V24N4 2

INTERNATIONAL JOURNAL OF BUSINESS, 24(4), 2019 ISSN: 1083-4346
A Competency Model for SMEs in the Creative

Economy
Atya Nur Aishaa, Iman Sudirmanb, Joko Siswantoc

Made Andrianid
a
Department of Industrial Engineering, Telkom University, Indonesia
Department of Industrial Engineering and Management
Institut Teknologi Bandung, Indonesia
atyanuraisha@gmail.com
b
Department of Industrial Engineering, Institut Teknologi Bandung, Indonesia
iman_s@mail.ti.itb.ac.id
c
j.siswanto@ti.itb.ac.id
d
mdandriani@mail.ti.itb.ac.id
ABSTRACT
The creative economy becomes a source of sustainable economic growth based on

innovation and creativity. A creative and innovative business requires human resources
with the necessary competence. Research on competency within the creative economy
has primarily focused on either each subsector or on large-scale enterprises. Thus, there
is a lack of competency research concerning creative economy small and medium
enterprises. This study aims to develop competency models for SMEs in a creative
economy based on the results of the literature review. A comparative analysis of the
competency models was conducted to obtain the proposed competency model. The
proposed competency model framework consists of three levels: competency category,
competency area, and competency element. The result of this study indicates that there
are 28 competency elements across the three competency categories. Besides, there are
differences in the needs of competency elements for managers and workers in the
creative-economy SMEs. These findings can be used as a basis for government and
business actors to apply competency-based human resource management for the
managers and workers in the creative-economy SMEs.
JEL Classifications: O15, O31, O53
Keywords: competency; competency model; manager and worker; creative and

innovative business; SMEs
The authors would like to acknowledge parties for their support in conducting this
research such as the Ministry of Research, Technology and Higher Education for research
funding and Management Industry Research Group ITB in facilitating support the
necessary tools in conducting the research.
370 Aisha, Sudirman, Siswanto, Andriani
I. INTRODUCTION
In the present era of globalisation and free trade, one of the emerging sectors is the
creative economy (Indonesian Creative Economy Agency, 2017). Globally, creative and
cultural industries (CCI) also play an active role in economic development. In the Asia
Pacific regions, this sector contributes to the revenue value of US $743 billion and
absorbs 12.7 million workers (Ernst and Young, 2015). Many of the factors that reinforce
the influence of the creative industry on the regional and national economy concern the
development of media and information and communication technology. Thus, it is
important for organisations to possess the corresponding skills (Mietzner and Kamprath,
2013).
Creativity and innovation produced at the individual and group levels are the keys
to the wealth of a nation in the 21st century. Furthermore, people are the key to
sustainable development as they can promote economic growth, social development and
environmental protection (United Nations Educational, Scientific and Cultural
Organisation, 2013). The CCIs have a good prospect for business and employment
prospect in developed countries, which can exploit their cultural diversity (Barcelona
Activa, 2011).
In Indonesia, the creative economy sector contributes to the national gross
domestic product (GDP) 7.38%, and with regard to employment, comprises 13.9% of the
total workforce. This sector has also contributed $19.4 billion in export value by 2015.
Indeed, the creative economy sector in Indonesia has significantly increased the national
economy by an average of 10.14% per year within the last 5 years (Indonesian Creative
Economy Agency, 2017). This indicates that the creative economy sector possesses
substantial potential for future development.
Growth of the creative economy sector is driven by businesses developed from the
ideas or creativity of human resources (Indonesian Creative Economy Agency, 2017).
Individual creativity is a key asset for coping with external changes and growing trend
patterns (Mietzner and Kamprath, 2013) to achieve a sustainable competitive advantage.
Thus, the development of this sector requires more talented, creative resources. The
workforce in the creative economy sector has a high turnover rate and high level of
competition (Bridgstock, 2011). However, to outdo the competition, these creative
human resources must meet equally high requirements (Li and Sun, 2016). Due to the
importance of human resources in these industries, companies must attract creative
potential through high-skilled recruitment (Mietzner and Kamprath, 2013).
One of the main difficulties faced by running a business in the creative economy
sector is the low level of human resource skills (Bank of Indonesia, 2015). Based on data
from the Central Bureau of Statistics (2017), the condition of human resources in the
creative economic sector is still dominated by workers with a high school education
background equivalent (57.20%). Therefore, one of the proposed strategies for
developing the creative economy is the development of HR competencies in the creative
economy (Ministry of Industry, 2009; Simatupang et al., 2012).
Developing creative potential can be done by increasing the competence possessed
by creative human resources (Galovska, 2015). Thus, competency is a necessary resource
and, it can be seen that managing competency can enhance value in human resource
strategy (Dai and Liang, 2012). The application of competency approach should begin
by compiling the competency model. The competency model is a simple list or catalogue
INTERNATIONAL JOURNAL OF BUSINESS, 24(4), 2019 371
that demonstrates the competencies required in a position, group of positions,

