. https://doi.org/10.1108/JABES-12-2019-0125

Grillitsch, M., Markku Sotarauta, Björn Asheim, Rune Dahl Fitjar, Silje Haus-Reve, Jari Kolehmainen, Heli Kurikka, Karl-Johan Lundquist, Mikhail Martynovich, Skirmante Monteilhet, Hjalti Nielsen, Magnus Nilsson, Josephine Rekers, Sami Sopanen & Linda Stihl (2023) Agency and economic change in regions: identifying routes to new path development using qualitative comparative analysis, Regional Studies, 57:8, 1453-1468, DOI: 10.1080/00343404.2022.2053095

Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2018). Multivariate Data Analysis (8th ed.). United Kingdom: Cengage Learning.

Han, W. (2022), "The capital logic of platform economy globalisation and it’s critique and transcendence", China Political Economy, Vol. 5 No. 1, pp. 88-106. https://doi.org/10.1108/CPE-10-2022-0016

Hidayat, S.E., Rafiki, A. and Nasution, M.D.T.P. (2022), "Halal industry’s response to a current and post-COVID-19 landscape and lessons from the past", Journal of Islamic Marketing, Vol. 13 No. 9, pp. 1843-1857. https://doi.org/10.1108/JIMA-06-2020-0180

Hong, M., Sun, S., Beg, A.B.M.R. and Zhou, Z. (2019), "Determinants of halal purchasing behaviour: evidences from China", Journal of Islamic Marketing, Vol. 10 No. 2, pp. 410-425. https://doi.org/10.1108/JIMA-03-2018-0053

Howkins, J. (2001). The Creative Economy: How People Make Money from Ideas. Penguin Books: London, UK.

Howkins, J. (2013). The Creative Economy: How People Make Money from Ideas. Transaction Publishers: Piscataway, New Jersey, United States

Islam, M.M. (2021), "Segmenting, targeting and positioning in Islamic marketing", Journal of Islamic Marketing, Vol. 12 No. 7, pp. 1385-1404. https://doi.org/10.1108/JIMA-10-2018-0181

Karoui, S. and Khemakhem, R. (2019), "Factors affecting the Islamic purchasing behavior – a qualitative study", Journal of Islamic Marketing, Vol. 10 No. 4, pp. 1104-1127. https://doi.org/10.1108/JIMA-12-2017-0145

Khan, F. and Callanan, M. (2017), "The “Halalification” of tourism", Journal of Islamic Marketing, Vol. 8 No. 4, pp. 558-577. https://doi.org/10.1108/JIMA-01-2016-0001

Kim, J., Han, W., Kim, D. and Paramita, W. (2013), "Is beauty in the eye of the beholder? Gender and beauty in the cosmetics sector: A comparative study of Indonesia and Korea", Marketing Intelligence & Planning, Vol. 31 No. 2, pp. 127-140. https://doi.org/10.1108/02634501311312035

Leppälä, S. and Desrochers, P. (2012), "Regional Economic Analysis: The Case for Methodological Individualism", Emanuel Andersson, D. (Ed.) The Spatial Market Process (Advances in Austrian Economics, Vol. 16), Emerald Group Publishing Limited, Bingley, pp. 25-56. https://doi.org/10.1108/S1529-2134(2012)0000016005

Mohd Nawawi, M.S.A., Abu-Hussin, M.F., Faid, M.S., Pauzi, N., Man, S. and Mohd Sabri, N. (2020), "The emergence of halal food industry in non-Muslim countries: a case study of Thailand", Journal of Islamic Marketing, Vol. 11 No. 4, pp. 917-931. https://doi.org/10.1108/JIMA-05-2018-0082

Moscovitz, H. (2021). Regional identity and economic development in ‘recovering’ regions: Exploring the Walloon case, Regional & Federal Studies, 31:5, 597-624, DOI: 10.1080/13597566.2019.1707673

Nilsen, T., Grillitsch, M., & Hauge, A. (2023) Varieties of periphery and local agency in regional development, Regional Studies, 57:4, 749-762, DOI: 10.1080/00343404.2022.2106364

Nugroho, S., Susila, I.,& Setyawan, A. (2018). Surakarta Creative Economy Development Model As an Effort to Create New Economic Resources. Jurnal Manajemen Daya Saing. Vol 20 No. 2. DOI: 10.23917/dayasaing.v20i2.7440

Nurozi, A. (2021). Design and Potential of Halal Tourism Industry in Yogyakarta Special Region. Journal of Islamic Economics Lariba. Vol 7 No 2. https://doi.org/10.20885/jielariba.vol7.iss2.art7

Ooi, C.-S. (2021), "The Creative Reputation Dilemma: Professional and Emotional Negotiation of Cultural Value", Lehman, K., Fillis, I. and Wickham, M. (Ed.) Exploring Cultural Value, Emerald Publishing Limited, Bingley, pp. 133-147. https://doi.org/10.1108/978-1-78973-515-420211013

