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Community Empowerment Utilizing Open Innovation as a Sustainable Village-Owned Enterprise Strategy in Indonesia: A Systematic Literature Review

Author

Listed:
  • Erwin Harinurdin

    (Department of Knowledge Social Welfare, Faculty of Social and Political Sciences, University of Indonesia, Kota Depok 16424, Indonesia)

  • Bambang Shergi Laksmono

    (Department of Knowledge Social Welfare, Faculty of Social and Political Sciences, University of Indonesia, Kota Depok 16424, Indonesia)

  • Retno Kusumastuti

    (Department of Business Administration, Faculty of Administrative Science, University of Indonesia, Kota Depok 16424, Indonesia)

  • Karin Amelia Safitri

    (Department of Administration and Applied Business, Vocational Education Program, Universitas Indonesia, Kota Depok 16424, Indonesia)

Abstract

This study aims to understand community empowerment by utilizing open innovation through Village-Owned Enterprises (VOE) to enhance sustainable public welfare. To achieve both economic and social missions, VOE must develop the ability to engage in open innovation by leveraging external knowledge sources, both inbound and outbound. This research employs a literature review method, analyzing previous studies indexed in the Scopus Database and processed using the VOSviewer software. The findings indicate that open innovation, which utilizes inbound external knowledge sources such as markets, knowledge, open resources, and cooperative networks, has already been adopted. However, the utilization of knowledge has not yet been fully optimized as a foundation for producing goods and services due to limitations in human resources. Similarly, outbound open innovation derived from technology has been implemented, although the utilization of patents remains suboptimal. This study recommends that village-owned business entities evaluate their operations, particularly in the utilization of knowledge and commercialization to ensure sustainability. Furthermore, this research contributes to the discussion on open innovation by emphasizing that leveraging market-driven knowledge, openness, cooperation, and technology should be a major focus for VOE in the context of business activities, where increased public participation plays a crucial role in sustainable economic development.

Suggested Citation

  • Erwin Harinurdin & Bambang Shergi Laksmono & Retno Kusumastuti & Karin Amelia Safitri, 2025. "Community Empowerment Utilizing Open Innovation as a Sustainable Village-Owned Enterprise Strategy in Indonesia: A Systematic Literature Review," Sustainability, MDPI, vol. 17(8), pages 1-30, April.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:8:p:3394-:d:1632371
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    References listed on IDEAS

    as
    1. Soelchan Arief Effendi & Eko Ganis Sukoharsono & Lilik Purwanti & Rosidi, 2023. "Building Partnership or Competition: Village Business Sustainability in Indonesia," Sustainability, MDPI, vol. 15(18), pages 1-16, September.
    2. Nobuya Fukugawa, 2006. "Determining Factors in Innovation of Small Firm Networks: A case of Cross Industry Groups in Japan," Small Business Economics, Springer, vol. 27(2), pages 181-193, October.
    3. Shahrukh Khalid & Muhammad Shakil Ahmad & T. Ramayah & Jinsoo Hwang & Insin Kim, 2019. "Community Empowerment and Sustainable Tourism Development: The Mediating Role of Community Support for Tourism," Sustainability, MDPI, vol. 11(22), pages 1-14, November.
    4. Vinit Parida & Mats Westerberg & Johan Frishammar, 2012. "Inbound Open Innovation Activities in High‐Tech SMEs: The Impact on Innovation Performance," Journal of Small Business Management, Taylor & Francis Journals, vol. 50(2), pages 283-309, April.
    5. Shimelis Beyene & Teshome H. Regassa & Belaineh Legesse & Martha Mamo & Tsegaye Tadesse, 2018. "Empowerment and Tech Adoption: Introducing the Treadle Pump Triggers Farmers’ Innovation in Eastern Ethiopia," Sustainability, MDPI, vol. 10(9), pages 1-12, September.
    6. Wawan Dhewanto & Sudrajati Ratnaningtyas & Anggraeni Permatasari & Grisna Anggadwita & Eko Agus Prasetio, 2020. "Rural entrepreneurship: towards collaborative participative models for economic sustainability," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(1), pages 705-724, September.
    7. David Doloreux & Richard Shearmur & Régis Guillaume, 2015. "Collaboration, Transferable and Non-transferable Knowledge, and Innovation: A Study of a Cool Climate Wine Industry (Canada)," Growth and Change, Wiley Blackwell, vol. 46(1), pages 16-37, March.
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