organisation, or process (Markus et al., 2005; Marrelli et al., 2005).
The creative economy sector is dominated by small and medium enterprises
(SMEs) that minimise economic disparities in society (Muizu and Hilmiana, 2016).
Differences in business size, location and managerial style can occur between subsectors
within the creative economy. However, all the creative economy subsectors clearly
ascertain the importance of creative human resources as an asset for business continuity
(Mietzner and Kamprath, 2013).
Because research regarding creative human resources and competency within the
creative economy sector is limited, a literature review is necessary to fully understand
the application of competency within the creative economy sector. The main research
question for this study is to seek answer for “What is the competency model for SMEs in
the creative economy sector?” This study aims to develop competency models for
creative economy SMEs based on the results of the literature review. Furthermore, a
comparative analysis of the list of competencies used in previous research was conducted.
From the results of this analysis, a theoretical competency model is proposed for
managers and workers within the SME creative economy sector. The compiled
competency model contains a list of generic competencies required for the managers and
workers of SMEs. Recommendations for the implementation as well as future research
opportunities on the competency model for creative SMEs is provided in the conclusion.
II. LITERATURE REVIEW
Literature review section will discuss about two concepts in this study, namely creative
economy and competency model. In the creative economy will be discussed about the
definition as well as several subsectors that included. The competency model section
discussed about the definition and approach in designing the competency model.
A. Creative Economy
There are several terms used to describe the creative economy sector, which include
“creative economy”, “creative industry”, and “creative and cultural industries. In this
section the definition of each concept will be explained.
The creative economy is a business sector that concerns the fields of art,
knowledge and technology, in which creativity from the human resources are the primary
domain of the business (United Nations Educational, Scientific and Cultural
Organisation, 2013). Value-added creations are based on the ideas or creativity of
creative people and the utilization of science, including cultural heritage and technology
(Indonesian Creative Economy Agency, 2017).
The creative industry is defined as a commercial enterprise that sustainably
manages creativity and intellectual property, i.e. its main resources, to generate profit
(Matheson, 2006). Creative industries include companies that create, produce or
distribute products and services that are culturally and creatively based. Products and
services resulting from the creative industry are heavily dependent on technological
development, as they act as innovative drivers for new technological products (Mietzner
and Kamprath, 2013).
The third concept, CCIs, are defined as business activities that produce, promote,
distribute or commercialize products, services and activities related to the region’s

culture or art (Ernst and Young, 2015). According to the United Nations Educational,
Scientific and Cultural Organization (2013), CCIs are present in two industries, namely
the culture industry and the creative industry. The culture industry refers to the
production and consumption of activities that symbolize or are related to culture, while
the creative industry includes broader productive endeavors, including those products
and services produced by the culture industry or those that are the result of technological
innovation processes.
Of the three definitions of the creative economy, creative industry and CCI
concept, they all refer to business activities based on creativity and / or innovation to
produce products and services. The definitions differ, however, with regard to regional
rules (United Nations Educational, Scientific and Cultural Organization, 2013). In
Indonesia, creative economic concepts are used because the creative economy has a
broader scope than the creative industry. The creative economy sector is a source of
economic, social, cultural and environmental value creation (Indonesian Creative
Economy Agency, 2017).
B. Competency
Before discussing the competency model, it is necessary to first introduce the concept of
competency. Competency is the fundamental characteristic of a person, which can be a
motive, a talent, a skill, a self-concept, or supportive knowledge, and which can affect
the resulting performance (Boyatzis, 1982; Spencer and Spencer, 1993). The competency
element must be objectively measurable (Marrelli et al., 2005).
Spencer and Spencer (1993) define competency as a fundamental characteristic of
an individual that influences the standard criteria and performance produced in a situation
or job. According to Marelli et al. (2005) competency is measurable human capability
and is needed to create an effective performance. Based on this definition, individual
competency is an underlying characteristic of individuals that can be measured and
contribute to the individual performance produced.
Competency shows the personality of an individual and can be used to predict
individual behavior and performance in carrying out activities. Every individual has
competencies that are different from each other (Spencer and Spencer, 1993). As a
manifestation of individual behavior, competency can be observed and measured.
Competency is a resource in an organization that needs to be fostered and developed
(Marelli et al., 2005).
C. Competency Model
The role of competency is key in human resource management, because in designing the
human resources program it is necessary to know the profile of the individual, as well as
the needs of the job profile (Mansfield, 1996). Adopting competencies enables
organisations to increase value in formulating human resource strategies (Dai and Liang,
2012). To adopt a competency approach, it is necessary to create a competency model
that describes the minimum list of competencies required for a position. The competency
model is the main tool in the human resource management system (Markus et al., 2005).
Mansfield (1996) defines the competency model as the detailed behavioural description
that encompasses the skills and traits that employees need to be able to perform the job
effectively. According to Marelli et al. (2005), the competency model is a structured

