Local Tourism Businesses in Indonesia
A Pathway to Crisis Resilient Development?
Keywords:Embeddedness Framework, Indonesia, Silver Souvenir Industry, Small Business, Sustainable Development Goals
The aim of this paper is to explore ways in which small tourism-based enterprises can offer a crisis-resilient pathway to sustainable development. Based on a mixed-embeddedness framework, this paper explores the multiple strategies that small enterprises in the silver souvenir industry of Kotagede (Yogyakarta, Indonesia) applied to cope with hardship during the Indonesian decade of crisis (1996-2006). The data on which this paper builds stem from qualitative research conducted in Yogyakarta over a time span of 20 years. This paper makes two contributions to the current literature. The first contribution is to offer empirical, longitudinal, primary data on small-firm performances against the background of fluctuations in the tourism industry. The second contribution is conceptual, arguing that an embeddedness approach, sensitive to location-specific characteristics, promises a better understanding of small tourism enterprises as crisis-resilient development path- ways. In doing so, this paper also asserts that small businesses, due to their embeddedness in household economies and subcontracting arrangements that include rural labor, have the capacity to become agents of the United Nation’s Sustainable Development Goals.
Apostolopoulos, N., Al-Dajani, H., Holt, D., Jones, P., & Newbery, R. (2018). Entrepreneurship and the sustainable development goals. Contemporary Issues in Entrepreneurship Research, 8, 1-7.
Aspers, P., & Dodd, N. (2015). Introduction. In P. Aspers & N. Dodd (Eds.), Re-imagining economic sociology (pp. 1-33). Oxford: Oxford University Press.
Auemsuvarn, P. (2019). How brand personality can assist in achieving the sustainable development goals (SDGs) for small and medium-sized enterprises (SMEs) in developing countries. Journal of Business and Retail Management Research, 13, 63-72.
Berger, P., & Luckmann, T. (1967). The social construction of reality: A treatise in the sociology of knowledge. New York: Anchor Books.
Burt, R. (2000). The network entrepreneur. In R. Swedberg (Ed.), Entrepreneurship. The social science view (pp. 281-306). Oxford: Oxford University Press.
Dahles, H. (2001). Tourism, heritage and national culture in Java. Dilemmas of a local community. Richmond: Curzon Press.
Dahles, H. (2004). McBusiness versus Confucius? Anthropological perspectives on transnational organisations and networks. Inaugural Lecture. Amsterdam: Vrije Universiteit.
Dahles, H. (2018). The sustainability of small business resilience. The local tourism industry of Yogyakarta, Indonesia, a decade after the crisis. In A. A. Lew & J. Cheer (Eds.), Tourism, resilience and sustainability. Adapting to social, political and economic change (pp. 150-163). London: Routledge.
Dahles, H., & Susilowati, T. (2013). Entrepreneurship in the informal sector. The case of the pedicab drivers of Yogyakarta, Indonesia. Journal of Small Business and Entrepreneurship, 26(3), 241-259.
Dahles, H., & Susilowati, T. (2015). Business resilience in times of growth and crisis. Annals of Tourism Research, 51, 34-50.
Departemen Pariwisata, Pos dan Telekomunikasi, KANWIL VIII (1996). Statistik Pariwisata, Pos dan Telekomunikasi. Daerah Istimewa Yogyakarta Tahun 1995. Daerah Istimewa Yogyakarta.
Dinas Kebudayaan dan Pariwisata Propinsi Daerah Istimewa Yogyakarta (2003). Statistik Pariwisata Dae- rah Istimewa Yogyakarta 2002. Yogyakarta.
Dinas Pariwisata Daerah Istimewa Yogyakarta (2009). Statistik Kepariwisataan 2008. Yogyakarta. Dinas Pariwisata Daerah Istimewa Yogyakarta (2012). Statistik Kepariwisataan 2012. Yogyakarta. Dinas Pariwisata Daerah Istimewa Yogyakarta (2015). Statistik Kepariwisataan 2015. Yogyakarta. Dinas Pariwisata Daerah Istimewa Yogyakarta (2018). Statistik Kepariwisataan 2018. Yogyakarta.
