JURNAL KAJIAN BALI
Hlm.
01AAi Journal of Bali Studies p-ISSN 2088-4443 # e-ISSN 2580-0698 Volume 15.
Number 01.
April 2025 Strategic Collaborations and Diversification:
Pathways to Sustainable Growth in BaliAos Tourism Village and Business Ecosystems Ni Made Ary Widiastini1* .
I Ketut Sida Arsa2 .
Made Aristia Prayudi3 .
Ni Luh Putu Agustini Karta4 Ganesha University of Education.
Indonesia The Indonesian Institute of The Arts Bali.
Indonesia Triatma Mulya University.
Indonesia DOI: https://doi.
org/10.
24843/JKB.
Abstract: Tourism villages contribute significantly to BaliAos economic development by promoting rural entrepreneurship.
However, the sector faces challenges such as low product quality, ineffective marketing, and competition from low-cost imported This study explores collaboration and diversification strategies to ensure the economic sustainability of BaliAos village tourism and rural businesses.
Data were collected through observations, questionnaires, and in-depth interviews, then analyzed using the SWOT method to assess strengths, weaknesses, opportunities, and threats.
The results highlight the importance of community involvement, partnership networks, creative product development, effective marketing, and longterm business management.
Findings from four villages indicate that collaboration with local industries and sustainable tourism initiatives enhances community income.
To support sustainable tourism and improve community welfare, it is recommended that the government and stakeholders strengthen the promotion of local products and maximize the cultural and economic potential of villages.
Keywords: collaboration.
tourism village.
local business Introduction he development of tourist villages has shown a significant upward trend over the years, particularly in terms of quantity.
In 2023, 37.
26% of villages in Bali had been developed into tourist villages (Bali Satu Data, 2023.
, distributed across various regencies.
Buleleng Regency accounted for the highest proportion, with tourist villages comprising 58% of the total villages in Corresponding authorAos email: ary.
widiastini@undiksha.
Submitted: 21 August 2024.
Accepted: 27 February 2025.
Published: April 2025 Copyright A 2025 by the author .
This article is published by Jurnal Kajian Bali (Journal of Bali Studie.
University of Udayana.
Bali.
Indonesia, under a Creative Commons Attribution 4.
0 International License .
ttp://creativecommons.
org/licenses/by/4.
0/).
http://ojs.
id/index.
php/kajianbali Pp.
146Ai172 Strategic Collaborations and Diversification: Pathways to Sustainable Growth .
the area.
The growth of tourist villages also has a positive impact on the local economic sector, especially micro-enterprises, which continue to grow every As of 2023, a total of 389,562 micro-enterprises have developed in Bali (Bali Satu Data, 2023.
, driven in part by the growth of village-based tourism activities (Table .
Table 1.
Data on the Number of Villages.
Tourist Villages, and MSMEs in Bali Number Percentage Number Number Number of Tourism Regency of Subof of Micro Tourism Village districts Villages Enterprises Villages Development 1 Jembrana 2 Tabanan 3 Badung 4 Gianyar 5 Klungkung 6 Bangli 7 Karangasem 8 Buleleng 9 Denpasar City Total Sources: Bali Satu Data .
3a, 2023b, 2023.
The development of tourist villages in Bali is closely related to the growth of micro-enterprises, although the impact varies from regency to regency.
Gianyar Regency has undergone a rapid transformation in tourist villages, with 32 villages .
%) designated as tourist villages and 46,914 micro-enterprise units, supported by the arts, crafts, and creative economy sectors.
GianyarAos success shows how tourist villages can strengthen the local business ecosystem.
In contrast.
Klungkung Regency, despite having 18 tourist villages .
%), only recorded 17,295 micro-enterprise units, indicating that the development of tourist villages has not sufficiently driven the MSME sector.
Accessibility and infrastructure challenges are still obstacles, especially in optimizing the potential of Songket weaving and marine tourism.
Karangasem Regency, with 26 tourist villages .
%) and 69,835 microenterprise units, shows a balance between the growth of tourist villages and MSMEs, especially in the craft and cultural tourism sector.
Meanwhile.
Buleleng Regency with the largest number of tourist villages .
still faces challenges in integrating tourism and MSMEs, as seen from the number of microJURNAL KAJIAN BALI Vol.
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These four regions were chosen for this study because they represent various patterns of tourism village development in BaliAiranging from highly developed areas like Gianyar to those still facing challenges, such as Klungkung and Buleleng.
This article aims to foster collaboration and diversify MSME products in Bali to support sustainable economic growth in the tourism sector.
MSMEs, or Micro.
Small, and Medium Enterprises, play a crucial role in economic growth, job creation and poverty reduction.
Studies show that increasing financial access and sustainable innovation can strengthen the role of MSMEs in BaliAos tourism ecosystem (Rusliana et al.
, 2023.
Swati & Ruby, 2.