framework consisting of a list of competencies necessary to effectively perform a specific
job, group of work, organisation, function or process. Meanwhile, according to Campion
et al. (2011), the competency model is a collection of competencies that affect the
performance of certain positions, group positions or functional areas.
In designing a competency model, there are three approaches that are commonly
used: the educational approach, psychological approach and organisational approach. In
the educational approach, the competency model includes the outcome of knowledge,
skills and attitudes from one level of education and is assessed using the standard of
behaviour criteria. The compilation of competency models in this approach requires the
industry to obtain a list of technical skills necessary to achieve the expected work
outcome (Markus et al., 2005).
The psychological approach is also commonly used to develop a competency
model. This approach revealed that individual characteristics, including motives, talents,
skills, self-concept, or knowledge can predict the success of the resulting performance
(Boyatzis, 1982; Spencer and Spencer, 1993). Initially, this competency model was
developed for only one specific position, but once it was implemented, it developed into
the compilation of competency models for multiple jobs (Mansfield, 1996). Indeed, the
individual competencies that are conceptually or empirically correlated with performance
can be used as the basis for employee assessment, recruitment, placement and human
resource development (Dai and Liang, 2012).
The third approach is the organisational approach. This approach is based on the
organisation's competitive advantage, which is derived from factors that are valuable,
rare and can neither be imitated nor easily obtained externally. Hamel and Prahalad
(1990) have explained that the development of core competencies is key for organisations
to able to survive and thrive. Further organisational competencies need to be managed in
the human resources system, as core competencies include the knowledge, skills and
abilities required of all individuals within the organisation (Lahti, 1999). In this approach,
the competency model aims to translate organisational strategies into individual skills
and behaviours. The final output obtained is a list of competencies that need to be
possessed by various functional positions to strengthen organisational culture (Dai and
Liang, 2012). The competencies of all jobs need to be aligned with organizational
strategies to achieve organizational performance (Sanchez and Levine, 2009).
There are generally two types of competency model development: the single-job
competency model and the “one-size-fits-all” competency model. The first competency
model was developed for recruitment and selection. In this competency model, there are
10-20 competencies which comprise the specific definitions and behaviours needed to
produce an effective performance in specific job. However, developing the first type of
competency model requires a substantial amount of time and effort. The second type of
competency model contains a list of competencies for different positions, and is
composed of common competencies for various job/positions. The second type of
competency model is meant for individual development and placement, in accordance
with the competency profile possessed by various job profile (Mansfield, 1996).
The present study seeks to obtain a competency model from previous studies that
is related to the creative economy sector. The competency model was identified based on
the three, previously described approaches.
III. METHODOLOGY
First, a structured literature review was conducted and subsequently, the findings were
analyzed. A structured literature review is a technique for identifying libraries that are
relevant to the topic to discuss. It aims to find out the subject of study, the scope of
research, and the methods used in previous research so that the accumulated knowledge
can be learned and develop something that has been done by others. Literature study
varies according to the scope and depth in identifying research (Newman, 2014). There
are six stages in conducting a structured literature review according to Page (2008): (1)
defining the research question and type of literature review; (2) determine the scope of
the study to be known; (3) determine the time span of the research to be involved; (4)
determine the source of the search database to be used; (5) identify keywords and search
strings to be used; (6) determine the inclusion and exclusion criteria used to select
literature.
The scope of the study in this review structured literature is a competency model
in the creative economy sector or CCIs. In this study, the literature review is not limited
to years, to find out the length of research trends regarding competency models in this
sector. Keywords and strings used to search the literature review databases were tailored
to the scope of research.
For the literature review, three databases were used: the Web of Science (WoS),
Scopus and Google Scholar. Selection of Web of Science (WoS) and Scopus database
because the articles that will be published in both databases have passed a rigorous
selection process. In addition, in these databases there is high correlation between the
numbers of documents with the number of citations of each article (Duran and Montoya,
2018). Therefore, these databases are of sound repute. Google Scholar was also chosen
as a database source due to its open framework and because it encompasses a diverse
array of disciplines (Okoli, 2015) and Google Scholar is one of the general academic
databases recommended as a source of library search (Page, 2008). Some previous
studies also used the WoS database, Scopus (Munir et al., 2015; Duran and Montoya,
2018), and Google Scholar (Okoli, 2015; Haddaway et al., 2016).
There are several inclusion criteria used to select the literature sample that will be
analyzed in this study, including: (1) Describe the list and description of competencies.
This criterion is needed to answer the research objectives, namely developing a
competency model. Whereas the competency model is a list of competency
representations needed in positions or groups of positions or organizations (Marrelli et
al., 2005), so that in the literature to be used it must include a list of competencies and
descriptions relating to competencies. (2) Studies conducted in the creative industry. This
