Social Network As A Mediator Of Co-Creation's Effect To The Creative Ventures Performance

Abstract

This study aims to explore the role and influence of social network and local experience innovation as mediating for co-creation in influencing firm performance improvement. In addition, this study also aims to explore social network activities and local experience innovation carried out by fashion creative business people in the city of Bandung, so that making fashion business one of the leading creative industries in Indonesia. This study surveyed 50 fashion business units in the city of Bandung. The research method used are descriptive method and structural equation modelling based on the least squares method or commonly called PLS-SEM in order to get the answers of hypotheses carried out. The data analysis using SPSS 20 and SmartPLS3 as statistical tools. Directly, the practice of co-creation between entrepreneurs and customers, as well as entrepreneurs towards partners is able to influence an increase in company performance by 29%. This practice was also able to trigger the emergence of social networks by 54.9%. The results of subsequent studies indicate that this social network is able to increase the ability of business units to innovate through the utilization of local natural wealth and local cultural wealth by 70.4%. In the end, the influence of social network mediation as a whole was able to increase the ability of co-creation to increase company performance by 12%, so the total influence increased become to 40.9% significantly.