Drakopoulou Dodd, S., & Anderson, A. (2007). Mumpsimus and the mything of the individualistic entre- preneur. International Small Business Journal, 25(4), 341-360.
Ferguson, J., Dahles, H., & Susilowati, T. (2017). Social capital revisited: A boundary spanning perspective on entrepreneurship under crises. Asia Pacific Business Review, 23(2), 171-191.
Granovetter, M. (1973). The strength of weak ties. American Journal of Sociology, 78(6), 1360-1380. Granovetter, M. (1985). Economic action and social structure: The problem of embeddedness. American Journal of Sociology, 91(3), 481-510.
Granovetter, M. (1995). Getting a job. Chicago: University of Chicago Press.
Hoang, H., & Antoncic, B. (2003). Network-based research in entrepreneurship: A critical review. Journal of Business Venturing, 18(2), 165-187.
Hüsken, F., & Koning, J. (2006). Between two worlds: Social security in Indonesia. In J. Koning & F. Hüsken (Eds.), Ropewalking and safety nets, local ways of managing insecurities in Indonesia (pp.1-26). Leiden: Brill.
Ikaputra (2011). Reconstructing heritage post earthquake. The case of Kotagede, Yogyakarta Indonesia. Journal of Basic and Applied Scientific Research, 1(11), 2364-2371.
Jack, S., & Anderson, A. (2002). The effects of embeddedness on the entrepreneurial process. Journal of Business Venturing, 17(5), 467-487.
Jack, S., Moult, S., Anderson, A., & Dodd, S. (2010). The entrepreneurial network evolving: Patterns of change. International Small Business Journal, 28(4), 315-337.
Janesick, V. (1998). The dance of qualitative research design: Metaphor, methodolatry, and meaning. In N. Denzin & Y. Lincoln (Eds.), Handbook of Qualitative Research (pp. 209-219). London: Sage Publications.
Kalantaridis, C. (2009). SME strategy, embeddedness and performance in East Cleveland, North East England. International Small Business Journal, 27(4), 496-521.
Kamal-Chaoui, L. (2017). Unlocking the potential of SMEs for the SDGs. Retrieved from https://oecd- development-matters.org/2017/04/03/unlocking-the-potential-of-smes-for-the-sdgs/
Kloosterman, R. (2003). Creating opportunities: Policies aimed at increasing openings for immigrant en- trepreneurs in the Netherlands. Entrepreneurship & Regional Development, 15(2), 167-181.
Kloosterman, R. (2010). Matching opportunities with resources: A framework for analyzing (migrant) entrepre- neurship from a mixed embeddedness perspective. Entrepreneurship & Regional Development, 22(1), 25-45.
Kloosterman, R., & Rath, J. (2001). Immigrant entrepreneurs in advanced economies: Mixed embedded- ness further explored. Journal of Ethnic and Migration Studies, 27(2), 189-201.
Kloosterman, R., Van der Leun, J., & Rath, J. (1999). Mixed embeddedness: (In)formal economic activities and immigrant businesses in the Netherlands. International Journal of Urban and Regional Research, 23(2), 252-66.
Koning, J. (2010). Business, belief and belonging: Small business owners and conversion to charismatic Christianity. In M. Dieleman, J. Koning, & P. Post (Eds.), Chinese Indonesians and regime change (pp. 23-46). Boston: Brill.
Leonard, M. (2000). Coping strategies in developed and developing societies: The workings of the informal economy. Journal of International Development, 2(8), 1069-1085.
Lin, N., Ensel, W., & Vaughn, J. (1981). Social resources and strength of ties: Structural factors in occupational status attainment. American Sociological Review, 46(4), 393-405.
Miles, M., & Huberman, A. M. (1994). Qualitative data analysis. An expanded sourcebook (2nd ed.). London: Sage Publications.
