Purpose: This study examines how strategic philanthropy and digital communication are affecting the sustainability of traditional craft villages—particularly when local communities play an active role. It explores how these two factors work together to support the long-term survival of craft villages, and how the level of community engagement can either enhance or diminish the impact of philanthropic efforts. The goal is to offer practical insights for policymakers, NGOs, and craft village leaders who are trying to find the right balance between keeping cultural traditions alive and building economic resilience. Method: This study used a quantitative research approach, collecting data through a structured survey distributed to 400 individuals, including artisans, local leaders, tourists, and nonprofit workers from across Southeast Asia. The survey asked respondents to rate their views on strategic philanthropy, digital communication strategies, community involvement, and sustainability outcomes, which were measured using a 5-point Likert scale. To analyze the data, SPSS was used for basic statistics, Cronbach’s alpha was employed to check reliability, exploratory factor analysis (EFA) helped uncover underlying patterns, and linear regression was used to test the hypotheses. The SPSS Process Macro was additionally used to examine how community engagement might influence the link between strategic philanthropy and sustainability. Findings: The results supported all the hypotheses, with strong relationships between the key factors: strategic philanthropy (0.657), digital communication strategies (0.702), and a significant moderating effect of community engagement (0.495) on the connection between philanthropy and sustainability. Community engagement helped boost the positive impact of philanthropy on the sustainability of craft villages. These findings suggest that local community involvement enhances philanthropic efforts, making a greater impact both culturally and economically. Originality/Value: This research makes a unique contribution by highlighting the moderating role of community engagement, going beyond traditional linear models. By combining the Triple Bottom Line and Stakeholder Theory, the study provides deeper insights into how partnerships can help balance cultural preservation with economic sustainability. The findings not only enhance our academic understanding but also provide practical strategies for creating inclusive, community-driven solutions within traditional craft industries.
Han et al. (Thu,) studied this question.