Thesis Submitted for the Degree of Doctor of Philosophy in Management in the University of Hull
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THE UNIVERSITY OF HULL Institutional Entrepreneurship in The Creative Industry in an Emerging Market: A Study of the Fashion Sector in Bandung, Indonesia Being a Thesis submitted for the Degree of Doctor of Philosophy in Management In the University of Hull by Jurry Hatammimi Bachelor of Economics, Padjadjaran University (Indonesia) Master of Management, Bandung Institute of Technology (Indonesia) September 2019 Abstract By spotlighting the creative fashion industry in an Indonesian city, Bandung, this study explores the underdeveloped institutional environment faced by the fashion industry actors, strategies taken by the fashion industry actors to deal with the underdeveloped institutional environment, the actors who play the roles of institutional entrepreneurs, and the nature of institutional work carried out by these institutional entrepreneurs. This exploratory research relies on a multiple case study approach by conducting in-depth interviews and documentary analysis. It is demonstrated in this study that Bandung’s fashion industry originated from communities’ creativity in showing their own identities through fashion. Fashion products based on the spirit of independence became a trend over time, along with the process of fashion brand creation by micro and small-scale enterprises, which acted as an inspiration for many youth communities to undergo a similar process. Some of these fashion brand creators also established an informal association that helped the fashion industry actors to deal with problematic institutional conditions. Furthermore, to make a greater impact on the city level, a forum that consisted of 50 communities initiated a creative economy development. It is argued in this study that this initiative spanned an institutional void related to creative economy development in Bandung. This study offers a contextualized understanding of how the fashion industry actors in Bandung, Indonesia, coped with the underdeveloped institutional environment. They were conducting practices that spanned institutional voids and resulted in new arrangements. This study develops an explanatory framework of institutional entrepreneurship in the fashion industry in an emerging market economy, hence it advances the study of institutional entrepreneurship and institutional work in the context of emerging markets. Keywords: institutional entrepreneurship, emerging markets, creative industries, fashion industry ii Acknowledgements All the praises and thanks be to Allah for His countless blessings on me and my family. I would like to express my deepest gratitude and genuine appreciation to my first supervisor, Dr. Marianne Afanassieva, for her encouragement, enlightenment, and support during this journey to gain my ‘research license’. I would also like to show my deepest gratitude and genuine appreciation to my second supervisor, Professor Alexandros Psychogios, for his assistance and guidance to make my PhD become more meaningful. I am very glad that they always inspired and given me self-confidence. Special thanks to Directorate General of Resources for Science Technology and Higher Education, Ministry of Research Technology and Higher Education, Republic of Indonesia and Telkom University for granting me a scholarship to pursue my education and supporting me in my endeavour to get the degree. I want to express my deepest gratitude to all participants of my study for providing me with their experiences and perceptions. I would like to thank all staff and my friends at the University of Hull for their support and help during the programme. Big appreciation to Mrs. Kathryn M. Spry and Mr. Jason as well, for their effort to make my writing flows clearly. I also acknowledge the huge contribution of my wife who has encouraged and supported me through the difficult times. In addition, my three little children have also had to tolerate me when I have been less than attentive to their needs. Finally, I massively thank my beloved parents who are always in my thoughts, and my brothers and sisters for their support. iii Dedication This thesis is dedicated to: My parents, for their nonstop prayer. The lady to whom I am most grateful, my lovely wife, Riri. My gorgeous children, Priya, Dyara, and Suri. My country, Indonesia iv Table of Contents Abstract………..…………………………………………………………………........ ii Acknowledgements………………………………………………................................ iii Dedication………..……………………………………………………………………. iv Table of Contents…………….………………………………………………………… v List of Tables………………...………………………………………………………. viii List of Figures…………………………………………………..……………………... ix Abbreviations………………………………………………………………………...... x CHAPTER 1. INTRODUCTION ................................................................................................. 1 1.1 Background and Research Problem .................................................................................. 1 1.2 Research Aim and Objectives ......................................................................................... 10 1.3 Research Questions ......................................................................................................... 11 1.4 Scope of the Study .......................................................................................................... 12 1.5 Country Background ....................................................................................................... 14 1.6 Contribution of The Study .............................................................................................. 16 1.7 Thesis Structure ............................................................................................................... 18 CHAPTER 2. LITERATURE REVIEW AND THEORETICAL UNDERPINNINGS ............. 21 2.1 Introduction ..................................................................................................................... 21 2.2 Institutional Entrepreneurship ......................................................................................... 21 2.2.1 Institutions and Entrepreneurship .............................................................................. 21 2.2.2 Institutional Entrepreneurship and Actors ................................................................. 26 2.2.3 Institutional Strategies ............................................................................................... 38 2.2.4 Institutional Entrepreneurship in the Context of Indonesia ....................................... 40 2.3 Creative Industries .......................................................................................................... 44 2.3.1 Global Creative Industries ......................................................................................... 44 2.3.2 Creative Industries in Indonesia ................................................................................. 48 2.3.3 Bandung’s Creative Industries ................................................................................... 54 2.3.4 Fashion Industry in Indonesia and Bandung .............................................................. 56 2.3.5 Branding in the Fashion Industry ............................................................................... 58 2.4 Institutional Entrepreneurship in Creative Industries in Emerging Markets ................... 59 2.5 Conceptual Framework ................................................................................................... 66 2.6 Conclusion ...................................................................................................................... 67 v CHAPTER 3. METHODOLOGY .............................................................................................. 69 3.1 Introduction ..................................................................................................................... 69 3.2 Research Philosophy ....................................................................................................... 69 3.3 Research Approach ......................................................................................................... 73 3.4 Research Design .............................................................................................................. 73 3.5 Selection of Participants .................................................................................................. 74 3.6 Data Gathering ................................................................................................................ 77 3.6.1 Choice of Strategies and Methods ............................................................................. 77 3.6.2 Preparations and Gaining Access ............................................................................... 80 3.6.3 Conducting the Interviews ......................................................................................... 82 3.6.4 Other Data Gathering Activities ................................................................................ 85 3.7 Validity ............................................................................................................................ 86 3.8 Reliability ........................................................................................................................ 88 3.9 Data Analysis .................................................................................................................. 89 3.10 Ethical Considerations .................................................................................................... 99 CHAPTER 4.