ENHANCING THE COMPETITIVENESS OF LOMBOK’S CREATIVE ECONOMY: VALUE CREATION AND SOCIAL RESPONSIBILITY IN LOCAL AGRO-CRAFT INDUSTRIES

Abstract

In developing tourism-driven regions, the survival and scaling of creative industries depend heavily on their microeconomic competitiveness and ability to generate sustainable local impacts. This community service initiative examines methods to enhance the competitive advantage of Lombok’s creative economy by optimizing value creation and corporate social responsibility frameworks. The program was executed in strategic partnership with two benchmark local enterprises in Mataram, Lombok: NUTSAFIR Cookies, representing the sustainable agricultural processing sector, and Dwi Kristy Mutiara, representing the highvalue cultural craft sector. The primary objective was to transition these micro, small, and medium enterprises (MSMEs) from traditional operating models to highly competitive, socially responsible institutions that foster community-wide economic growth. Using a participatory action learning approach, the intervention delivered strategic training on unique product differentiation, geographical brand storytelling, ethical local sourcing, and inclusive community-based supply chain structures. The results indicate that structured value creation—rooted in the authentic utilization of Lombok's natural and cultural heritage— significantly increased the market premium and consumer appeal of the partners' products. Furthermore, embedding social responsibility into their core business models effectively mobilized local community networks as active economic stakeholders rather than mere suppliers. This initiative concludes that the convergence of localized value creation and structured social responsibility acts as a vital mechanism for boosting regional competitiveness and securing long-term economic autonomy within Lombok's creative economy.