Adoption of Bamboo Crafts SME Innovation

Sri Sarwo Sari

, Titis Angesthi Maheswari

, Dyah Sugandini

, and Dwi Hari Laksana

Sekolah Tinggi Ilmu Ekonomi Trisna Negara

Universitas Pembangunan Nasional Veteran Yogyakarta

Keywords: Innovation Characteristics, Adoption of Innovation

Abstract: This study aims to determine the positive influence of the characteristics of innovation, namely relative

excellence, suitability, complexity, trial and visibility towards the adoption of innovation. This study uses a

quantitative approach. Data collection is done by distributing questionnaires. The unit of research analysis is

the Bamboo Artisans in Sendari, Tirtoadi, Mlati, Sleman, Yogyakarta. The respondents that were sampled

were 48 respondents. The analytical method used in testing hypotheses is multiple regression. The results of

this study have a positive influence between the characteristics of innovation, namely relative superiority,

suitability, complexity, temptation and visibility of the adoption of innovation.

1 INTRODUCTION

Today globalization and increasing competition

cause companies to compete with each other to get

the attention of consumers, so companies are required

to be proactive in responding to changes in a dynamic

environment. Free trade will lead to increasingly

competitive competition, so consumers are more

selective in choosing products. Companies are

required to be more innovative in producing a product

(Ferdinand, 2000).

To win the competition, the company must

innovate. Innovation will increase the added value of

a product, and innovation will create a new product

that can provide better solutions for solving problems

faced by consumers. So the ability to innovate is

needed by the company. Innovation must be able to

make different products in the eyes of consumers, so

consumers are more interested in buying these

products than competing products. One key to

innovation is the human resources that drive the

company. So the ability to innovate is needed by the

company (Sumarwan, 2010).

An innovative product will have a surplus value

compared to rival products or substitute products, and

the innovative product will create its market segment

and spin-off old and inefficient products (Tan, 1994).

Various handicraft products are produced by many

production centers scattered in various regions in

Yogyakarta, including bamboo handicraft products.

In Yogyakarta itself, there are various kinds of

SMEs. One of them is bamboo handicraft UKM in

Sendari, Tirtoadi, Mlati, Sleman, Yogyakarta. The

Bamboo Craft Industry in Sendari Hamlet has existed

since 1960. There are around 48 bamboo artisans.

Artisans obtain the raw materials in the form of

bamboo from various regions, namely Sleman, Kulon

Progo, Magelang, Klaten, and Pacitan. The price

offered also varies depending on the size, type of

bamboo, model, and level of complexity.

Bamboo artisans in Sendari use various types of

bamboo plants in their production processes, among

others, Petung Bamboo, Apus Bamboo, Legi

Bamboo, Wulung Bamboo, Tutul Bamboo, and

Cendani Bamboo.

Crafts produced at Sendari include: lively, bed,

chair, table, gazebo, room divider, and so on. The

bamboo craft of Sendari Village has penetrated export

markets, such as the Netherlands, the Philippines,

Saudi Arabia, India, Malaysia, Britain, Norway,

France, and America. To penetrate the export market

to all of these countries, the artisans develop the

innovation and creativity of their products.

Just like artisans in other fields, bamboo

handicraft businesses also experience ups and downs.

The lack of tools and innovation in the production

process is an obstacle for bamboo handicraft

producers. The demand for bamboo handicrafts is

currently increasing. Thus the artisans can meet the

needs of consumers with adequate equipment and

product innovation by the artisans. For bamboo

662

Sari, S., Maheswari, T., Sugandini, D. and Laksana, D.

Adoption of Bamboo Crafts SME Innovation.

DOI: 10.5220/0009962106620665

In Proceedings of the International Conference of Business, Economy, Entrepreneurship and Management (ICBEEM 2019), pages 662-665

ISBN: 978-989-758-471-8

furniture artisans in Sendari, supporting tools for the

production process are needed. There are various

kinds of innovations carried out by bamboo artisans,

from the design, equipment, and preservation.

Some of the innovations made by artisans at

Sendari are innovations in equipment and

preservation systems. The innovation is significant to

be done to increase sales of handicraft products and

meet market needs. The artisans realized the

importance of innovation in the production process,

so they started to adopt innovations in equipment,

namely the adoption of nail firing innovations, which

are the leading equipment for making bamboo crafts

Another innovation that began to be adopted by

bamboo artisans in Sendari is Vertical shock diffusion

(VSD) or better known as the preservation process.

The preservation process (VSD) has been carried out

by artisans since 2000 and is still being developed.

Innovations in nail firing equipment and

preservation systems (VSD) provide benefits and

benefits for artisans because it requires a short time in

the manufacture of handicraft products. Innovation is

needed by artisans to keep winning the competition.

Thus the artisans are required to be able to make a

variety of new products, develop various kinds of

innovations, and be able to adopt innovations. Based

on the background and description above, the authors

take the title of the study on "The Effect of Innovation

Characteristics on the Adoption of Innovation on

Bamboo Artisans in Sendari Village, Tirtoadi, Mlati,

Sleman, Yogyakarta."

