Innovation Capability Model and Co-Creation as an Improvement of SMEs Performance

Abstract

The creative industries of Small and Medium Enterprises (SMEs) in the field of guitar manufacturing, currently the sales condition has decreased. To overcome these conditions, product innovation capability and collaboration between consumers and producers is needed. SMEs must provide innovation for the sustainability of product marketing to meet customer needs. Collaboration in Co-Creation between consumers and producers can improve the marketing performance of SMEs including things about product design, raw materials, and markets for new products, as an effort to increase marketing. The population in this study is the owner of SMEs in the creative industry with a total sample of 60 people. The Purposive sampling technique and analysis technique are applied by using SEM-PLS. The findings of this study indicate that innovation capability has a significant effect on marketing performance. Furthermore, Co-Creation and valuebased selling and innovation capability have a significant effect on market performance. With Innovation and Co-Creation Capability can improve SMEs marketing performance.

Efforts to Enhance Service Quality: The Roles of Innovation Capability and Service Recovery

“…Thus, the impact of value co-creation on an organization's innovation capabilities is demonstrated by active interactions such as sharing new ideas originating from customer experiences. Several researchers have found that value co-creation affects innovation capability (Zhang et al, 2022;Farida & Listyorini, 2021;Hamidi & Gharneh, 2017;Farida et al, 2017). Referring to the description above, the authors propose hypothesis 1, H1: There is an influence of value co-creation on innovation capability.…”