From Value Creation to Sustainability: Exploring the Mediating Effect of Acculturative Isolating Product Advantage in Iconic Textile Enterprises.

BACKGROUND

The sustainability of iconic textile enterprises depends on their ability to transform internal capabilities into enduring competitive advantage. Although value creation, product innovation, and creativity are recognized as key drivers of performance, limited empirical evidence explains how these capabilities translate into long-term sustainability in culturally embedded industries. This study examines the mediating role of acculturative isolating product advantage (AAC) in the Samarinda woven sarong industry, a traditional textile sector characterized by strong cultural identity and craftsmanship heritage.

METHODS

A quantitative design using Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed. Data were collected from 109 artisans and business owners in the Samarinda woven sarong industry, East Kalimantan. The measurement and structural models were assessed to test the direct and mediating relationships among value creation, product innovation, creativity, AAC, and business sustainability.

RESULTS

Product innovation and creativity have significant direct effects on business sustainability. Value creation does not directly influence sustainability but exerts a significant indirect effect through AAC. The results confirm that AAC plays a crucial mediating role, indicating that culturally embedded product uniqueness functions as an isolating mechanism that reduces imitation and strengthens long-term viability.

CONCLUSIONS

Sustainability in iconic textile enterprises is achieved not merely through generating value, but through transforming that value into culturally distinctive and difficult-to-imitate product advantages. This study extends the Resource-Based View within culturally embedded contexts and clarifies the pathway from value creation to sustainability.

RECOMMENDATIONS: Artisans should strategically manage creativity and innovation to reinforce culturally distinctive products, while policymakers should support innovation capacity, intergenerational knowledge transfer, and culturally based branding strategies. Future studies may adopt longitudinal and comparative approaches to further validate acculturative isolating mechanisms in traditional industries.