Do the Ritual Dimension of Consumer Behavior and Religion Play Their Role in Innovation of Family Firm?

Susminingsih, Susminingsih and Kirana, Kusuma Chandra and Hermuningsih, Sri and Kanafi, Imam (2017) Do the Ritual Dimension of Consumer Behavior and Religion Play Their Role in Innovation of Family Firm? In: Conference Program International Conference on Business and Social Science. Annual Conference on Management and Social Sciences, Nagoya, pp. 1-12. ISBN 978-986-89298-7-6

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Abstract

The primary purpose of this paper is to explore the role of ritual dimension of consumer behavior and religion in innovation in family firm organization. There is no doubt that the economic life of Pekalongan city based on batik creative industry has become a tradition in the life of the people, passed down from generation to generation. Thus Pekalongan is widely known in Indonesia as the Batik City. The presence o f various economic infrastructures such as batik market, batik villages and batik galleries all over the city, confirms that the economic life of the city is based on the art, craft and culture of batik. The batik exports were mainly to Malaysia, UEA and Thailand. In 2009, batik cultural heritage was officially recognized by UNESCO through the decision of the 4th Meeting o f the intergovernmental Committee for safeguarding the Intangible Cultural Heritage in Abu Dhabi UAE on 2nd October 2009. This paper built with a number of interesting facts. First, batik becomes an important industry in order to creating jobs and revenue for society. Second, most of the batik industry is family business. Third, ritual dimensions of consumer behavior affect the batik trading. Fourth, the sustainability o f family firm organization of batik depends on innovation of batik product itself. This article makes three main contributions. First, we apply the ritual dimension of consumer behavior and its influence in level o f batik trading. Second, batik sales depend on consumer tastes. Third, by investigating consumer behavior, and religion affected on it, this study draws the need of innovation in family firm organization. This paper consider that value drive man to innovate their production by creating “new” objects. Then, the understanding of subjective and intangible value, namely religious and culture become an important to consideration in order to learn the relationship between consumer and innovation behavior. We will shed light on ritual dimension of consumer behavior (RDCB), religion (Re) and their interrelationship to look closely in family firm innovation (FFI). There are more than 800 batik industries in Pekalongan City, Central Java. The descriptive analyze were used in this study. This paper assumed that consumption behavior affected by the value. When they make the decision to consumption, also based on value. Generally, they determine the value of product by the quality, uniqueness, and utility. Sometimes, the values depend on a quality of object, but sometimes depend on uniqueness, on its utility or any combination between them. This research found that in batik industry, homo moralis or homo sosialis is going on the basis of the relationship between the worker and employer. The work climate that constructed at their place affects the enthusiasm to create new motif, new design because the worker feel happy and unstressed. Human resource should be innovation in every time as well as possible. The interaction between values and performance of organization similar with the new institutional theory which emphasized the importance o f cultural factors in understanding the business as organization and innovation, especially intangible innovation. The batik industry as cultural values form o f the source of the behavior that’s cultural rites of passages, especially in performances experience festivals such as Pekalongan batik carnival or international batik week, also in the marine charity event, marriage, death ceremony, and so on. More, this study try to understand the batik industry as a business negotiation which based on group learning that cover the family firm and consumer. The results show that consumer behavior means ritual experience and religion associated with the innovation of batik industry as a material and cultural heritage. The value, religion and culture have an important role into the family firm. The relation helps to learn about of the modifying of batik production. The interaction between values and performance of organization similar with the new institutional theory which emphasized the importance of cultural factors in understanding the business as organization and innovation, especially intangible innovation.

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