THE IMPACT OF A UNIVERSITY DEVELOPMENT PROJECT ON THE SUSTAINABILITY OF KRAJOOD HANDICRAFT COMMUNITY ENTERPRISES

Abstract

This research addresses the issues of repetitive Krajood product designs and market saturation, which have led to declining community income and a lack of sustainability. The objectives of this study were to: 1) Evaluate the impact of a university development project on the livelihood assets of Krajood handicraft community enterprises; 2) Analyze the socio-economic factors determining the sustainability of community enterprises following the intervention; and 3) Synthesize lessons learned to propose guidelines for promoting sustainability in future university development projects. This study employed a mixed-methods research design. Quantitatively, data recording forms and questionnaires were administered to a purposive sample of 100 participants, consisting of enterprise members, experts, and students. Data analysis involved frequency, percentage, mean, standard deviation, Modified Priority Needs Index (PNI _Modified), and effect size. Qualitatively, in-depth interviews and focus group discussions were conducted with three groups of key informants: community leaders, experts, and project working group members. Data were analyzed using content analysis. The findings revealed that despite facing market saturation, the implementation of project-based learning yielded the most significant positive impact on “Human Capital.”This was evidenced by 100 participants (accounting for 125% of the target) and the creation of three innovative product designs, reflecting a large effect size. However, a state of “Imbalanced Capital Development” was identified. The critical barrier was a lack of “Social Capital,” a structural issue hindering collaboration and commercial investment. This directly impacted “Financial Capital,” rendering the community unable to form groups to address high production costs and a lack of bargaining power. In conclusion, while the development successfully elevated skills and innovation,it is insufficient to ensure sustainability without the concurrent development of social and economic capital. A key lesson is that universities must shift their role from “Technology Transferor” to “Social Facilitator” to build strong cooperation mechanisms, as product innovation alone cannot guarantee economic sustainability. Recommendations are that the government should adjust indicators from focusing on product quantity to emphasizing group strength, and universities should prioritize learning processes that foster social capital to serve as community immunity before introducing production factors.