CO-CREATION AND THE CREATIVE ECONOMY : REDEFINING PUBLIC SERVICE DELIVERY FOR INCLUSIVE INNOVATION
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Dessy Ruhati(1*)
Public Administration Doctoral Studies, Universitas Prof. Dr. Moestopo (Beragama)
-
Triyuni Soemartono(2)
Public Administration Doctoral Studies, Universitas Prof. Dr. Moestopo (Beragama)
-
Khasan Effendy(3)
Public Administration Doctoral Studies, Universitas Prof. Dr. Moestopo (Beragama)
-
T. Herry Rachmatsyah(4)
Public Administration Doctoral Studies, Universitas Prof. Dr. Moestopo (Beragama)
(*) Corresponding Author
Keywords:
Creative Economy, Co-creation, Public Service Innovation, Governance
Abstract
The creative economy has emerged as a dynamic engine of economic resilience and social innovation, especially in the aftermath of the COVID-19 pandemic. This article explores the interaction between co-creation and creative economic ecosystems, emphasizing how participatory governance models can enhance public service delivery and foster inclusive development. Drawing on mixed-methods research involving 450 creative enterprises and over 100 stakeholder interviews across Indonesia, Portugal, and Spain, the study investigates the enabling conditions for co-creation, namely digital literacy, institutional flexibility, and stakeholder engagement. Quantitative analysis using structural equation modeling highlights the mediating role of digital skills in enhancing business sustainability, while qualitative insights reveal barriers such as bureaucratic inertia and algorithmic governance. Case studies of creative kampongs in Bandung, innovation labs in Gipuzkoa, and hybrid tourism platforms in Lisbon demonstrate the transformative potential of collaborative service design. However, the research also cautions against superficial participation, showing that power asymmetries can undermine co-creation outcomes without institutional safeguards. The findings demonstrate the need for adaptive governance structures, integrated cultural impact indicators, and platform reforms to ensure equitable participation. This study promotes a paradigm shift towards relational and iterative governance that values local knowledge, encourages experimentation, and propels sustainable growth by integrating creative economy principles into public policy frameworks. This article contributes to contemporary debates on public innovation by proposing a co-creation framework grounded in cultural vitality, digital empowerment, and democratic inclusivity.
Keywords: Creative Economy; Co-creation; Public Service Innovation; Governance
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References
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https://doi.org/10.4324/9781003147688
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Buhalis, D., Lin, M. S., & Leung, D. (2023). Metaverse as a driver for customer experience and value co-creation: Implications for hospitality and tourism management and marketing. International Journal of Contemporary Hospitality Management, 35(2), 701–716. https://doi.org/10.1108/IJCHM-05-2022-0631
Carvalho, P., & Alves, H. (2023). Customer value co-creation in the hospitality and tourism industry: A systematic literature review. International Journal of Contemporary Hospitality Management, 35(1), 250–273. https://doi.org/10.1108/IJCHM-12-2021-1528
Cerisola, S., & Panzera, E. (2021). Cultural and creative cities and regional economic efficiency: Context conditions as catalyzers of cultural vibrancy and creative economy. Sustainability, 13(13), 1–17. https://doi.org/10.3390/su13137280
Chan, C.-S., Chang, T.-C., & Liu, Y. (2022). Investigating creative experiences and environmental perception of creative tourism: The case of PMQ (Police Married Quarters) in Hong Kong. Journal of China Tourism Research, 18(2), 1–20. https://doi.org/10.1080/19388160.2022.xxxxxx
Chiu, T. K. F., Meng, H., Chai, C.-S., King, I., Wong, S., & Yam, Y. (2022). Creation and evaluation of a pretertiary artificial intelligence (AI) curriculum. IEEE Transactions on Education, 65(1), 30–39. https://doi.org/10.1109/TE.2021.3085878
Creswell, J. W., & Clark, V. L. P. (2018). Designing and conducting mixed methods research (3rd ed.). Sage.
de Bernard, M., Comunian, R., & Gross, J. (2022). Cultural and creative ecosystems: A review of theories and methods, towards a new research agenda. Cultural Trends, 31(4), 1–23. https://doi.org/10.1080/09548963.2021.1980501
Donner, M., & de Vries, H. (2021). How to innovate business models for a circular bio-economy? Business Strategy and the Environment, 30(4), 1932–1947. https://doi.org/10.1002/bse.2725
Duffy, B. E., & Meisner, C. (2023). Platform governance at the margins: Social media creators’ experiences with algorithmic (in)visibility. Media, Culture & Society, 45(2), 1–18. https://doi.org/10.1177/01634437221111923
Duffy B.E., Pinch A., Sannon S., & Sawey M. (2021). The Nested Precarities of Creative Labor on Social Media. 7(2).
