An application of analytical hierarchy process (AHP) in formulating priority strategy for enhancing creative industry competitiveness

Abstract

This study is aimed to analyze the variables of external environment, organizational resources, organizational capabilities, and business competitiveness. The study priorities strategy and programs as basic for developing the competitiveness of creative industry in Indonesia. The number of respondents who participated in this survey was 200, while the key informants were 10 people. Method of analysis involved descriptive statistics, and analytical hierarchy process (AHP). Then, data were processed by using both IBM SPSS 24, and Expert Choice 11. The results show that creative industry competitiveness has relatively declined during covid-19 pandemic. Although external environment support, organizational resources, and organizational capabilities were at good shape. The priority strategy for competitiveness development should be focused on strengthen the organizational capabilities by considering the dynamics of external environmental factors and internal resource capacity. Then, the priority programs developed sequentially are increasing partnerships with suppliers, distributors and customers, analyzing social and economic aspects, developing human resource capacity, and using information and communication technology in products and services. In addition, another important program is strengthening the supply chain system.