criterion is used in accordance with the scope of the research object to be discussed,
namely the creative economy sector. (3) Articles published in journals or conference
processes. This criterion is used to ensure the results of previous studies have gone
through a credible process and can be accounted for by the results of the study (Duran
and Montoya, 2018).
In accordance with the stages in conducting a structured literature review, a
summary of the criteria for conducting a search is presented in Table 1.
Table 1
Search and strategy string for literature review
Strategy Description
Databases Web of Science (WoS), Scopus, and Google Scholar
Search string or 1. WoS : TOPIC (“competenc*” AND “creative
keywords industr*”) Timespan: All years. Indexes: SCI-
EXPANDED, SSCI, AandHCI, CPCI-S, CPCI-
SSH, BKCI-S, BKCI-SSH, ESCI.
2. Scopus : TITLE-ABS-KEY (“competenc*”)
AND TITLE-ABS-KEY (“creative industr*”)
3. Google Scholar : “competency model” AND
“creative industry”
Timeframe All years
Language English
Study field Unspecified
Type of access to the document Unspecified
Inclusion 1. Explain the competency list and description
Were applied to titles, abstracts (and 2. Studies conducted in creative industry
full text 3. Article published in journals or conference
when it was necessary) proceedings.
Exclusion 1. Duplicated articles from the same research
Were applied to titles, abstracts (and 2. File could not be obtained
full text 3. Paper presented not in English
when it was necessary) 4. Studies weren´t related to the competency
topic in creative industry
5. Paper didn’t explain the competency list and
definition
The results of the findings in the field were further analysed and coded based on
the following criteria. Some of the criteria used to evaluate the findings based on previous
research:
• Approaches in the developing competency model, consisting of educational
approach, psychological approach, or organizational approach (Dai and Liang, 2012)
• Type of research, such as empirical or conceptual (Munir et al., 2015)
• The context discussed include organizational and target characteristics of the
individuals (Munir et al., 2015)
• Competency type, i.e. single-job competency model (type 1) or "one-size-fits-all"
competency model (type 2) (Mansfield, 1996)
• Competency alignment with organizational strategy (Lahti, 1999; Sanchez and
Levine, 2009)
• Competency categories, including entrepreneurial, managerial, creative economy
context (Aisha et al., 2016)
From the relevant literature, a list of initial competencies is used in previous
literature. Based on this list, if there are competency elements that have similar or similar
keywords, then the competency element is considered the same. This aims to eliminate
the number of competency elements so as not too much (Shoop et al., 2015). To simplify
the comparison process, a reference literature is used as a comparison. In this study the
reference literature used as a comparison is the generic competency model of Spencer
and Spencer (1993) which has been used as a reference in various previous studies
(Siswanto and Andriani, 2009; Wu, 2009; Ryan et al., 2012) and has definitions complete
competency and competency clusters. If there are found competency elements that have
not been included in the reference, it can be proposed to be added (Siswanto and
Andriani, 2009; Monang et al., 2016).
The results of this analysis were subsequently used as the basis for compiling the
proposed competency model for creative human resources on an SME scale. Next is to
conduct a preliminary study to confirm the relevance of competency elements with the
actual context through interviews with two samples of creative economic SMEs in the
city of Bandung. The preliminary study aims to ensure that the proposed competency
elements are valid and needed by the object of research in actual conditions
(Wickramasinghe and De Zoyza, 2009). The selection of two case studies is because it
can represent a sample of SMEs in the creative economic sector in Bandung, which has
been widely known and stands for more than 10 years. The sample selection criteria based
on brand recognition were used in the study of Azis et al. (2014) and year of
establishment were used in the Main and Ratnapuri study (2018). However, the
preliminary study was only conducted on two samples of SMEs due to time constraints
and data accessibility. While for the number of informants involved in each interviews
based on key informants in the company.
The city of Bandung was chosen as the location of the object of research because
the city is known as one of the creative cities (United Nations Educational, Scientific and
Cultural Organization, 2018) and became the center of creative economic development
in Indonesia (Maryunani and Mirzanti, 2014). The selection of the city of Bandung as the
location of the center for creative economic development in Indonesia based on several
things, such as the center of the creative community is developing (Maryunani and
Mirzanti, 2014), the number of higher education institutions in the field of famous
technology and arts, such as Bandung Institute of Technology (ITB), Padjadjaran
University (UNPAD), etc. (Aritenang, 2012 ; Maryunani and Mirzanti, 2014; Prayudi et
al., 2017), proximity to the capital city of Jakarta (Aritenang, 2012), the most significant
number of e-commerce users, the highest number of creative economy exports (Central
Bureau of Statistics, 2017).
IV. RESULTS AND DISCUSSIONS
A search of the three databases (i.e., Web of Science, Scopus and Google Scholar)
resulted in 42 articles, 39 articles and 63 articles, respectively. Upon screening the results
for relevant article titles, only 8 articles from WoS, 8 articles from Scopus and 11 articles
from Google Scholar remained. After further analysis, it was discovered that five articles
had the same title and that two articles were reduced because they were not obtained. Six
more articles were eliminated because they do not concern the relevant context, and upon
further screening, four more articles were removed because they do not contain the
necessary list of competencies. Thus, the database search resulted in 10 articles that meet
the given criteria. The article selection process is presented in Figure 1.
Figure 1
Flow process of the article selection
Initial search result
Web of Science : 42 articles Scopus : 39 articles Google Scholar : 63 articles
Title screening
Web of Science : 8 articles Scopus : 8 articles Google Scholar : 11 articles
Duplicate and accesed check result

