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PUBLISHED DATE: - 03-08-2024
https://doi.org/10.37547/tajiir/ NICSPEEP-2024-01-06
THE INFLUENCE OF CREATIVE ECONOMICS ON
HOUSEHOLD INCOME
Laurencia Primawati Degodona
HKBP Nommensen University, Indonesia
Email: -
INTRODUCTION
Industry creative is one moving industry in the
field effort find something new with increase
creativity and innovation that can create
something different dair before or the same, but
the required uses or benefits are very different , so
this industry is capable compete in the middle
increasing global escalation and decline ability the
economy of other countries is moderate happen
resulting global crisis State conflict that does not
finished (Hadziq, Achmad Faisal, Yunia, Noorma
and Firdaus, 2023) .
Every country is currently competing to improve
ability , be it ability source State power , as well
ability source Power others are in order create
something form capable product compete with
product kind or different products type
(Koumoutsea, Aikaterini, Boufounou & and
Mergos, 2023) . Competition marked with
RESEARCH ARTICLE
Open Access
Abstract
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increasing effort creative from These various
countries are a big blow or whip for a medium
country just growing depend on material raw or
relying source natural resources that are marketed
raw , on which the State relies source natural forces
do not capable create creativity to goods existing
raw materials , so that the management process
business Still done with send material raw
materials to other countries (Rahmawati, Alni,
Wahyuningsih, Sri Handari and Garad, 2023) .
Creativity is very close connection with the
increase in new ideas, where these new ideas are
related tightly with ability someone to find
something new, innovative and creative is in order
create and discover the appropriate product is not
only for consumer needs , but also for market needs
(Putra, Arif Rachman, 2022) . Raise new ideas
towards creativity product is the key to retention
relevance and power competitive in the market,
where someone who wants to improve business
creative can do market research to identify trend
moderate consumers and industry develop . Party
owner The industry could use feedback from
consumers to understand needs and preferences
them , as well as to find areas of improvement or
innovation (Teresa, Benjamin F. and Zitcer, 2020) .
Creating new ideas depends to creation design
product , where the creation process design
product No only profitable from facet enhancement
ability products to meet needs and improvements
income in society . This will make owner industry
this creative will always repair product and create
product others indeed needed public (Rismayadi,
Budi and Maemunah, 2018) .
Slick and good product design , as well planned will
be able to with easy made when owner business
own creativity high , so owner no need to work
harder to think about and find way to compete with
product similar and different competitors type
(Liu, Cathy Yang, Hu, Fox Zhiyong and Jeong, 2020)
. This makes every industry must prepare all way
to always endure from onslaught product
competitor Good from Domestic products , as well
as Foreign products , where with design different
products , both in terms of features , functions and
uses , then is expected to be able to compete and
win the hearts of consumers To use increase
income maximum for operational processes next
(Abad-Segura, Emilio and González-Zamar, 2019) .
Creativity to the creation of new ideas is not just for
the company big , but also done by business family
or MSMEs, where MSMEs have to design new ideas,
carry out the design process new products ,
checking process material raw and analytical
process towards the production process , where
new ideas issued must be synchronous and must
also be in accordance with what is designed
beforehand to get excited operational smoothly
and can generate income family that manufactures
and designs MSME products (Istanti, Enny, Kn &
and Gs, 2021) .
For business House ladder of new ideas and the
development process new products must be
adapted with vision dna mission to be carried ,
which is for MSMEs through business House ladder
will tend make these efforts can improve market
share in the future capable compete with business
others , where competition with business kind dna
different businesses type required No only
innovation and designing new ideas regarding
product only , but also innovation with bringing
new ideas to production and operational processes
company , as well as new ideas for the distribution
process goods and delivery goods for goods No
damaged and broken , so with new ideas and plans
products , production processes and systems
distribution is expected to improve satisfaction
consumers and can improve sale To use increase
income (Mutuc, Eugene Burgos, Lee, Jen Sin and
Tsai, 2019) .
Medan City is the central city trading from the start
of trading big until MSME trade , where Medan City
can always improve the capacity it has , so capable
load comfortable from existing business without
exists extortion from every people who don't
known on behalf of Government and tend to harm
MSME income .
Within the period In 2022, the number of MSMEs in
Medan City will be as high as 38,343 units
businesses , and in 2023 there will be 35,450
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business units tend decrease compared to 2022.
This is due to the lack of new ideas in the design
process product , planning business and
production processes so that influence on quality
low and inclined products No in demand by
customers , so effect on the decline amount MSME
income , where the majority of MSMEs are
housewives stairs trying to do activity trade in
order enhancement income House stairs to meet
household needs ladder .
PROBLEM FORMULATION
As for the formula problems that arise from this
research is how variable creation of new ideas and
design product influential to enhancement income
House ladder through creativity as intervening
variable .
