Integrating Indigenous Cultural Values to Optimize Hard and Soft Skills for Enhancing Entrepreneurial Innovation in Hospitality

The tourism and hospitality industry in Bali faces increasing demands for innovation driven by cultural uniqueness and human capital quality. While hard and soft skills are crucial in enhancing entrepreneurial innovation, the integration of indigenous cultural values into workforce development remains underexplored. This study aims to examine how the integration of Balinese cultural values contributes to the optimization of hard and soft skills in promoting entrepreneurial innovation in the hospitality sector. An explanatory mixed-methods design was employed. Quantitative data were collected through structured questionnaires distributed to 200 hospitality employees, vocational graduates, and entrepreneurs across Bali. Data were analyzed using Structural Equation Modeling with Partial Least Squares (SEM-PLS) to assess the direct and indirect relationships among variables. Complementary qualitative data were gathered through semi-structured interviews with 8 key informants including hotel managers, cultural practitioners, and hospitality trainers. The qualitative data were interpreted using thematic content analysis to provide contextual depth. The findings reveal that indigenous cultural values significantly moderate the relationship between soft skills and entrepreneurial innovation. Hard skills influence innovation more effectively when culturally contextualized. The integration of local wisdom enhances team collaboration, adaptive decision-making, and customer-oriented service models. Integrating indigenous cultural values with skills development presents a viable strategy for fostering innovation in hospitality entrepreneurship. This approach may offer a culturally sustainable model for workforce innovation in other tourism-driven regions.