20 articles
Creative economy context screening

14 articles
Result based on content (competency list and definition)

10 articles
The search found 10 articles that discuss the competency model within the creative
industry. Each of the 10 articles was evaluated based on the criteria described in the
methodology section. From the evaluation, it can be seen that the majority of the literature
employs a psychological approach (6 of 10) in developing a competency model within
the creative industry. However, the other approaches, the educational approach (Oakley,
2008, Bridgstock, 2011; Trisno and Sary, 2011) and the organizational approach
(Kamprath and Mietzner, 2015), were also used. The majority of the evaluated research
utilised empirical studies (8 out of 10) to identify a list of competency requirements for
each of the research objects. In the empirical study conducted, five studies used objects
within the creative economy’s business sector, such as culinary (Hu, 2010; Muizu and
Hilmiana, 2016), bamboo crafts (Lee et al., 2010), software (Aisha et al., 2016) and
various businesses (Mietzner and Kamprath, 2013; Kamprath and Mietzner, 2015). Other
empirical research, however, focused on in higher education and concerned student
objects (Trisno and Sary, 2011), graduates (Bridgstock, 2011) and professors and
academic staff in the art department (Li and Sun, 2016). The majority of the competency
models are specific to one position (6 of 10). The other studies are more general,
concerning professional workers (Mietzner and Kamprath, 2013; Kamprath and
Mietzner, 2015), creative professionals majoring in the arts (Li and Sun, 2016) and
professionals in the culinary sector (Hu, 2010). Furthermore, the majority of the
competency models found in previous studies did not align with organizational strategy,
because the competency models were developed using the psychological and educational
approaches, which focus on the job context. The results of the evaluation are displayed
in Table 2.
Table 2
Research of competency model in creative economy context
Oakley (2008) has identified the outcomes that need to be gained through an
education in the arts to establish a creative workforce in Australia. These outcomes
include: academic knowledge, increased creativity, the formation of certain attitudes and
skills (such as confidence and social acumen) and the ability to self-teach. Moreover, in
the digital era it is also important to be digitally literate. Such skills can be established
through formal and non-formal education. This list of competencies was obtained
through the study, so that in the evaluation Table 1 is grouped as conceptual with the
approach used is the educational approach.
The educational approach, employed in the Bridgstock (2011) study, was used to
identify necessary career-related skills for graduates in the creative industry sector. The
11 found competencies were divided into two groups, namely self-management and
career building. The self-management group deals with the ability to manage an internal
career, i.e., building and maintaining a positive self-image, changing and growing
throughout life, participating in lifelong learning and maintaining a work-life balance.
The career building group, on the other hand, refers to managing external career factors,
including finding and obtaining work, locating and using career information and making
career enhancing decisions.
Trisno and Sary (2011) have identified the competency needs for vocational
education in creative industries: communication skills (including negotiation skills,
language, creative thinking, decision making, problem solving, self-awareness, empathy
and interpersonal relationships) as well as technological skills (IT skills). The study
focused on governmental research and development institutions and vocational
institutions (three vocational schools and four vocational higher education institutions)
in Bandung, West Java. The resulting list of competencies can be used to curate a
creative-industry-focused curriculum.
Several studies were conducted in specific creative sub-sectors of the creative
industry, such as culinary (Hu, 2010; Muizu and Hilmiana, 2016), bamboo crafts (Lee et
al., 2010) and software (Aisha et al., 2016). In studies conducted on specific sectors, the
developed competency models include the specific skills required for each sector. For
example, Lee et al. (2010) have identified the competencies required for bamboo
craftsmen in Taiwan. In the proposed competency model, there are three competency
groups: cultural understanding, international trends understanding and technical skills of
handicraft making. This list of competencies was obtained from Delphi, involving 10
experts. The craft competency model includes the soft and hard competencies required
for bamboo craftsmen.
Hu (2010) has researched the culinary field to identify competencies within the
culinary industry using the Delphi approach. H found seven dimensions of competency:
creativity competency, aesthetic competency, cultural competency, product competency,
management competency, service competency and technological competency. Each
competency dimension consists of four to five critical elements, found using the ANP
method. Muizu and Hilmiana (2016) identified the competency profile of entrepreneurs
within the culinary field in Bandung. The study involved 50 SME entrepreneurs.
Competency was measured from the following five dimensions related to entrepreneurial
competencies: opportunity competencies, organising competencies, commitment
competencies, strategic competencies, and conceptual competencies. The results indicate
that three dimensions of competency need to be developed by culinary entrepreneurs:
organising competencies, strategic competencies and conceptual competencies.
Research on an entrepreneur’s competency within the creative industry sector was