RESEARCH PURPOSES
As for the formula problems that arise from this
research is how variable creation of new ideas and
design product influential to enhancement income
House ladder through creativity as intervening
variable .
RESEARCH ORIGINALITY
Subject from This research is MSMEs in Medan City,
where The variables in this research are variables
independent , that is creation of new ideas and
design product , variable dependent , i.e variable
enhancement income House ladder as well as
intervening variables are variables creativity . The
results of the data analysis used using SEM analysis
with using SMART PLS 4.0 software. As for
technique data collection with questionnaire .
LITERATURE REVIEW
Creative Economy
creative economy is a sector an economy that
focuses on creation and exploitation riches
intellectual through creativity , skills , and talents
individual . This includes various industries that
produce products and services with mark plus tall
through innovation and creativity (Fuadi, 2019) .
Economic benefits creative is the process of
creating jobs , increasing growth economy ,
diversification economy and improve global
competition (Gunartin, Gunartin, Mulyanto, Edi
and Sunarsi, 2020) .
Indicator from economy creative is:
1.
GDP growth
2.
Improvement growth economy
3.
Reduce unemployment
4.
Increase quality products and market share
(Yuslin, 2021)
Discovery of New Ideas
The discovery of new ideas is an important process
in economics creative that can encourage
innovation and growth (Symons, Jessica and
Hurley, 2018) . With utilise various existing
strategies and methods from individuals and
organizations can improve ability them to discover
and develop new ideas that are innovative and
empowering competitive tall (Juwairia, 2023) .
Indicator from discovery of new ideas , namely :
1.
Number of ideas generated
2.
Creative
3.
Innovative
4.
Planning new products (Cooper, Kerris and
Stewart, 2021) .
Planning Product
Planning product is an involved process various
stages to develop a new product or improve it
existing products to meet consumer needs , have
optimal function , and power competitiveness in
the market (Wardana, Ludi Wishnu, 2023) .
For the design process product required
continuous market research and analysis process ,
where Market research is aimed at observing
product competitor dair side products and also
benefits , as well from facet planning and design
products required by consumers (Castillo-Vergara,
Mauricio, 2018) .
Indicator from planning products are:
1.
Creative
2.
Innovative
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3.
Enhancement quality
4.
Satisfaction consumer (Iek, Mesak and
Ratang, 2020) .
CREATIVITY
Creativity is the ability to generate new and
original ideas that have value and relevance . This
is an involved thought process imagination ,
innovation , and the ability to see something from
different perspective . Creativity is very important
in a variety of ways aspect life , incl arts , science ,
business , and technology (Sukma, Muhammad,
Hartono, Djoni and Prihawantoro, 2018) . With
understand and develop creativity , individuals and
organizations can achieve higher achievement ,
found solution innovative , and creating mark
added significantly (Dulay, Toyib Muhammad,
2019) .
Indicator creativity is:
1.
Innovation
2.
Enhancement quality
3.
Good product design (Kadir, Rachmawaty,
Musakirawati and Mukti, 2023) .
Enhancement Household Income
Enhancement income House the stairs are the goal
important to many individuals and families to
achieve well-being better economy . There are
several strategies that can be implemented to
improve income House ladder (Rahmadana, 2023)
. With apply several strategies for improvement
income , house stairs can improve income them and
achieve well-being better economy (Ge, Taoan,
2022) .
Indicator enhancement income House stairs are:
1.
Enhancement Skills
2.
Increase ability
3.
Increase development self (Purnama,
Suryari, Baedowi, Hikmal and Putrasetia, 2023)
CONCEPTUAL FRAMEWORK
As for the picture framework conceptual research
are:
Figure 1 Framework Conceptual
Hypothesis
1.
The discovery of new ideas is influential to
enhancement income House ladder
2.
Planning product influential to enhancement
income House ladder
3.
The discovery of new ideas is influential to
creativity
4.
Planning product influential to creativity
5.
Creativity influential to enhancement
income House ladder
Peningkata
n
Pendaatan
Rumah
Tangga
Penciptaan Ide
Baru
Perancangan
Produk
Kreatifitas
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6.
The discovery of new ideas is influential to
enhancement income House ladder through
creativity as intervening variable
7.
Planning product influential to enhancement
income House ladder through creativity as
intervening variable .
