The Linkage of Co-Creation and Soft Innovation towards Firm Performance (a survey at Indonesian hijab fashion creative industry)
Eriana Astuty (a*), Agus Rahayu (b), Disman (b), Lili Adi Wibowo (b)

(a) Business & Management Faculty, Universitas Widyatama, Jalan Cikutra 204 A, Bandung
(*) eriana.astuty[at]widyatama.ac.id, eriana.astuty[at]student.upi.edu
(b) Doctoral Program of Management, UPI, Jalan Setiabudhi 229, Bandung

Abstract

The performance of creative industries can be triggered by soft innovation with putting forward the aesthetic in the form of sense appeal or intellectual. Co-creation as new paradigm of product development could improve the firm performance at last two decades. This gap was underlying to examine more deeply about the interrelation between them at the creative industry in Indonesia. This research uses survey method. Questionnaire is disseminated on 30 creative business of hijab fashion in Bandung. Research confirms that co-creation has not shown significant influencing to creative industry performance, because the business actors are still not familiar with this new paradigm. Nevertheless, co-creation could improve soft innovation directly. This confirms that soft innovation could be a good mediator for co-creation raising the firm performance. Furthermore, obtained that partnerships with the private sector related to the successful new products, which later can boost sales growth as an indicator of firm performance.

Keywords: Co-Creation, Soft Innovation, Firm Performance, Industry Creative

Topic: Innovation, IT, Operations and Supply Chain Management