The Relationship Between Innovation Capacity And Company Perfor-mance of Creativity Industry In Indonesia
Riyandi Nur Sumawidjaja, Suryana, Amir Machmud, Eeng Ahman

Universitas Pendidikan Indonesia

Abstract

This research aims to know and analyze the relationship between innovation capacity and creative industry performance in Indonesia. This study is based on the contribution of the creative industry in the national economy. The study method uses quantitative method through causal explanatory survey research. Innovative capacity measurements include product innovation and process innovation, while company performance is measured through Financial Perspective, Customer Perspective, Internal Business Process Perspective and Learning and Growth Perspective. The population of study were 368 players of leather industry, leather goods and footwear in Bandung City Region West Java Indonesia, with sample size referring to slovin formula, sample size as much as 192 respondents. All research variables are measured by using Likert scale with data collection techniques through questionnaires on the perpetrators of SMEs. The data analysis model uses Structural Equation Modeling (SEM). The results show that Innovation Capacity has a significant influence on company performance. This study implies that to improve the performance of creative industry actors need to optimize the capacity to innovate through product innovation and process innovation by producing superior and innovative products as well as being the leader of process innovation using the latest technology.

Keywords: Entrepreneurial capability, Marketing capability, Networking capability, SMEs.

Topic: Strategic Management, Entrepreneurship and Contemporary Issues