In addition, tourism village awards and community-based tourism (CBT) approaches have been proven to foster local business development and generate direct economic benefits for rural communities (Krismawintari & Utama, 2019.
Rosalina et al.
However, the impact of MSMEs on tourism villages varies across regions, with challenges such as infrastructure, accessibility, and market limitations still requiring attention to optimize regional economic growth.
To achieve sustainable economic growth, this study explores optimal strategies in building partnerships between local businesses and the tourism sector through strategic collaboration and product diversification.
The presence of MSMEs in tourism villages has great potential in creating authentic travel experiences and increasing the competitiveness of local businesses.
By analyzing the impact of these strategies on business resilience and revenue generation, this study provides new insights into the effectiveness of diversification and collaboration in strengthening BaliAos tourism ecosystem.
These findings are in line with previous studies that highlight the importance of digitalization, cultural integration, and resource management in improving the sustainability of tourism villages and strengthening the role of MSMEs (Parwata et al.
, 2022.
Rosalina et al.
, 2024.
Sidik et al.
, 2.
Thus, this study provides concrete recommendations for stakeholders to develop innovative strategies that enhance synergies between the tourism sector and local businesses, fostering inclusive and sustainable economic growth in Bali.
Literature Review Previous studies on innovation and strategic collaboration in small and medium enterprises (SME.
within rural tourism have identified persistent challenges alongside potential opportunities for growth and development.
While tourism development has progressed, significant barriers to product innovation persist, including limited access to technology, inadequate skilled human resources, and insufficient government support (Najib et al.
, 2020.
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York & Venkataraman, 2.
These constraints prevent local entrepreneurs from fully capitalizing on tourism potential by limiting their ability to develop unique and marketable products.
Although previous research has emphasized the importance of product innovation for local businesses, a comprehensive analysis of strategic collaboration in addressing these barriers remains limited.
Bikse et al.
and Najib and Kiminami .
highlight stakeholder engagement as a key driver of innovation, yet they do not deeply explore how collaboration across government, academia, and local businesses can systematically address these Similarly, studies by Sathish and Rajamohan .
and Weinstein and Cahill .
stress the importance of diversification in responding to shifting market demands but lack insights into how strategic collaboration can accelerate this process, particularly in resource-constrained rural settings.
Research by Weber et al.
and Leyn et al.
indicates that effective cross-sector social collaborationAidriven by strong leadership and reciprocal exchangeAiis crucial in achieving shared goals and generating social However, the application of such approaches in Balinese tourism villages remains under-explored, presenting a notable gap in the literature.
Rosalina et al.
emphasized that the Indonesian Tourism Village Award (ADWI) drives BaliAos economic growth through collaboration, digitalization, and sustainability, thereby empowering MSMEs in rural areas.
While the potential of collaboration and innovation is well acknowledged, empirical evidence on their integration to enhance product diversification and sustainability in tourism-related SMEs is still insufficient.
This study examines the role of cross-sector collaboration in fostering product diversification and enhancing the performance of SMEs in Balinese tourism villages.
Through empirical evidence, it provides insights into SME strategies for adapting to market dynamics, ensuring long-term sustainability and competitiveness.
Additionally, it highlights the significance of crosector partnerships in resource-constrained environments, addressing gaps in technology, skills, and market responsiveness.
The findings contribute to a deeper understanding of strategic collaboration and diversification as key drivers of sustainable growth within BaliAos tourism village and business Method and Theory This research adopts a qualitative method using a phenomenological approach to comprehensively investigate the synergistic impact of collaboration and diversification on local firms, thereby enhancing the growth of tourism JURNAL KAJIAN BALI Vol.
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146Ai172 The data regarding local businesses in tourism villages was systematically gathered through questionnaires, in-depth interviews, informal observations, and comprehensive literature reviews (Creswell, 2.
The research areas consisted of four tourism villages, namely Sidetapa (Bulelen.
Celuk (Gianya.
Gelgel (Klungkun.
, and Tenganan (Karangase.
The sample includes key stakeholders such as local business owners, government and industry representatives, tourists, as well as other SMEs operating in Buleleng.
Gianyar.
Klungkung, and Karangasem regencies.
In addition, academic input was gathered from 15 public and private universities through Google Forms, ensuring a diverse and comprehensive set of perspectives.
This study focuses on four tourist villagesAiSidetapa.
Celuk.
Gelgel, and TengananAiselected for their unique characteristics and historical significance.
Gelgel Village, famous for its Endek and Songket crafts was designated as a tourist village based on Klungkung Regent Regulation No.
8/2021 and No.
2/2017.
Celuk Village, a center for jewelry crafts for more than a century (Putu, 2.
, was only later recognized in 2020 with Gianyar Regent Regulation No.
762/E-02/HK/2020.
Tenganan Village, an ancient cultural site, was designated through Karangasem Regent Decree No.
658/HK/2014.
Meanwhile.
Sidetapa Village, once an area of AUAUpolitical conflict, is now starting to attract tourists.