RESEARCH METHODS
Method this research was carried out use method
descriptive quantitative with use analysis method
structural equation model (SEM), where According
to (Cardno, 2019) SEM analysis is a technique
detailed data analysis each other relate and
influence each other variable constructs that exist
in the research . The population in this study is
35,450 MSME units in Medan City in 2023, where
method taking the sample done with use method
purposive sampling , where according to (Cardno,
2019) method taking sample with use purposive
sampling is method taking the sample the sample
specified in the conditions certain . As for the
amount samples taken can be carried out with
using the Slovin formula as following :
n
= N / ( 1 + Ne² ) = 35,450 / (1 + 35,450 x 0.1²)
= 99.72 = 100 MSME business units in Medan
City
RESEARCH RESULT AND DISCUSSION
RESEARCH RESULT
Testing Descriptive
Testing
descriptive
done
with
analyze
characteristics that of 100 MSME units in Medan
City . As for descriptive analysis about
characteristics respondents according to the
following table are:
Table 1 Characteristics Respondent
Variable
Category
Frequency
Percentage (%)
Type of business
Shoe
40
40
Food
50
50
Toy
10
10
Table above explained that the largest number of respondents answer respondent questions based on
type business is the respondent whose business is is business food as many as 50% or 50 respondents .
Respondent who answered Few are the respondents who had to do it business toy as many as 10% or 10
respondents .
As for output from the SEM test can be described through a Bootstrapping diagram following :
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Figure 2 Bootstrapping diagram
Convergent Validity Analysis
(Cardno, 2019) stated that the analysis convergent validity is one type validity in measurements or
instruments research showing data from every variable construct is feasible used . The results of the
convergent validity test in this research are:
Table 2 Test Convergent Validity
Variable
Indicator
Outer
Loading
Discovery of
New Ideas (X
1
)
PIB 1
0.854
PIB 2
0.871
PIB 3
0.833
PIB 4
0.820
Planning
Product (X
2
)
PP 1
0.840
PP 2
0.751
PP 3
0.863
PIB
PIB
2
PIB
3
0,8
33
0,8
54
KRF
PPR
T
PPRT
1
PPRT
2
PPRT
3
0,8
84
0,8
52
0,8
34
4,2
11
6,4
04
PIB
1
0,8
71
KF
1
KF
2
KF
3
6,5
42
5,2
30
0,8
80
0,8
66
4,3
30
0,8
14
PP
PP
1
PP
2
PP
3
0,8
40
0,7
51
0,8
63
3,4
54
6,5
31
PIB
4
0,8
20
PP
4
0,8
56
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PP 4
0.856
Improvement
Household
Income ( Y )
PPRT 1
0.834
PPRT 2
0.852
PPRT 3
0.884
Creativity (Z)
KRF 1
0.880
KRF2
0.866
KRF 3
0.814
Source : Results of Data Processing With PLS 3.0, 2024
Table above stated that the data from every the variable is feasible and suitable for use through further
data analysis .
Average Variant Extracted Analysis (AVE)
(Cardno, 2019) states that the AVE test is one techniques used to assess whether the existing data is
available variable construction is fulfilled assumption validity . As for the results testing Average Variant
Extracted (AVE) is in the following table :
Table 3 AVE Test
Variable
AVE
Discovery of New Ideas (X
1
)
0.83 0
Planning Product (X
2
)
0.870
Enhancement Household Income ( Y )
0.844
Creativity (Z)
0.854
Source : Data Processing Results with PLS 4.0, 2024
Table above explain mark Average Variant
Extracted (AVE) more big of 0.5 which means that
dissemination of existing data Already fulfill
assumption data validity and feasibility used .
Composite Reliability Analysis
According to (Cardno, 2019) testing Composite
Reliability is construct model techniques for
knowing and answering is has happen data
reliability or not . This can be seen in the following
table :
Table 4 Composite Reliability Test
Variable
Composite Reliability
Discovery of New Ideas (X
1
)
0.882
Planning Product (X
2
)
0.820
Enhancement Household Income ( Y )
0.771
Creativity (Z)
0.853
Source : Data Processing Results with PLS 4.0, 2024
Table above states that value composite reliability
is greater from of 0.6, where the data spread is
sufficient reliability or is feasible used .
Discriminant Validity Analysis
In factor analysis confirmatory (CFA) or modeling
equality structural (SEM), validity analysis the
discriminant is the one used to see difference real
from the data in each variable construct . Adapan
The results of the Discriminant Validity analysis
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can be seen in Table 5 below :
Table 5 Discriminant Validity Analysis
Enhancement
Household
Income
Moderating
Effect 1
Enhancement
Household
Income
Moderating
Effect 2
Enhancement
Household
Income
Moderating
Effect 3
Enhancement
Household
Income
Moderating
Effect 4
Discovery of New
Ideas
,767
1,000
,743
,622
Planning Product
,666
,743
1,000
,726
Enhancement
Household Income
,755
,782
,845
,767
Creativity
1,000
,743
,666
,635
Source : PLS Data Processing Results, 2024
Based on from the table above , it can be seen that the AVE value of One equation to equation construct
others who don't each other related , so has fulfill mark Discriminant Validity .
