Bridging Tradition and Market: Perceived Authenticity, Cultural Identity and Sustainable Heritage Development in Ethnic Minority Craft Commercialization

ABSTRACT This study examines the commercialization of ethnic group crafts, focusing on the textiles of Thailand's Tai Song Dam minority, to balance cultural heritage preservation with economic development. To address the tension between cultural authenticity and market demands, this research uses a mixed‐methods sequential design. An initial qualitative phase used in‐depth interviews and participant observation to establish the textiles' deep cultural significance and the complex identity negotiations within the community that shape active preservation. This informed a subsequent quantitative phase, which analysed consumer data using Partial Least Squares Structural Equation Modelling (PLS‐SEM). Results reveal that perceived authenticity strongly influences perceived value, particularly emotional value, which, in turn, drives purchase intention. Critically, the consumer's cultural identity moderates this relationship. The study concludes that the market success of ethnic group crafts hinges on effectively communicating their cultural narrative and navigating the ‘third space’ of negotiation, offering a sustainable path to community economic empowerment that encompasses economic, cultural and intergenerational dimensions.