Using descriptive and SWOT analysis, this study examines the internal and external factors that influence innovation and collaboration in local This research is grounded in the theory of collaboration and innovation, which examines how partnerships among local businesses, academics, government, and other stakeholders foster product innovation and strengthen competitiveness.
Results and Discussion 1 Local Product Potential in Four Tourism Villages in Bali Villages in Bali have great potential in tourism based on culture and local wisdom, where local culture and customs can be packaged as tourist attractions that support the economy.
The designation of tourist villages is based on the year they were officially recognized as tourism villages through the RegentAos Decree (Surat Keputusan Bupat.
, although many had already functioned as tourist destinations prior to the decree.
The observed villages and their details are presented in Table 2.
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Table 2.
Details of Villages Observed Village Regency Population Gelgel Klungkung Celuk Gianyar Tenganan Karangasem 4627 Sidetapa Buleleng DesignaIconic Iconic At- Category tion Year Product traction as Tourist Village Endek Historical Developand value and ing Songket the center of the Balinese Silver Celuk Sil- Novice and gold ver Class Tenun Weaving.
DevelGrings- ancient MekarekareAy/ geret pandan Bamboo Bale Ga- Novice jah Sekaa Roras Tumpang Salu.
Source: Research, 2024 The four tourist villages picked as the research locations have iconic products that not only reflect its rich local culture, but have also become a high-value commodity in recent years.
Interviews with micro-entrepreneurs in these four villages revealed that the average monthly visitor count was 120 in Sidetapa, 3,000 in Celuk, 600 in Gelgel, and 2,400 in Tenganan.
Visits in Sidetapa and Gelgel were dominated by individuals, while Celuk and Tenganan received more groups.
Through diversification and innovation, these products make a significant contribution to village economic growth and create sustainable entrepreneurial opportunities.
Sidetapa in Buleleng is famous for its woven basket products which were originally used for household use and traditional ceremonies.
Along with the increasing demand for ethnic-inspired design in guesthouses, restaurants, and hotels, craftsmen in Sidetapa have begun to develop JURNAL KAJIAN BALI Vol.
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This diversification opens up opportunities for collaboration with interior designers and the hospitality industry, thereby increasing the competitiveness of local products and encouraging the growth of a community-based creative economy.
Figure 1.
Iconic Products of Sidetapa Village (Photo: Komang Krishna Darmawa.
As BaliAos hub for silver craftsmanship.
Celuk continues to innovate in jewelry design and production techniques.
Signature motifs such as Liman Paya.
Buah Gonda.
Bunbunan, and Jejawan that have been registered for Geographical Indication (GI) as the distinguishing characteristics of Celuk jewelry products (Figure .
In response to the growing market demand for one-of-a-kind jewelry pieces that blend traditional and modern elements, craftsmen in Celuk have begun developing new manufacturing techniques, such as filigree work and the incorporation of natural stones.
Partnerships with the fashion industry and e-commerce platforms have also expanded the marketing reach of Celuk silver products to the international market.
Figure 2.
Iconic Products of Celuk Village (Photo: I Ketut Sida Ars.
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Tenganan has established itself as the premier producer of Gringsing woven cloth, one of IndonesiaAos most expensive textiles, crafted using the intricate double ikat technique (Figure .
This product not only has high artistic value, but has also received protection through Geographical Indication (GI).
Unlike other tourist villages that continuously innovate in motifs and manufacturing techniques.
Tenganan preserves the authenticity of its production process and the traditional values passed down through This consistency enhances the exclusivity of Gringsing woven cloth in the market, making it highly sought after by collectors and premium textile enthusiasts both domestically and internationally.
Figure 3.
Iconic Products of Tenganan Village (Photo: Komang Krishna Darmawa.
With its historical ties to the Balinese kingdom.
Gelgel Village remains a central hub for the production of Songket and Endek woven fabrics (Figure .
, which are widely used in traditional ceremonies and royal events across Bali.
Woven fabrics from Gelgel remain in demand due to their traditional manufacturing techniques and patterns.
While preserving its cultural heritage.
Gelgel craftsmen have also started expanding market opportunities by adapting motifs and colors to suit modern fashion trends, producing both traditional attire and casual clothing made from Endek fabric.
Figure 4.
Iconic Products of Gelgel Village (Photo: Putu Andhika Putr.
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Despite a decline in the regeneration of their successors, communities continue the production of high-demand products for local and global markets.
Geographical Indication (GI) certification also adds protection for the exclusivity of such traditional craft.
However, challenges like limited access to technology, a lack of skilled labor, and high production costs due to imported raw materials hinder innovation (Najib & Kiminami.
York & Venkataraman, 2.
While stakeholder engagement fosters innovation (Bikse et al.
, 2016.
Najib & Kiminami, 2.
, the role of systematic collaboration between government, academia, and businesses in accelerating product diversification remains underexplored (Sathish & Rajamohan, 2012.
