Acculturative Product Excellence and Business Sustainability in Samarinda Sarong Weaving Industry

Abstract

This study analyzes acculturative isolation product excellence as a mediator between value creation, product innovation, and business sustainability in Samarinda's sarong weaving industry. Using resource-based view theory, data were collected from 102 MSMEs and weaving artisans through questionnaires and analyzed using SEM-PLS. Results showed acculturative isolation product excellence significantly affects business sustainability directly (β=0.528; p<0.001) and through isolation mechanisms as a partial mediator (indirect effect=0.102; p=0.070). Product innovation only shows indirect effects through isolation mechanisms (indirect effect=0.106; p=0.063). These findings emphasize culture-based isolation strategies in creating sustainable competitive advantage. Practical implications suggest strengthening intellectual property protection, integrating innovation with traditional values, and improving market education for sustainable traditional craft industry business models.