Path Coefficient Testing
As for the path coefficient test , it can be known through table the following :
Table 6 R Square Test
Variable
R Square
Discovery of New Ideas (X
1
)
0.881
Planning Product (X
2
)
0.840
Enhancement Household Income ( Y )
0.864
Creativity (Z)
0.846
Source : Data Processing Results with PLS 4.0, 2024
From the table above , the R Square value of the
variable enhancement income House stairs can be
explained by variables discovery of new ideas,
design products and creativity amounting to
86.4%, while the remaining 13.6% can be
explained by other variables not included in this
study .
Hypothesis testing
Test result hypothesis can be seen as following :
Table 7 Hypothesis Testing
Hypothesis
Influence
T-Statistics
P-Value
Results
H1
Discovery of new
ideas
to
enhancement
income
House
ladder
6,404
0,000
Accepted
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H2
Planning product
to enhancement
income House
ladder
5,230
0.101
Accepted
H3
Discovery of new
ideas health to
creativity
6,542
0.001
Accepted
H4
Planning product
to creativity
6,531
0.100
Accepted
H5
Creativity
to
enhancement
income
House
ladder
4,211
0,000
Accepted
H9
Discovery of new
ideas
to
enhancement
income
House
ladder through
creativity
as
intervening
variable
5,330
0,000
Accepted
H10
Planning product
to enhancement
income
House
ladder through
creativity
as
intervening
variable
3,454
0,000
Accepted
Source : Data Processing Results with PLS 3.0, 2023
According to the table above , it can be concluded
that partially variable discovery of new ideas and
design influential products to enhancement income
House ladder and influence to creativity .
Simultaneously variable discovery of new ideas
and design product influential to enhancement
income House ladder through variable creativity
public as intervening variable .
DISCUSSION
Discovery of Influential New Ideas To
Enhancement Household Income
Research result states that the discovery of new
ideas is influential to increase income House ladder
. This is in accordance with study from (Bergan,
Tegan L., Gorman-Murray, Andrew and Power,
2021) which states that the discovery of new ideas
in the home MSME industry ladder will tend create
something The product is new and meets
expectations customers and capable raise income
To use increase income for industry House hand .
Planning
Product
Influential
Against
Improvement Household Income
Research result explains that design product
influential to enhancement house income ladder .
This is in line with study (Granpayehvaghei,
Tahereh, 2019) which states that design Good
products can improve good and useful products for
society at a time increase income for business and
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home ladder .
Discovery of Influential New Ideas To Creativity
According to results existing research variable
discovery of influential new ideas to creativity .
This is in accordance with study (Silvia Tria,
Nawawi, Zuhrinal M., Jannah, 2023) which states
that the discovery of new ideas from product which
I will increase thinking creative and capable launch
innovation to create new product .
Planning Product Influential To Creativity
According to results existing research variable
planning product influential to creativity . This is in
accordance with study (Yetmi, Yosi Safri and
Ahdiyatuningsih, 2020) which states that the
design process the right product will tend create
creative and flexible products , as well create
something creative innovation to use product .
Creativity
Influential
To
Enhancement
Household Income
Research result states that creativity influential to
increase income House ladder . This is in
accordance with study (Rahmadana, 2023) which
explains that creativity is in every business unit
will tend give birth to good and quality product dna
useful for users and capable compete to produce
and improve income effort and increase income
House ladder .
Discovery of Influential New Ideas To
Enhancement
Household
Income
Through
Creativity as Intervening Variables
Research result describes that variable discovery
of influential new ideas to increase income House
ladder through creativity as intervening variable .
This is in accordance with research (Iek, Mesak and
Ratang, 2020) which explains that finding new
ideas for small creative industry products
(households) will give rise to a spirit of creativity in
designing business processes to increase business
income and household income.
Planning Product Influential To Enhancement
Household Income Through Creativity as
Intervening Variables
Research result describes that variable planning
product influential to increase income House
ladder through creativity as intervening variable .
This is in accordance with research (Purnama,
Suryari, Baedowi, Hikmal and Putrasetia, 2023)
which states that product design must pay
attention to the creative abilities of businesses,
where existing businesses can produce not only
good products but also increase the economy and
household income.
IMPLEMENTATION
The more increase discovery of new ideas, then the
design process products for MSME businesses and
homes hand become the more increase the ability
to create and design new products , where
increasing creativity will increase the ability of
MSMEs to produce new products that meet
expectations and desires consumers in order to
boost and increase income No only for MSMEs, but
also to increase business House ladder .
CONCLUSION
From the results the research then the existing
conclusion , namely partially variable discovery of
new ideas and design influential products to
enhancement income House ladder and influence
to creativity . Simultaneously variable discovery of
new ideas and design product influential to
enhancement income House ladder through
variable creativity public as intervening variable .
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