Weinstein & Cahill, 2.
Leyn et al.
and Weber et al.
highlight that cross-sector collaboration, strong leadership, and reciprocal exchanges drive social value, yet its application in BaliAos rural tourism remains limited.
This study explores how strategic collaboration fosters product diversification and strengthens SME competitiveness, providing insights into overcoming resource constraints through partnerships among government, academia, and businesses to ensure long-term sustainability.
Despite challenges in artisan regeneration, home industries in these four villages have remained resilient and continue to meet market demand.
They still provide job opportunities for local residents, with an average daily wage of around IDR100,000, aligning with the Regional Minimum Wage (UMR).
The unique value of the products, both in production techniques and designs, makes these villages still attractive to tourists who come not only to learn about the culture, but also to buy products directly from the artisans.
Upto the present day, domestic and foreign tourists still visit these villages, contributing to the local economy and maintaining the sustainability of the culture-based craft industry in Bali.
A thorough examination of the four tourism villages revealed that local products play a crucial role in driving their growth and development.
The traditional products of Brem Buah and bamboo weaving in Sidetapa have been successfully integrated into edu-tourism, generating significant economic benefits for the local community (Widiastini et al.
, 2.
The integration of Tenun Bambu product sales with educational tourism in Sidetapa produced significant economic advantages for the local community.
Tourists not only purchased the products but also paid for the opportunity to learn about their production process.
This initiative helped preserve local culture and traditions by ensuring the transfer of skills, such as bamboo weaving, across generations while also increasing recognition on a broader scale.
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(Widiastini et al.
, 2.
The use of social media marketing has also broadened the market presence of these local items, extending the reach to both national and international markets.
In Celuk, a number of artisans have emerged as key players in the production of silver and gold jewelry, making them highly desirable among tourists (Arsa & Widiastini, 2.
Jewelry products such as rings, bracelets, and necklaces attract visitors here.
This trend underscores the significant contribution of the community to the local economy and demonstrates CelukAos ability to accommodate diverse tourist preferences.
The jewelry, akin to a cultural artifact, offers visitors a unique cultural experience while simultaneously empowering the local community by promoting economic independence.
The success of these artisans highlights the importance of creating customized and culturally distinctive products, reinforcing the notion that indigenous crafts remain integral to BaliAos appeal as a global tourism destination.
Gelgel and Tenganan are renowned for exquisite woven fabrics, attracting fashion enthusiasts.
These items boost local economic revenue while enhancing the cultural distinctiveness of the villages.
Traditional textiles not only strengthen the local economy by attracting tourists and customers but also contribute to the cultural identity of the communities.
The elaborate designs and its high-quality craftsmanship have been passed down from generation to Tourists visiting these communities frequently purchase them as gifts or fashion items, ensuring a steady income for local artisans.
This demand not only sustains traditional weaving practices but also promotes cultural Additionally, the global interest in sustainable and ethically produced apparel has fueled the popularity of these handcrafted fabrics, aligning with the growing trend of responsible travel.
The success of the textile industries in Gelgel and Tenganan highlights the significant potential of local products to drive economic development and cultural preservation in tourism villages.
2 Impact of Collaboration and Local Product Diversification The success of tourism village development depends on strategic collaboration between local businesses, communities, and industry In the context of the four villages studied, collaboration has had a positive impact in maintaining the local economy (Susanti & Hardina, 2.
Sidetapa, collaboration between weavers and interior designers has facilitated product diversification for guesthouses, restaurants, and hotels.
Support from local partners such as with training and digital marketing has benefitted them (Arsa et al.
, 2.
In Celuk, collaboration between silver craftsmen, designers, and exporters allows for innovation, and protection through Geographical Indications JURNAL KAJIAN BALI Vol.
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The supply of silver from Sumatra.
Kalimantan, and Java also requires coordination with suppliers (Siagian & Cahyono, 2.
As Gelgel weavers supply the Balinese royalty, a steady demand for Endek and Songket weaving is secured.
Meanwhile, demand for traditional cloth from the fashion industry has pushed them to innovate to meet global market trends (Purwaningsih et al.
In Tenganan, the sustainability of the highly valued Gringsing weaving depends on partnerships with textile collectors and cultural institutions that promote its unique double ikat technique to an exclusive market (Sari et al.
, 2.
Domestic and international tourists continue to visit these villages, reinforcing the craft industryAos competitiveness and sustaining the local economy (Rahmiyati & Rahim, 2.
Additionally, collaboration with the government and academics has facilitated access to wider markets, secured business permits and product certifications, and provided promotional support through local and international exhibitions (Mahendrayani & Suryawan, 2.
Diversification and collaboration have strengthened economic resilience in BaliAos tourist villages.
Product diversification helps businesses adapt to market demand, as seen in GelgelAos expansion into international fashion (Dewi et al.
Collaboration with academics and the government provides training and marketing support, enhancing business growth.
