Synergy Prosperity: Creative Industries and Economic Growth in Developing Countries

I. Gusti Ngurah Eddy Mulya, I. Nyoman Djinar Setiawina, I. Nyoman Mahaendra Yasa, I. Gusti Wayan Murjana Yasa


National economic growth is largely determined by the dynamics of the regional economy, while the regional economy is generally supported by micro-, small- and medium-scale economic activity. Business units included in the category of micro, small and medium enterprises (MSMEs) are the lifeblood of the regional and national economies. The purpose of this study was to analyze the influence of cultural capital, the role of traditional villages and community participation in local bank performance either directly or through local bank performance mediation. This research was conducted on local bank customers’ SMEs. The data were collected through a questionnaire for the proprietors, with a total of 5,244 units from which a sample of 152 units was obtained. Data analysis was performed using the Partial Least Squares Structural Equation Modeling (PLS-SEM) method. The results show that cultural capital, the role of traditional village, and community participation have a positive and significant effect on local bank performance. Cultural capital and local bank performance have a positive and significant effect on the welfare of MSMEs, and while the role of traditional villages and community participation has an effect on the welfare of MSME it is not significant.



Keywords: Cultural Capital, Local Wisdom, Economy Growth, Prosperity.


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