also conducted by Aisha et al. (2016) on software entrepreneurs. The proposed
competency model includes both soft and hard competencies, similar to that proposed by
Lee et al. (2010), in accordance with the context of the software business. Three
competency groups were used: entrepreneurial competencies (ability to recognise
opportunities, environmental conditions and formulate strategies according to
organisational conditions), managerial competencies (ability to plan, manage and direct
resources in the organisation) and industrial context competencies (related to one’s
technical knowledge of the industry as well as the ability to use specific tools, procedures
and methods). The three competency groups comprise 17 competency elements. These
competencies were grouped based on the role that entrepreneurs undertake for the early
stages of business establishment (Aisha et al., 2016).
In addition to research conducted on a specific competency model, research
conducted on the more generic, “one-size-fits-all” competency model was also studied.
This model was employed in studies conducted by Mietzner and Kamprath (2013),
Kamprath and Mietzner (2015) and Li and Sun (2016). Mietzner and Kamprath (2013)
and Kamprath and Mietzner (2015) developed a competency model for professional
workers in the creative industries. However, these two studies use different approaches.
In the Mietzner and Kamprath study (2013), a psychological approach is used to identify
the competencies required by professional workers. Competency identification was
conducted qualitatively by involving 17 experts in the creative industries of various
sectors. The proposed competency model consists of three dimensions of competency:
the personal-social (related to soft skills for self-management and relationships), the
methodological (the ability to analyse and solve problems) and the professional (specific
skills or areas of expertise).
Kamprath and Meitzner (2015) employed an organisational approach, in which a
list of competencies is identified based on the organisation’s needs. In a competitive and
dynamic environment, resource management that aligns with the organisation’s needs is
key. The competencies of the workers can determine the organisation's strategy. The
proposed competency model consists of three groups: professional competencies (those
required to fulfil specific tasks in related industries), methodological competencies (the
ability to learn and use various methods) and personal-social competencies (the ability to
communicate and cooperate to meet the needs of the group). In the model, professional
competencies are those that concern the creativity, managerial ability and technological
knowledge required within the creative industry. The proposed competency model was
developed from the literature review on competency within the creative industry sector,
and was adapted to the organisation’s dynamic capabilities.
Li and Sun (2016) have developed a competency model for creative professionals
within a university setting, comprising of professors and academic support staff in the
Humanities. The research was conducted empirically using the behavioural event
interview method and a quantitative survey. The results indicate six dimensions of
competency: system ability (the planning and management system in the organisation),
strategic abilities (the organisation's short- and long-term plans and objectives), learning
ability (related to the learning process atmosphere) resource integration (including
resource management processes in the organisation), creative management (the ability to
transform ideas into products) and service consciousness (the technical skills required in
academic teaching).
Since the objective of the study is to design a competency model for creative
industry managers and workers at the SME level, the acquired list of competencies must
be appropriate within the SME context. As discussed in the methodology section, a list
of competencies obtained from the previous literature is then compared with references
to identifying relevant competency elements. If there are similarities in the use of
keywords it will be used in the proposed competency model. For example in the research
of Mietzner and Kamprath (2013), one of the competency elements used is “ability to
work in a team”, in the generic competency model of Spencer and Spencer (1993) it
similar with “Teamwork and cooperation”, so the competency element “teamwork” is
used in the proposed research. The results of the analysis between competencies used in
each previous study are presented in Table 3.
In dynamic environmental situations, model competencies should be developed
using an organisational approach. It is intended that the proposed competency model can
support the strategy and achievement of organisational goals (Dai and Liang, 2012).
According to Kates and Galbraith (2007), different organisational strategies require
different organisational designs. Indeed, strategy is a set of capabilities that need to be
managed well within the organisation to achieve strategic goals. Thus, strategy is key to
an organisation’s success.
Kates and Galbraith (2007) have proposed the Star Model, which can be used to
design the organisation. In order to achieve organisational strategies, an organisation
needs to identify the capabilities that differentiate it from others. From these capabilities,
the organisation needs to identify key roles (structure) and skill sets for each role
(people). Improved alignment between capabilities, structure and people reinforce the
desired actions and behaviours, which in turn, improve an organisation’s ability to
achieve its goals.
According to Mintzberg (1980), within the organisation there are at least five basic
roles: operating core, strategic apex, middle line, technostructure and staff support. The
operating core and supporting staff comprise employees within an organisation that
perform operational functions, both with regard to production and other supporting
functions. The middle line deals with managerial positions that bridge the strategic level
as well as the operational level. The technostructure concerns the support required to
adapt to environmental conditions. Finally, at the top is the strategic apex, which
composes and determines the direction and strategy of the organisation. Within the
context of SMEs, these five roles are also necessary, but in a simpler fashion. According
to Ahmad et al. (2010), in SMEs there are three important roles that are needed to run
and maintain business; these are the entrepreneurial role, the managerial role and the
technical role. The entrepreneurial role performs activities related to the organisation's
vision, mission and strategy; explores customer needs; identifies opportunities and
recognises environmental conditions. This role is in line with the strategic apex from
Mintzberg (1980). The managerial role is concerned with management scope and
management activities including planning, organising, directing and controlling.
Similarly, the technical role relates to technical activities and the use of specific methods
within the organisation. Technical roles are highly adapted to the context of the industrial
environment in which the organisation is located (Aisha et al., 2016). Thus, it can be seen
that each role requires different competencies.
Table 3
Competency identification from previous studies
Competency Reference Research ID
Competency 1 2 3 4 5 6 7 8 9 10
Model Spencer
and Spencer
(1993)
Achievement Orientation Achievement v v v v v v v v
orientation
Initiative Initiative v v v
Self Confidence Self-confidence v v v v v v
Flexibility Flexibility v v
Commitment Organizational v v v
commitment
Conceptual thinking Conceptual v v v
thinking
Analytical thinking Analytical thinking v v v v v
Relationship Building Relationship v v v v v v
building
Customer Service Orientation Customer service v v
orientation
Interpersonal Understanding Interpersonal v v
understanding
Leadership Team leadership v v
Teamwork Teamwork and v v v
cooperation
Decision Making v v v
Problem solving v v v
Seeking Opportunities v v
Learning Orientation v v v v
Innovation Management v v v v
Business functional v v v
Project Management v v v
Knowledge Management v v
Change Management v v v
Aesthetics v v
Cultural impact v v v v v
Language v v
Product knowledge v v
Cross sector knowledge v
Intellectual property v v
Technology v v v v v
Therefore, this study proposes using the following three categories of competency:
entrepreneurial, managerial and creative economy. The importance of industry-specific
competencies has also been emphasized by Mietzner and Kamprath (2013) and Kamprath
and Mietzner (2015). Based on the need for roles in SMEs, the proposed competency
model for managers and workers in the creative industry sector is presented in Figure 2.
Figure 2
Diagram of proposed competency model
Figure 2 shows the proposed competency model for creative economy SMEs in
the form of diagrams. The proposed competency model consists of three levels of
competency depth, as used in Hurd and McLean (2004). The first level consists of three
categories of competencies that are more general in context, i.e. entrepreneurial
competencies, managerial competencies and creative economy competencies. At the
second level, each category concerns 2-3 competency areas. A competency is more
specific than a competency category. The third level consists of more specific
competency elements within each competency area. In total, there are 28 competency
elements in three competency categories. Details of competency elements and proposed
definitions in the competency models of creative economy SMEs can be seen in Table 4.
The entrepreneurial competencies category deals with the ability to develop and
define strategies and to transform opportunities and ideas into innovation (Ahmad et al.,
2010; Aisha et al., 2016). This category consists of three competency areas: namely,
achievement, personal effectiveness and cognitive. The competency area of achievement
is defined as the ability to perform or act beyond predetermined targets and collect and
filter received information (Spencer and Spencer, 1993). Spencer and Spencer (1993)
have also defined personal effectiveness as the maturity of individuals in the face of
others to manage work and overcome pressures and difficulties presented within the
environment. The cognitive competency area includes the ability to understand
situations, tasks, problems and opportunities (Spencer and Spencer, 1993).
Table 4
Detail of proposed competency model for creative economy SMEs
The second category, managerial competencies, includes the routine operational