Cross-sector partnerships boost income and stability through cultural festivals and exhibitions that increase global market exposure (Wijayanti, 2.
Strengthened networks with exporters improve efficiency, reducing costs and raising profitability (Purnomo et al.
, 2.
3 Factors for Collaboration and Local Product Diversification Success in Tourism Villages in Bali The success of collaboration and product diversification in Balinese tourist villages depends on several key factors.
Sufficient capital (Puspitaningrum & Lubis, 2018.
Raharjo & Rinawati, 2.
, active community participation (Dewi et al.
, 2.
, effective communication, and clear regulations (Al Fajri, 2019.
Tyas et al.
, 2.
are essential for sustainable development.
Local businesses provide raw materials and production, while community involvement, including local and foreign workers, supports the supply chain (Mittal et al.
, 2017.
Pech et al.
, 2.
The long-term sustainability of tourist villages relies on strong local support, ensuring integration between businesses and community-based Local entrepreneurs must have the skills and competencies needed to manage their businesses effectively.
They must also ensure their products are in demand with tourists.
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injections can be facilitated through strategic partnerships that focus on product development and marketing training (Abdi et al.
, 2021.
Waruwu et al.
, 2.
Infrastructure development can also increase business in the region (Bangsawan et al.
, 2021.
Susanti & Hardina, 2.
Local community support is essential in fostering a collaborative environment where all parties benefit.
The success of tourism village development depends on this synergy, leveraging each participantAos skills to create a sustainable and thriving destination.
Product diversification drives the growth of BaliAos tourism villages.
Local entrepreneurs must adapt to market trends (Arsa et al.
, 2021.
Siagian & Cahyono, 2021.
Widiastini et al.
, 2.
, implement strong branding (Purwaningsih et al.
, 2020.
Sari et al.
, 2.
, and collaborate with stakeholders for effective marketing (Widiastini, 2012.
Mahendrayani & Suryawan, 2.
Expanding market access through networking and promotional strategies is crucial for competitiveness.
Additionally, technology integration improves efficiency and quality (Hardilawati, 2020.
Rahmiyati & Rahim, 2.
Strengthening partnerships between government, academia, and businesses enhances economic stability and innovation in BaliAos culture-based tourism sector.
Transparent communication between local entrepreneurs and tourism stakeholders is essential to foster effective partnerships.
Expectations, goals, and development plans must align with their needs in mind (Noor & Zulfiani, 2021.
Wijayanti, 2.
Efficient collaboration depends on a clear division of roles, regulations, obligations, and rights for all parties involved.
The implementation of strict and unambiguous regulations reduces potential obstacles and encourages stronger partnerships between local business owners and tourism stakeholders (Mulyani et al.
, 2021.
Purnomo et al.
, 2.
Entrepreneurs must continue to improve their skills in order to provide high-quality products and services that can compete in the global market.
Collaboration and product diversification not only provide substantial economic and social benefits for tourist villages, but also increase the competitiveness of BaliAos tourism industry as a whole.
Effective collaboration of government, academics, and businesses can further improve economic stability and innovation in the cultural tourism sector in Bali.
4 The Role of Government.
Academics, and Entrepreneurs in Inspiring Collaboration and Diversification of Local Products in Tourism Villages in Bali The establishment of tourist villages in Bali under the regentAos regulation has led to the growth of more than one hundred such villages, each developing through strategic collaboration with various stakeholders.
In Sidetapa, support from the government and academics has driven the diversification of woven JURNAL KAJIAN BALI Vol.
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This shift has increased the productsAo market value and competitiveness, allowing artisans to reach a wider audience.
Celuk, renowned for its silver jewelry craftsmanship, benefits from technical assistance and design training involving academics and the private sector.
This support enables artisans to refine traditional techniques, adopt innovative manufacturing processes, such as filigree and stone inlays, and expand their reach into international markets.
The growing demand for customized and culturally distinctive jewelry has further strengthened CelukAos position in BaliAos creative economy.
In Gelgel, financial assistance and private sector mentoring have played a crucial role in sustaining artisansAo livelihoods.
Despite having to import raw materials like yarn, these weavers maintain high-quality production, ensuring their fabrics meet both traditional ceremonial and modern fashion demands.
The integration of contemporary designs into traditional weaving patterns has allowed Gelgel artisans to access broader markets while preserving their Meanwhile.
Tenganan has successfully maintained the exclusivity of its Gringsing woven fabric, one of IndonesiaAos rarest textiles, through Geographical Indications (GI) protection.
This ensures authenticity and prevents mass production, preserving the centuries-old weaving technique.
Additionally, academic institutions have contributed to promoting the cultural significance of Gringsing weaving, elevating its value in both domestic and international markets.
By safeguarding traditional knowledge and leveraging cross-sector collaboration.
Tenganan continues to attract collectors and highend textile enthusiasts, strengthening its economic sustainability.