Nee, V., & Opper, S. (2015). Economic institutions from networks. In P. Aspers & N. Dodd (Eds.), Re-imagining economic sociology (pp. 148-173). Oxford: Oxford University Press.
Neergaard, H. (2005). Networking activities in technology-based entrepreneurial teams. International Small Business Journal, 23(3), 257-278.
Peng, M., & Zhou, J. Q. (2005). How network strategies and institutional transitions evolve in Asia. Asia Pacific Journal of Management, 22, 321-336.
Philipson, J., Bennett, K., Lowe, P., & Raley, M. (2004). Adaptive responses and asset strategies: The experience of rural micro-firms and foot and mouth disease. Journal of Rural Studies, 20, 227-243.
Polanyi, K. (1944). The Great Transformation. Boston: Beacon.
Portes, A. (2010). Economic sociology. A systematic inquiry. Princeton: Princeton University Press.
Ritchie, J., & Lewis, J. (2004). Qualitative research practice. A guide for social science students and researchers. London: Sage Publications.
Scheyvens, R., & Hughes, E. (2019). Can tourism help to “end poverty in all its forms everywhere”? The challenge of tourism addressing SDG1. Journal of Sustainable Tourism, 27(7), 1061-1079.
Schwartz-Shea, P. (2006). Judging quality: Evaluative criteria and epistemic communities. In D. Yanow & P. Schwartz-Shea (Eds.), Interpretation and method. Empirical research methods and the interpretive turn (pp. 89 114). New York: London.
Stewart, A. (2003). Help one another, use one another: Toward an anthropology of family business. Entrepreneurship Theory and Practice, 27(4), 383-395.
Su, X., & Chen, Z. (2017). Embeddedness and migrant tourism entrepreneurs: A Polanyian perspective. Environment and Planning A: Economy and Space, 49(3), 652-669.
Susilowati, P. T. (2010). The tourism industry under crisis. The struggle of small tourism enterprises in Yogyakarta. Unpublished dissertation. Amsterdam: Vrije Universiteit Amsterdam.
Swedberg, R. (2012). Theorizing in sociology and social science: Turning to the context of discovery. Theory and Society, 41, 1-40.
Trupp, A. (2015). Agency, social capital, and mixed embeddedness among Akha ethnic minority street vendors in Thailand’s tourist areas. SOJOURN: Journal of Social Issues in Southeast Asia, 30(3), 780-818.
Ulhoi, J. (2005). The social dimension of entrepreneurship. Technovation, 25, 939-946.
Vaara, E., & Lamberg, J.-A. (2015). Taking historical embeddedness seriously: Three historical approaches to advance strategy process and practice research. Academy of Management Review, 41, 633-657.
Verboven, H., & Vanherck, L. (2016). Sustainability management of SMEs and the UN Sustainable Development Goals. UmweltWirtschaftsForum, 24(2-3), 165-178.
Yuliantoro (2009, December 11). The tarnished future of Kotagede silver. The Jakarta Post. Retrieved from https://www.thejakartapost.com/news/2009/12/11/the-tarnished-future-kotagede-silver.html
Wijayanto, P. (2014). Managing Kotagede heritage districts after 2006 earthquake. Journal of Disaster Mitigation for Historical Cities, 8, 279-286.
Copyright (c) 2020 Society for South-East Asian Studies (SEAS)
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
For all articles published in ASEAS before December 2014 and after July 2022, copyright is retained by the authors. For articles published between January 2015 and June 2022, the Society for South-East Asian Studies (SEAS) is the copyright holder. Articles published in ASEAS before December 2019 are licensed under the following Creative Commons License: Attribution-NonCommercial-NoDerivs 3.0 Unported. Articles published after that date are licensed under the following Creative Commons License: Attribution-NonCommercial-NoDerivs 4.0 International. In both cases, this means that everybody is free to share (to copy, to distribute, and to transmit the work) under the following conditions:
Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
NonCommercial — You may not use the material for commercial purposes.
NoDerivatives — If you remix, transform, or build upon the material, you may not distribute the modified material.