Edelmann, N., & Lameiras, M. (2025). Policy brief: Co-creation in the public sector: Challenges and lessons learned. UNU-EGOV.
https://unu.edu/egov/collection/policy-brief-co-creation-public-sector-challenges-and-lessons-learned
Edelmann, N., & Virkar, S. (2023). The Impact of Sustainability on Co-Creation of Digital Public Services. Administrative Sciences, 13(2), Article 2. https://doi.org/10.3390/admsci13020043
England, L. (2023). Crafting professionals: Entrepreneurial strategies for making a living through passionate work. Cultural Trends, 25(4), 1–15. https://doi.org/10.1080/09548963.2022.2030423
Fahmi, F. Z., Ramadhani, D., Dwicahyani, A. A., & Aritenang, A. F. (2021). Informality and the branding of creative places: The case of Suci screen-printing kampong in Bandung, Indonesia. Built Environment, 47(3), 1–15. https://doi.org/10.2148/benv.47.3.1
Flavián, C., Pérez-Rueda, A., Belanche, D., & Casaló, L. V. (2022). Intention to use analytical artificial intelligence (AI) in services – The effect of technology readiness and awareness. Journal of Service Management, 33(2), 293–320. https://doi.org/10.1108/JOSM-10-2020-0378
Franco, M., & Rodrigues, M. (2022). Indicators to measure the performance of sustainable urban entrepreneurship: An empirical case study applied to Portuguese cities and towns. International Journal of Entrepreneurial Behavior & Research, 11(1), 1–20. https://doi.org/10.1108/IJEBR-01-2021-0067
Gee, K., & and Yeow, P. (2021). A hard day’s night: Building sustainable careers for musicians. Cultural Trends, 30(4), 338–354.
https://doi.org/10.1080/09548963.2021.1941776
Grindell, C., Coates, E., Croot, L., & O’Cathain, A. (2022). The use of co-production, co-design and co-creation to mobilise knowledge in the management of health conditions: A systematic review. BMC Health Services Research, 22(1), 877. https://doi.org/10.1186/s12913-022-08079-y
Halvorsrud, K., Kucharska, J., Adlington, K., Rüdell, K., Brown Hajdukova, E., Nazroo, J., Haarmans, M., Rhodes, J., & Bhui, K. (2021). Identifying evidence of effectiveness in the co-creation of research: A systematic review and meta-analysis of the international healthcare literature. Journal of Public Health, 43(1), 197–208. https://doi.org/10.1093/pubmed/fdz126
Kačerauskas, T., Streimikiene, D., & Bartkute, R. (2021). Environmental sustainability of creative economy: Evidence from a Lithuanian case study. Sustainability, 13(17), 1–15. https://doi.org/10.3390/su13179834
Kingsley, S., Sinha, P., Wang, C., Eslami, M., & Hong, J. I. (2022). “Give everybody [...] a little bit more equity”: Content creator perspectives and responses to the algorithmic demonetization of content associated with disadvantaged groups. Proceedings of the ACM on Human-Computer Interaction, 6(CSCW2), 1–28. https://doi.org/10.1145/3555550
Lalicic, L., & Weismayer, C. (2021). Consumers’ reasons and perceived value co-creation of using artificial intelligence-enabled travel service agents. Journal of Business Research, 129, 891–901. https://doi.org/10.1016/j.jbusres.2020.11.005
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Manioudis, M., & Angelakis, A. (2023). Creative economy and sustainable regional growth: Lessons from the implementation of entrepreneurial discovery process at the regional level. Sustainability (Switzerland), 15(9), 7681. https://doi.org/10.3390/su15097681
Mele, C., Russo Spena, T., Kaartemo, V., & Marzullo, M. L. (2021). Smart nudging: How cognitive technologies enable choice architectures for value co-creation. Journal of Business Research, 129, 949–960.