The Sapta Pesona (Seven Charm.
principle serves as the foundation for creating memorable tourist experiences by ensuring destinations are safe, orderly, clean, refreshing, beautiful, hospitable, and memorable (Nurjaya & Kanca, 2020.
Rustiarini & Sujana, 2.
Research findings show that the rising demand for local products from rural communities opens opportunities for expanding domestic and international markets (Purwanto, 2021.
Rahatmawati et al.
, 2.
Collaboration between the government and local partners, including financial assistance and technical training, has been shown to increase production capacity and product competitiveness (Aasak, 2022.
Wakkee et al.
Additionally, the involvement of academics plays a crucial role in driving innovation and improving product quality.
With this collaborative approach, tourism villages not only strengthen the local economy but also build a safe, well-organized, clean, and culturally rich business ecosystem that is globally This study involves a survey of 97 academics from 15 universities in Bali to analyze their role in the development of local tourism-supporting products JURNAL KAJIAN BALI Vol.
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in tourist villages.
The survey aimed to evaluate academicsAo contributions to innovation and the competitiveness of local businesses in the four studied villages of Sidetapa.
Celuk.
Gelgel, and Tenganan.
The study also aimed to identify the strengths, weaknesses, opportunities, and threats (SWOT) affecting these villages through targeted analysis.
The results indicated that all internal academic factors, such as expertise and resources, were classified as strengths, with no weaknesses identified.
The greatest opportunities stemmed from external factors, including rising market demand and supportive policies.
This analysis highlights the vital role of academics in enhancing local product quality and ensuring the sustainability of tourist villages while addressing external These findings provide strategic insights to strengthen collaboration between academics, government, and local communities in maximizing the potential of tourist villages.
Based on the data, no weaknesses were found in the academic indicators analyzed, as all internal factors were categorized as strengths, as reflected in Tables 3 and 4.
Table 3.
Internal Indicators as Strengths and Weaknesses Internal Mark 1 Research ability, expertise, and knowledge in relevant fields.
2 Level of collaboration, networking and partnership between academic institutions and industry stakeholders.
3 Provision of intellectual property rights support and guidance.
4 Fostering an entrepreneurial culture in academia.
Information Strength Strength Strength Strength Based on the provided data, it seems that no threats were identified for academic involvement, as all external factors are perceived as opportunities rather than threats.
Table 4.
External Indicators as Opportunities and Threats External Mark 1 Market demand and trends.
2 Technological factors, namely technological advances, availability and accessibility of digital 3 Socio-cultural factors.
4 economic factor 5 Government support and incentives.
6 Policy and legal factors.
7 Environmental factor.
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Internal Factor Analysis Summary (IFAS) Internal Weight Mark 1 Research ability, expertise, and knowledge in 3,72 relevant fields.
2 Level of collaboration, networking and 3,61 partnership between academic institutions and industry stakeholders.
3 Provision of intellectual property rights support and guidance.
4 Fostering an entrepreneurial culture in academia.
0,25
Table 6.
External Factor Analysis Summary (EFAS) External 1 Market demand and trends.
2 Technological factors, namely technological advances, availability and accessibility of digital 3 Socio-cultural factors.
4 economic factor 5 Government support and incentives.
6 Policy and legal factors.
7 Environmental factor.
Total
0,97
0,91
0,83
Weight
Mark
Total
3,48
0,48
0,50
Academics play a significant role in enhancing local products in tourism villages through various community service initiatives.
IFAS and EFAS in Tables 5 and 6 focused on the role played by academics in the development of tourism villages, specifically in business and local products.
In addition, further analysis was carried out to determine the score for each indicator.
This was aimed to obtain a summary of both internal and external indicators.
The scores of the external factors for the role of academics in the development of tourism villages, specifically in local businesses and products, is shown in Table However, through community service programs, academics benefited the This was influenced by several external factors, namely market needs, technology, community socio-culture, economy, environmental and government support and policies.
For instance, active participation involved empowering local business groups, demonstrating how academic support can uplift community-driven enterprises.
For over three years, assistance was provided for the development of Bali Aga villages (Widiastini et al.
, 2020.
Widiastini et al.
, 2.
, improving the quality and quantity of tourism products.
Similarly, support for two villages in Tabanan Regency enhanced product packaging to boost tourism activities (Karta et al.
, 2.
In Indonesia, lecturers are required to conduct community service programs annually, further contributing to local business development.
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Piwowar-Sulej and PodsiadCy .
highlighted that academic publications emphasize public education in innovation, while innovation, business management, and technology adoption have been reported to drive business In Bali, several community service initiatives have supported local entrepreneurs, reinforcing their role in sustainable development.
The development of tourism villages requires active collaboration between the government, academics, and local entrepreneurs to create synergy in improving the quality of products and the competitive advantage of local culturebased tourism.
The government plays an important role through providing financial support, infrastructure development, and policies that facilitate the growth of tourism villages.