management skills (Aisha et al., 2016). There are three competency areas in this category
as well; these are: orientation to others, direction and control and business acumen.
Orientation to others relates to the ability to understand and meet the needs of others and
establish relationships or networks to achieve goals (Spencer and Spencer, 1993).
Direction and control is defined as the ability to direct, control, make decisions and
improve teamwork (Spencer and Spencer, 1993). Business acumen is the ability to
manage resources fairly and responsibly and manage processes to achieve organisational
goals (Hurd and McLean, 2004).
The third category concerns creative economy competencies. These competencies
are defined as the knowledge and skills required within specific sectors of creative
economy (Mietzner and Kamprath, 2013; Kamprath and Mietzner, 2015). There are two
competency areas included in this category: art and culture and industrial knowledge.
The art and culture competency is the ability to understanding and admire art and culture
(Hu, 2010). Industry knowledge, on the other hand, consists of specific knowledge
related to an organisation’s needs within the creative industry (Trisno and Sary, 2011).
The proposed competency model is also deemed necessary in line with dynamic
technological developments. In the context of the creative economy, technology becomes
commonplace and ubiquitous that can generate new creativity, forms of expression of
modern art, new business models (relating to digital markets places, consumer groups,
and distribution channels), new collaboration models, and the creation of a community
of creators and innovators virtually. The existence of the internet has revolutionized the
way of distribution and information exchange and collaboration so that it can be done
virtually and globally. In line with the industrial development leading to 4.0 industrial
revolution, several emerging technologies that can have an impact on creative economic
development include cloud computing, IoT (Internet of Things), 5G, big data analytics
(Abbasi, Vassilopoluo , and Stergioulas, 2017).
The existence of technology opens opportunities for the development of
innovations and creativity. Disruptive technologies that occur have an impact on future
changes in the workforce, such as different job profiles and different competency needs.
Different job profiles are a challenge to manage the recruitment, training, and talent
management process (Bach, 2017). In connection with these technological changes,
several competencies need to be possessed by the workforce in the future, such as social
intelligence, transdisciplinarity, cross-cultural competency, new media literacy, and
collaboration (Bach, 2017). These competency needs have been accommodated in the
proposal competency model, which is essential for creative economic workforce (both
managers and workers) to have several competencies specific to the creative economy,
namely language skills (accommodating global collaboration), cross-sector knowledge
(cross-sectoral understanding), technology (knowledge and understanding of the latest
technology), cultural understanding (understanding of culture), and product knowledge
(understanding of products produced). To ensure the proposed competency model is
relevant with the needs in the real situation, the preliminary study to confirm the proposed
competency model, is made to management in two samples of creative economy SMEs,
as shown in Table 5.
Table 5
Results of preliminary study with two samples of SME
Competency Competency Competency element SME 1* SME 2*
category area
Entrepreneurial Achievement Achievement Orientation AD AD
competencies Initiative ND AD
Seeking Opportunities AD AD
Personal Self Confidence AD AD
effectiveness Learning Orientation AD AD
Flexibility ND AD
Commitment AD AD
Cognitive Conceptual thinking AD AD
Analytical thinking AD AD
Problem solving AD AD
Managerial Orientation to Relationship Building AD AD
competencies Others Customer Service Orientation ND AD
Interpersonal Understanding ND AD
Directing and Decision Making AD AD
Controlling Leadership OM AD
Teamwork AD AD
Business Innovation Management OM AD
Acumen Business functional OM AD
Project Management ND AD
Knowledge Management OM AD
Change Management OM AD
Creative Art and Aesthetics ND ND
economy context Culture Cultural impact ND ND
competencies Language AD AD
Industrial Product knowledge ND AD
knowledge Cross sector knowledge ND ND
Intellectual property ND ND
Technology ND AD
*
AD = needed by all divisions; ND = needed by several divisions; OM = needed by management level only
The results of interviews for preliminary study in the field revealed that there are
some elements of competency that do not need to be possessed by all creative economic
workers, such as leadership, business functional, knowledge management, and change
management that only need to be owned by the management level. These findings
indicate that there are differences in the competency elements required for the position
of managers and workers. In the study of Sudirman et al. (2018), there are significant
differences between the level of importance of competence for managers and workers in
the nine competency elements, namely achievement orientation, concern for order,
information seeking, analytical thinking, relationship building, developing others, team
leadership, teamwork, and sense of humor. The profile of entrepreneurs in the creative
economy sector tends to be dominated by individuals who start a business by pursuing
certain hobbies, then decide to commercialize it (Barcelona Activa, 2011; Aisha et al.,
2016). Entrepreneurs have qualified technical skills, but have a lack of managerial skills,
so that for successful leaders in creative businesses need to develop managerial skills and
renew knowledge of their creative economy sector (Barcelona Activa, 2011). These
findings indicate that managerial competencies and creative economy competencies are
more important for managers so the competencies development can direct towards
strengthening the competency elements in this competency group.
The proposed model of competency of the creative economy SMEs is expected to