Petry, J.F., Uchôa, A.G.F., Mendonça, M.B.d., Magalhães, K.d.L. and Benchimol, R.M.B. (2020), "The creative economy: an ethnographic framework for handcrafts in the Alto Solimões region of the Brazilian Amazon", International Journal of Social Economics, Vol. 47 No. 12, pp. 1651-1667. https://doi.org/10.1108/IJSE-04-2020-0262

Poniman, D., Purchase, S. and Sneddon, J. (2015), "Traceability systems in the Western Australia halal food supply chain", Asia Pacific Journal of Marketing and Logistics, Vol. 27 No. 2, pp. 324-348. https://doi.org/10.1108/APJML-05-2014-0082

Pourzakarya, M. and Fadaei Nezhad Bahramjerdi, S. (2022), "Reviewing the role of cultural and creative industries in developing an urban cultural policy platform in Rasht city, Iran", Journal of Place Management and Development, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JPMD-09-2021-0087

Pratomo, S., Ashar, K.,& Satria, D. (2021). Role of Creative Economy on Local Economic Development. Journal of Indonesian Applied Economics. Vol. 9 No. 2. https://doi.org/10.21776/ub.JIAE.009.02.4

Rachmiatie, A., Rahmafitria, F., Suryadi, K. and Larasati, A.R. (2022), "Classification of halal hotels based on industrial perceived value: a study of Indonesia and Thailand", International Journal of Tourism Cities, Vol. 8 No. 1, pp. 244-259. https://doi.org/10.1108/IJTC-04-2021-0063

Rypestøl, J. O., Martin, R., & Kyllingstad, N. (2022). New regional industrial path development and innovation networks in times of economic crisis, Industry and Innovation, 29:7, 879-898, DOI: 10.1080/13662716.2022.2082271

Saeed, B., Tasmin, R., Mahmood, A. and Hafeez, A. (2022), "Development of a multi-item Operational Excellence scale: Exploratory and confirmatory factor analysis", The TQM Journal, Vol. 34 No. 3, pp. 576-602. https://doi.org/10.1108/TQM-10-2020-0227

Shah, S.A., Azhar, S.M. and Bhutto, N.A. (2020), "Halal marketing: a marketing strategy perspective", Journal of Islamic Marketing, Vol. 11 No. 6, pp. 1641-1655. https://doi.org/10.1108/JIMA-11-2018-0211

Sopanah, A., Bahri, S., & Ghozali, M. (2018). Creative Economic Development Strategy in Malang City. KnE Social Sciences, 3(10). https://doi.org/10.18502/kss.v3i10.3386

Sotarauta, M., & Grillitsch, M. (2023). Studying human agency in regional development, Regional Studies, 57:8, 1409-1414, DOI: 10.1080/00343404.2023.2217224

Suban, S.A., Madhan, K. and Shagirbasha, S. (2021), "A bibliometric analysis of Halal and Islamic tourism", International Hospitality Review, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IHR-05-2021-0038

Tarigan, R. (2005). Ekonomi Regional. Teori dan Aplikasi. Bumi Aksara: Jakarta

Taylor, A., Thurmer, J., & Karácsonyi, D. (2022). Regional demographic and economic challenges for sustaining growth in Northern Australia, Regional Studies, Regional Science, 9:1, 425-445, DOI: 10.1080/21681376.2022.2082316

Todaro, M.,& Smith, S. (2015). Economic development. 12th edition. Pearson Education: Harlow, Essex.

Vargas-Sánchez, A. and Moral-Moral, M. (2019), "Halal tourism: state of the art", Tourism Review, Vol. 74 No. 3, pp. 385-399. https://doi.org/10.1108/TR-01-2018-0015

Wahyudin, U., Randa, A.R., El Karimah, K. and Santoso, I.M. (2022), "The misunderstanding of halal tourism in Bandung city - Indonesia: Muslim tourist arrivals are increasing in the obscurity of concepts", Journal of Islamic Marketing, Vol. 13 No. 12, pp. 2611-2629. https://doi.org/10.1108/JIMA-07-2020-0204

Wiktorowicz, J. (2017), "Competencies as a factor of economic deactivation: Application of exploratory factor analysis", International Journal of Social Economics, Vol. 44 No. 5, pp. 605-619. https://doi.org/10.1108/IJSE-08-2015-0198

Yakovlev, A., Olga Balaeva, Marina Predvoditeleva & Nina Ershova. (2022). Tourism industry in a ‘new reality’ and regional development opportunities: the case of Russia, Area Development and Policy, DOI: 10.1080/23792949.2022.2127414

Yoon, D. (2017), "The regional-innovation cluster policy for R&D efficiency and the creative economy: With focus on Daedeok Innopolis", Journal of Science and Technology Policy Management, Vol. 8 No. 2, pp. 206-226. https://doi.org/10.1108/JSTPM-09-2016-0025

Zaidah, N., Solihin, M.,& Muliadi, M. (2022). Halal Lifestyle dan Wara’ Lifestyle (Studi Kasus Pusat Halal Salman ITB). Jurnal Penelitian Ilmu Ushuluddin. Vol 2 No 3. https://doi.org/10.15575/jpiu.14440