For example, the Anugerah Desa Wisata Indonesia (ADWI) award has encouraged village development through cross-sector collaboration and digitalization (Rosalina et al.
, 2.
Academics contribute with market research, product innovation, and community empowerment to improve the quality and diversification of local tourism products (Juliarta et al.
Krismawintari & Utama, 2.
These interrelated commitments symbolize a unified drive towards general development, with a focus on local culture, including strengthening the backbone of the tourism industry.
Table 7 shows the matrix of the roles of the government, academics, and local entrepreneurs in supporting local business products and the development of tourism villages.
The results of the study show that local entrepreneurs in tourist villages are at the forefront of producing products that reflect local identity, such as bamboo crafts.
Songket, and traditional culinary, which contribute significantly to tourist attractions (Karta et al.
, 2021.
Widiastini et al.
, 2.
These findings emphasize the importance of an innovative approach involving various stakeholders to create a sustainable and competitive tourism ecosystem, as exemplified in Jatiluwih Village (Krismawintari & Utama, 2.
This joint effort enriches village communities through innovation, increases destination appeal, and strengthens local economic resilience in facing challenges, including the impact of the COVID-19 pandemic (Juliarta et al.
, 2023.
Purwanto, 2.
The existence of such traditional village craftsmen plays a pivotal role in supporting the local economy and preserving culture.
However, they face challenges such as a saturated market and increasing competition.
Research shows that support through formal training and collaboration can improve the quality and competitiveness of products (Krismawintari & Utama, 2019.
Rosalina et al.
, 2.
These villages have succeeded in creating new economic opportunities by targeting niche markets looking for authentic and high-quality products, such as jewelry, bamboo products, and traditional textiles.
In addition to increasing income, this strategy strengthens cultural heritage and encourages JURNAL KAJIAN BALI Vol.
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146Ai172 sustainable economic growth in tourist areas (Karta et al.
, 2021.
Widiastini et , 2.
Cross-sector collaboration also fosters innovation, empowers local entrepreneurs, and creates positive impacts for the wider community (Juliarta et , 2.
This support builds the competitiveness of tourist villages at national and international levels, making local products a unique identity.
Table 7.
Matrix of Roles of Government.
Academics and Entrepreneurs in Supporting Local Business Products and Tourism Village Development Roles 1 Implement regulations and policies that support the Oo development of local businesses in tourism villages.
2 Providing capital assistance and training to local Oo Oo entrepreneurs in tourism villages.
3 Initiating collaboration between entrepreneurs.
Oo Oo Oo communities and local government agencies.
4 Develop tourism supporting infrastructure and facilities in tourism villages .
or example academician do Oo Oo community service.
5 Perform promotion and marketing of local business Oo Oo products in tourism villages both home and abroad.
6 Introducing and promoting local products in these Oo Oo Oo villages to tourists.
7 Manufacturing local products that have added value, in Oo Oo accordance with market demand.
8 Offer support and cooperation to local entrepreneurs in Oo Oo Oo tourism villages.
9 Increasing awareness of the importance of developing tourism villages to improve welfare through local Oo Oo Oo 10 Establish cooperation with local entrepreneurs in tourism Oo Oo Oo villages to expand market reach.
11 Develop unique local products.
Oo Oo Oo 12 Maintain the quality and authenticity of local products Oo 13 Develop a local product distribution network in order to Oo reach a wider market.
14 Provide support to local entrepreneurs in tourism villages to improve the quality and quantity of Oo Oo Oo Notes: G (Governmen.
A (Academic.
E (Entrepreneur.
5 Challenges in Collaboration and Diversification of Local Products in Tourism Villages, and Efforts to Overcome These Difficulties The villages of Sidetapa.
Celuk.
Gelgel, and Tenganan have their own unique characteristics and challenges.
In Sidetapa, the integration of traditional JURNAL KAJIAN BALI Vol.
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goods such as Brem Buah and Tenun Bambu in educational tourism boosts the local economy.
Celuk and its jewelry faces challenges of market saturation, competition, and regulation, thus requiring formal support for income stabilization and better tourism experiences.
Gelgel and Tenganan, with their traditional woven fabrics, play an important role in preserving culture while boosting the local economy.
Strategies are needed to overcome limitations in market access, product diversification, and sustainability.
The SWOT analysis matrix in Table 8 identifies challenges and opportunities related to collaboration and local product diversification in tourism communities, perceived by academic, government and local business Although the survey results on internal and external factors regarding the role of academics in developing local products for tourism did not indicate any weaknesses or threats, interviews with five respondentsAiselected based on a Google Forms survey on MSME collaboration and product diversification in BaliAos tourist villagesAirevealed several challenges.
These findings were further examined through a SWOT analysis to gain a more comprehensive Table 8.
SWOT Analysis Matrix for Academic.
Government and Local Entrepreneur Strengths Opportunities A Unique cultural heritage A Increasing demand for local and A Natural resources sustainable tourism A Skilled local workforce A Growing trend of experiential A Established network of suppliers and distributors.
