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http://dx.doi.org/10.13106/jafeb.2021.vol8.no12.0337

Market Structure, Conduct, and Performance of the Creative Industry in Indonesia  

DJULIUS, Horas (Faculty of Economics and Business, Universitas Pasundan)
XIAO, Lixian (Guangdong University of Foreign Studies)
JUANIM, Juanim (Faculty of Economics and Business, Universitas Pasundan)
PRIATNA, Deden Komar (Faculty of Economics and Business, Universitas Winayamukti)
MUNAWAROH, Siti (Faculty of Economics and Business, Universitas Pasundan)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.12, 2021 , pp. 337-343 More about this Journal
Abstract
The study's objective is to ascertain the state of the creative industry's market structure, the behavior of entrepreneurs ("conduct"), and the performance of the creative industry in Indonesia. Additionally, this study evaluates the relationship between structure, conduct, and performance within the context of the relationship between the three. This study analyzes longitudinal data from 2005 to 2015 for sub-sectors within the creative industry. The first step is to group statistical sub-sectors into creative-industry categories. The next step is to quantify and analyze the structure, behavior, and performance indicators of each creative industry subsector. Then, using a random effect panel data model, the relationship between structure and performance was estimated and examined. The findings of this study suggest that market share and concentration ratio calculations indicate that the creative industry in Indonesia has a monopolistic market structure. With this market framework, the creative industry's conduct can have an effect on prices. This is undoubtedly consistent with the features of the creative industry, which emphasize innovation as a means of adding value. The panel data estimation findings suggest the need for long-term efforts to maintain a market framework that enables businesses to compete fairly, innovate, and bring value.
Keywords
Market Structure; Industry Conduct; Industry Performance; Creative industry; Business Innovation;
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