Optimization of Branding and Value Chain Mapping Using Artificial Intelligence for the Batik Village Clusters in Indonesia to Achieve Competitive Advantage

Abstract

This research investigates the role of artificial intelligence (AI) in optimizing branding and mapping value chains to strengthen the competitive advantage of Batik Village Clusters in Indonesia. Employing a quantitative approach, the study analyzes survey data from stakeholders in the batik industry, focusing on their perceptions of AI's impact on branding and value chain processes. The study reveals that AI has a significant positive impact on branding optimization (t-statistic = 29.249, p = 0.000) and value chain mapping (t-statistic = 15.066, p = 0.000). Additionally, both branding optimization (t-statistic = 8.621) and value chain mapping (t-statistic = 16.853) were found to positively affect the competitive advantage of batik clusters. These findings suggest that AI can enhance branding efforts, improve value chain efficiency, and elevate the competitive positioning of Batik Village Clusters. The study provides actionable recommendations for batik entrepreneurs and policymakers, emphasizing the need to incorporate AI technologies to improve global competitiveness and ensure long-term sustainability in the batik industry

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