A Increasing digitalization A Government support programs Weakness Threats A Lack of capital, limited access to A Competition from larger A Low brand awareness A Changing consumer preferences A Inadequate infrastructure A Environmental degradation A Inadequate management and economic instability marketing skills A Regulatory hurdles.
The SWOT analysis matrix is AUAUused to identify opportunities and challenges in cooperation and diversification of local products in tourist villages, as well as formulate relevant strategies.
The Strength-Opportunity (SO) strategy capitalizes on local advantages, such as cultural heritage and handicrafts, to meet tourist demand for culinary products and souvenirs (Healy, 1994.
Nisha & Khan, 2016.
Soukhathammavong & Park, 2.
By offering authentic experiences, this approach enhances tourist visits.
Meanwhile, the Strength-Threat (ST) strategy JURNAL KAJIAN BALI Vol.
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146Ai172 mitigates market challenges by leveraging skilled local labor to provide quality services at competitive costs (Hartanto et al.
, 2.
Additionally, mentoring and training programs focused on improving product quality and quantity have proven effective (Chia & Liang, 2016.
Sriyana & Sari, 2.
To address weaknesses, the Weakness-Opportunities (WO) Strategy proposes digital marketing and branding initiatives, in line with the trend of experience-based tourism, to increase market appeal and local product recognition (Hung & Khlystov, 2011.
Kotler & Gertner, 2002.
Yamagishi et , 2.
Meanwhile, the Weakness-Threats (WT) Strategy emphasizes the importance of investing in technology and infrastructure to reduce market risks and increase competitiveness (Chibelushi & Costello, 2009.
Klein & Todesco.
Collaboration with stakeholders is also needed to help local businesses face regulatory challenges.
The research results support that a collaborative and innovative approach based on SWOT analysis can strengthen the competitiveness of tourism villages, create new economic opportunities, and encourage local economic For example, support from the government and academics in Gelgel and Tenganan Villages has helped improve the quality of local crafts, such as Songket weaving, which is now attracting attention from national and international markets (Juliarta et al.
, 2023.
Rosalina et al.
, 2024.
Widiastini et al.
This strategy not only preserves cultural heritage but also encourages sustainable economic growth for local communities.
WO (Weakness-Opportunitie.
strategies focus on addressing internal weaknesses, such as limited brand recognition, by leveraging external opportunities such as the experiential travel trend.
Implementing strategic marketing and branding initiatives helps increase visibility and competitiveness, turning weaknesses into strengths to drive growth (Hung & Khlystov, 2011.
Kotler & Gertner, 2.
In this context, investing in expanding markets and promoting local culture-based tourism experiences is a key step.
In contrast.
WT (Weakness-Threat.
strategies are defensive, aiming to protect the organization from external threats, such as regulation or market competition, while addressing internal weaknesses such as lack of technology (Chibelushi & Costello, 2009.
Klein & Todesco, 2.
These efforts involve infrastructure investments and collaboration with stakeholders to stabilize the business and reduce risks.
Conclusion Local entrepreneurs in BaliAos tourist villagesAiSidetapa.
Celuk.
Gelgel, and TengananAihave made significant contributions to tourism development by leveraging local natural resources, cultural heritage, skills, and strategic While these four villages continue to preserve their unique iconic JURNAL KAJIAN BALI Vol.
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products, setting them apart from other tourism villages, they also actively foster strategic partnerships with the government, academia, and businesses to enhance economic stability and drive innovation in BaliAos culture-based tourism sector.
Sidetapa has successfully diversified its woven products beyond traditional baskets to include interior decorations used in guesthouses, restaurants, and Celuk, renowned for its silver craftsmanship, has introduced innovations in jewelry design and production techniques, now widely marketed through collaborations with designers and digital platforms.
Gelgel sustains the heritage of Endek and Songket weaving with support from private sector initiatives and academic institutions, particularly in design training and global marketing Tenganan continues to preserve Gringsing Weaving, which has received Geographical Indication (GI) protection, enhancing its value and competitiveness in the exclusive market.
These four villages exemplify how community involvement, product innovation, digital marketing, and strategic networks can strengthen the competitiveness and sustainability of the tourist village economy.
Despite progress, there are still several challenges, such as limited raw materials and labor in Celuk.
GelgelAos dependence on imported yarn, and the decreasing number of craftsmen in Tenganan and Sidetapa.
Local entrepreneurs have adapted through innovation, digital technology, and external support to overcome these obstacles, resulting in successful product diversification.
In addition, community involvement in production and marketing and the application of sustainability principles have strengthened the competitiveness of tourist villages.
This study recommends further exploration of the application of technology to improve global competitiveness and compare collaboration patterns between tourist villages in Bali and similar destinations in other areas.
Additional research is needed to measure the long-term impact of these strategic collaborations on the economic, social, and environmental sustainability of tourist
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