Bridging Local Wisdom and Generative AI through University-Industry Co-Creation: A Pathway to Green Innovation and Sustainable Growth of Indonesian MSMEs

Authors

  • Ika Novaliana Author
  • Prasetya Tri Mahendra Universitas PGRI Mpu Sindok Author
  • Muhammad Ali Lutfi Universitas PGRI Mpu Sindok Author
  • Suwandi Universitas PGRI Mpu Sindok Author

DOI:

https://doi.org/10.29407/t58caq48

Keywords:

: Local wisdom;, Generative AI;, University-industry co-creation, ; Green innovation, ; Sustainable MSME growth.

Abstract

Integrating local wisdom with generative artificial intelligence (GenAI) offers new opportunities for MSMEs to strengthen innovation while preserving local identity and advancing sustainability. This study examines how local wisdom integration and GenAI capability influence green innovation and sustainable MSME growth through university-industry co-creation. A quantitative cross-sectional design is proposed using survey data from Indonesian MSME owners and managers, analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM). The study is expected to show that local wisdom integration and GenAI capability positively enhance university and industry co-creation, which subsequently promotes green innovation and sustainable business growth. Green innovation is also expected to mediate the relationship between co-creation and sustainable growth. The proposed framework highlights the strategic value of combining indigenous knowledge, GenAI, and university-industry collaboration to support innovation-driven and sustainable MSME development.

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Published

2026-09-26

How to Cite

Bridging Local Wisdom and Generative AI through University-Industry Co-Creation: A Pathway to Green Innovation and Sustainable Growth of Indonesian MSMEs. (2026). Panji International Conference on Sport, Education, Management and Economics, 1(01), 474-481. https://doi.org/10.29407/t58caq48