The effect of the external environment, internal resources, organizational capability, and competency on the competitiveness of creative industry in South Sulawesi

Abstract

The creative industry plays an important role in increasing people‘s incomes and fostering economic growth in South Sulawesi. The purpose of this study was to analyze the effect of external environment on competitiveness, to analyze the effect of internal resources on competitiveness, to analyze the effect of organizational capabilities on competitiveness, and to analyze the effect of competency on competitiveness creative industries in South Sulawesi, primarily in Tana Toraja Regency and North Toraja Regency. This study used a questionnaire as the main data collection tool. The research sample was 180 business units which determined by using proportional random sampling technique. These respondents included managers or business owners. The method of analysis that used both descriptive statistics analysis, and multiple regression analysis. The results showed that external environment has a positive and significant effect on competitiveness. Internal resource has a positive and significant effect on competitiveness. Then, organization capability has a positive and significant effect on competitiveness. Moreover, competency has a positive and significant effect on competitiveness. Furthermore, this study also found that variable of internal resources was an important factor in enhancing the creative industries’ competitiveness compared other variables.

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