be a guide for business actors and the government in developing the competence of
creative economy HR. For businesses, the need for competency elements needed for
management positions can be used to create career paths. This need can fulfill by
providing training to workers who have the potential to enter managerial positions. As
for the government, the elements of competence needed by creative economy workers,
in general, can be a reference for providing related training to increase the capacity and
quality of creative human resources.
Research conducted still has limitations in terms of the competency model
validation developed. According to Spencer and Spencer (1993) to validate competency
models can be done by collecting Behavioral Event Interview data from samples that
meet superior and average performance criteria or do competency ranking determination
from samples with superior and average performance. Both of these methods are focused
on validating competency models in single jobs. Another approach that can be done to
validate competency models is to use quantitative methods to test the relationship
between competency and performance produced. This empirical approach can be done
by involving a large number of samples, according to the research variables (Suhairom
et al., 2014). Further research can be directed to conduct an empirical survey on SMEs
human resources to validate the proposed competency model.
V. CONCLUSIONS AND RECOMMENDATIONS
Based on the results of the literature study and preliminary study, it can be seen that there
are 28 competency elements for managers and workers within the creative economy
sector across three competency categories. The proposed competency model consists of
three levels and covers competency categories, competency areas and competency
elements.
From the literature review, several previous studies have proposed a competency
model for various jobs within the creative industry sector. Two of the evaluated studies
employed a more generic competency model for professional workers, regardless of
specific work. However, such a competency model does not consider the needs and
characteristics of the organization, especially within the context of SMEs. Thus, the
research regarding the use of competency models within the creative industry can be used
to explain the correlation between organizational strategy and the proposed competency
model.
As a continuation of the proposed model, it is necessary to develop a questionnaire
based on the operationalization of the variables in order to empirically validate the
competency model. The questionnaire should be distributed to managers and workers at
creative economy SMEs. The questionnaire contains several questions and should be
answered by the owners, managers and workers in creative economy SMEs, especially
within the fashion and software sectors. Subsequently, a factor analysis should be run to
validate the model and ensure that the competencies are grouped correctly. Furthermore,
there are opportunities to identify the differentiating competencies between management
and staff empirically, as well as to map the competencies across the organization to
ensure that the competency model aligns with the outlined organizational strategy.
The initial findings based on preliminary study indicate that managerial
competencies and creative economy competencies are more important for managers so
the competencies development can direct towards strengthening the competency
elements in this competency group. The proposed competency model can be used in
academic institutions (such as vocational education and higher education institutions)
within the scope of the creative economy sector, as a foundation for preparing graduates
in accordance with industry needs. Specifically, cultural and linguistic, as well as
technological and digital literacy skills need to be inserted into the curriculum, because
these competencies relate to those sought after within the creative economy. Meanwhile,
several competencies related to cognitive ability and achievement orientation can be
studied refers to the learning content according to the existing curriculum that has been
prepared. Soft competencies can be developed through project-based learning methods
that use cases from within the creative economy sector to improve teamwork ability,
leadership, decision making, interpersonal understanding and project management.
The proposed competency model can also be used by entrepreneurs and
government as a reference to develop and empower the capability of managers and
workers in creative economy SMEs. For businesses, the need for competency elements
needed for management positions can be used to create career paths. This need can fulfill
by providing training to workers who have the potential to enter managerial positions.
As for the government, the elements of competence needed by creative economy
workers, in general, can be a reference for providing related training to increase the
capacity and quality of creative human resources.
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INTERNATIONAL JOURNAL OF BUSINESS, 24(4), 2019 ISSN: 1083-4346

A Competency Model for SMEs in the Creative

Atya Nur Aishaa, Iman Sudirmanb, Joko Siswantoc

The creative economy becomes a source of sustainable economic growth based on

JEL Classifications: O15, O31, O53

Keywords: competency; competency model; manager and worker; creative and

that demonstrates the competencies required in a position, group of positions,

II. LITERATURE REVIEW

distribute or commercialize products, services and activities related to the region’s

effectively. According to Marelli et al. (2005), the competency model is a structured

IV. RESULTS AND DISCUSSIONS

Duplicate and accesed check result

Creative economy context screening

Result based on content (competency list and definition)

Research on an entrepreneur’s competency within the creative industry sector was

The second category, managerial competencies, includes the routine operational

V. CONCLUSIONS AND RECOMMENDATIONS

Simatupang, T.M., S. Rustiadi, and D.B.M. Situmorang, 2012, “Enhancing the

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