Innovation and Well-Being in Indigenous Entrepreneurship in Indonesia: A Capability Approach

Medina Savira, Fikri Zul Fahmi and Adiwan Fahlan Aritenang

Journal of Human Development and Capabilities, 2025, vol. 26, issue 2, 177-198

Abstract: This study explores how innovation occurs in Indigenous entrepreneurship and its effects on the well-being of Indigenous communities in Indonesia, a country in the Global South. Previous research indicates that innovation can occur in Indigenous entrepreneurship. However, there is a lack of understanding about how innovation impacts the well-being of Indigenous communities, particularly at the individual level. The capability approach provides a valuable framework for addressing this issue, considering the unique characteristics of Indigenous communities. We conducted a qualitative comparative case study in the regions of Pringgasela and Lepo Lorun. Data was collected through in-depth interviews with community leaders and entrepreneurs from two different Indigenous communities with diverse social contexts and types of businesses. Our research shows that understanding how Indigenous entrepreneurs assess innovation helps identify their unique values in innovation efforts. These values are driven not only by economic profits but also by the preservation of cultural heritage. Cultural well-being is not just a desired outcome but also a mechanism that allows individuals to participate in collective learning and innovation endeavours.

Date: 2025
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DOI: 10.1080/19452829.2025.2456010

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