Jember Fashion Carnaval (JFC) and MSMEs: An Exploratory Study for Developing a Knowledge Spillover Model

Abstract

Despite its international reputation as one of Indonesia's leading creative events, the economic benefits generated by the Jember Fashion Carnaval (JFC) have not been widely distributed among local Micro, Small, and Medium Enterprises (MSMEs), and poverty remains a persistent challenge in Jember Regency. This study explores how knowledge created within the JFC ecosystem is transferred to local MSMEs and examines the institutional factors influencing this process. Using an exploratory qualitative approach, data were collected through in-depth interviews with JFC management, local MSMEs, and relevant stakeholders. The findings reveal that JFC functions as a significant source of creative knowledge and actively develops fashion talent through structured collaboration and capacity-building programs. However, comparable mechanisms for MSMEs are largely absent, resulting in knowledge spillover that is informal, relationship-based, and unevenly distributed. The study identifies the absence of an institutional bridging mechanism connecting JFC as a knowledge generator with MSMEs as knowledge recipients. This finding extends the Knowledge Spillover Theory of Entrepreneurship by emphasizing that effective knowledge diffusion within creative ecosystems requires institutional arrangements that facilitate collaboration beyond core creative communities. The study proposes a conceptual foundation for developing a structured knowledge spillover model to promote MSME integration and inclusive regional economic development.