Effect of Inventiveness and Novelty to Competitive Advantages and Performance of Creative Industry in Tangerang

摘要

Creative industry (CI) is the most important thing in the global economy. Companies, which operate in the creative sector, represent the most innovative businesses. This research is intended to consider the influence of inventiveness, novelty and competitive advantage on the result of the creative industry. There were 110 creative industry SMEs in the handicraft sector. The sampling technique used was purposive sampling based on considering the creative industry criteria for the handicraft sector which had been operating for at least 3 years. Data collection was done by distributing questionnaires to respondents selected as members of the sample. Data obtained will be analyzed by SEM using Partial Least Square (PLS). The result of the research showed that innovation has a good and powerful effect on what makes an institution or individual better than the other rival. Creativity has a definite and substantial result on competitive advantage. Innovation directly does not have a significant effect on company achievements. Creativity directly has a positive and significant effect on company performance. Competitive advantage directly has a definite and significant effect on the performance of the company. Creativity has an indirect impact on performance mediated by competitive advantage. Therefore, craft products must be able to increase creativity and innovation to remain superior in competition and achieve optimal business performance.