https://doi.org/10.1016/j.jbusres.2020.09.004
Menezes, R. Á. G., & de Sousa Batista, P. C. (2024). Public policies for the cultural and religious-based creative industries: The Brazilian case. Creative Industries Journal, 17(1), 142–156. https://doi.org/10.1080/17510694.2022.2077518
Mogstad, A. K. (2017). Co-creation in public service innovation. NTNU. https://www.ntnu.edu/documents/139799/1279149990/Design+Theory+Article+final.pdf
Montalto, V., Alberti, V., Panella, F., & Sacco, P. L. (2023). Are cultural cities always creative? An empirical analysis of culture-led development in 190 European cities. Habitat International, 132, 102739.
https://doi.org/10.1016/j.habitatint.2022.102739
Mylonas, G., Kalogeras, A., Kalogeras, G., Anagnostopoulos, C., Alexakos, C., & Munoz, L. (2021). Digital twins from smart manufacturing to smart cities: A survey. IEEE Access, 9, 143222–143249. https://doi.org/10.1109/ACCESS.2021.3120843
Nadeem, W., Tan, T. M., Tajvidi, M., & Hajli, N. (2021). How do experiences enhance brand relationship performance and value co-creation in social commerce? The role of consumer engagement and self brand-connection. Technological Forecasting and Social Change, 171, 120952.
https://doi.org/10.1016/j.techfore.2021.120952
Pranita D., Sarjana S., & Musthofa B.M. (2022). Mediating Role of Sustainable Tourism and Creative Economy to Improve Community Wellbeing. African Journal of Hospitality, Tourism and Leisure, 11(2), 781.0-794.0.
https://doi.org/10.46222/ajhtl.19770720.257
Pratt, A. C. (2022). Toward circular governance in the culture and creative economy. Environmental Innovation and Societal Transitions, 29, 1–13. https://doi.org/10.1016/j.eist.2022.01.004
Rosyadi, S., Kusuma, A. S., Fitrah, E., Zayzda, N. A., & Pimoljinda, T. (2022). Barriers of public policy faced by SMEs of creative economy in Indonesia. International Journal of Public Sector Management, 35(2), 123–141.
https://doi.org/10.1108/IJPSM-01-2021-0003
Saldaña, J. (2024). Developing theory through qualitative inquiry. SAGE Publications.
Schiavone, F., Mancini, D., Leone, D., & Lavorato, D. (2021). Digital business models and ridesharing for value co-creation in healthcare: A multi-stakeholder ecosystem analysis. Technological Forecasting and Social Change, 166, 120647. https://doi.org/10.1016/j.techfore.2021.120647
Sipahutar, N. Y. P., Silitonga, M. C. A., Fadhila, T. W., Putri, R. E., & Itu, Y. (2022). Co-Creation of Public Service Innovation for Marginalized Groups in The Underdeveloped Regions. JURNAL ILMU SOSIAL, 21(2), 201–222.
https://doi.org/10.14710/jis.21.2.2022.201-222
Sjödin, D., Parida, V., Palmié, M., & Wincent, J. (2021). How AI capabilities enable business model innovation: Scaling AI through co-evolutionary processes and feedback loops. Journal of Business Research, 134, 574–587. https://doi.org/10.1016/j.jbusres.2021.05.009
Smętkowski, M., Celińska-Janowicz, D., & Wojnar, K. (2021). Location patterns of advanced producer services and creative industries in Warsaw and metropolitan Warsaw region. Cities.
https://doi.org/10.1016/j.cities.2020.102937
Tajvidi, M., Wang, Y., Hajli, N., & Love, P. E. D. (2021). Brand value co-creation in social commerce: The role of interactivity, social support, and relationship quality. Computers in Human Behavior, 115, 105238.
https://doi.org/10.1016/j.chb.2017.11.006
Tashakkori, A., & Teddlie, C. (2003). Handbook of mixed methods in social and behavioral research. Sage.
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Published
2025-11-26
How to Cite
Ruhati, D., Soemartono, T., Effendy, K., & Rachmatsyah, T. H. (2025). CO-CREATION AND THE CREATIVE ECONOMY : REDEFINING PUBLIC SERVICE DELIVERY FOR INCLUSIVE INNOVATION. Journal of Management : Small and Medium Enterprises (SMEs), 18(3), 2195-2211. https://doi.org/10.35508/jom.v18i3.26084
Section
Articles