2 LITERATURE REVIEW

2.1 Behavior Adoption of Innovations

Understanding consumer behavior is an action that is

directly involved in obtaining, consuming, and

depleting products and services, including processes

that precede and follow up from this action. The main

problems found in marketing and consumer behavior,

namely consumer response to new services or

products. The basis for observing consumer responses

to new products is part of a study called innovation

diffusion.

Consumer researchers examine the diffusion of

innovation, which is divided into the diffusion

process and the adoption process. The diffusion

process is a macro process in which the process

focuses on the development and innovation of new

products or services carried out by a company aimed

at the market, how companies can see market needs

and then determine an innovation for these markets

(Schifman and Kanuk, 2010).

The decision taken by marketers is the process of

how the market can accept a new product after this

referred to as the adoption process.

2.2 Diffusion of Innovations

In this process, more emphasis is placed on individual

consumers in responding to a new product, whether

to accept or reject the product. The process of

diffusion is concerned with how innovation can be

accepted, how it can be integrated into the existing

market share. More precisely, diffusion is an

acceptance of innovation, can be in the form of goods

or services, which are conveyed through

communication, either through the mass media,

salespeople, daily talks, to members of the social

system, namely society in general in a certain period

(Rogers, 1995 ).

Diffusion is essential because not everyone can

accept an innovation, or in the end, can accept it, but

it takes a long time. That is more because there is a

change from a product or service that was previously

commonly used, and people need time to be able to

accept new ideas of innovation from the company and

can generally use the new offer. The tendency that

occurs in society is reluctant to try something new and

get out of their habit.

2.3 Hypothesis

Based on the theoretical basis and framework of

thought, theoretical and empirical studies, the

following hypotheses can be made:

a. Relative superiority influences the adoption of

Innovations in Bamboo Artisans in Sendari

Village, Mlati, Tirtoadi, Sleman, Yogyakarta.

b. Suitability influences the adoption of

Innovations in Bamboo Artisans in Sendari

Village, Tirtoadi, Mlati, Sleman, Yogyakarta.

c. Complexity influences the adoption of

Innovations in Bamboo Artisans in Sendari

Village, Tirtoadi, Mlati, Sleman, Yogyakarta.

d. Experiments affect the adoption of Innovations

in Bamboo Artisans in Sendari Village,

Tirtoadi, Mlati, Sleman, Yogyakarta.

e. Visibility influences the adoption of

Innovations in Bamboo Artisans in Sendari

Village, Tirtoadi, Mlati, Sleman, Yogyakarta.

Adoption of Bamboo Crafts SME Innovation

663

3 RESEARCH METHOD

3.1 Types and Research Objects

The type of research used in this study is quantitative

research using surveys. The object of this study was

the Bamboo artisans in Sendari Village, Tirtoadi,

Mlati, Sleman. The population of this study was all

Bamboo Artisans in Sendari Village, Tirtoadi, Mlati,

Sleman, Yogyakarta, totaling 48 Artisans with the

sampling technique used was a census.

3.2 Data Analysis Technique the

Analytical

A tool used is multiple linear regression analysis.

Researchers use multiple linear regression analysis

because it intends to predict how the rise and fall of

the dependent variable if two or more independent

variables as a predictor factor is manipulated (raised

the value down).

4 RESULTS

4.1 Characteristics of Respondents

Characteristics of respondents were analyzed in this

study were gender, length of employment, income,

and education; the results of a descriptive analysis can

be explained as follows:

Gender Number%

Male 38 79.2

Female 10 20.8

Education

SD 4 8.4

SMP 16 33.3

SMA 28 28.3

Income

1 - 2 million 41 85.4

> 2 million 7 14.6

Length of work

<15 years 2 4.2

15 - 30 years 32 66.7

> 30 years 14 29.2

4.2 Results of Multiple Linear

Regression Analysis and

Hypothesis Testing

The Results of multiple linear regression analysis are

used to determine the effect of superiority relative,

suitability, complexity, trialability, visibility to the

adoption of innovation can be seen as follows

5 CONCLUSIONS

Based on the results of data analysis and discussion,

the following conclusions are obtained:

1. The results of the study show that the relative

superiority has a positive and significant effect

on the adoption of innovations in bamboo

artisans in Sendari Village, Tirtoadi, Mlati,

Sleman. This means that the better the relative

advantages, the more adoption of innovation.

2. The results showed that suitability had a

positive and significant effect on the adoption

of innovations in bamboo artisans in Sendari

Village, Tirtoadi, Mlati, Sleman. This means

that the better the suitability, the more adoption

of innovation.

3. The results showed that complexity had a

negative and significant effect on the adoption

of innovations in bamboo artisans in Sendari

Village, Tirtoadi, Mlati, Sleman. This means

that the lower the complexity, the adoption of

innovation is increasing.

4. The results showed that the experiment had a

positive and significant effect on the adoption

of innovations in bamboo artisans in Sendari

Village, Tirtoadi, Mlati, Sleman. This means

that the better the experiment, the adoption of

innovation will increase.

5. The results showed that visibility had a positive

and significant effect on the adoption of

innovations in bamboo artisans in Sendari

Village, Tirtoadi, Mlati, Sleman. This means

that the better visibility, the adoption of

innovation is increasing.

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