Market performance of SMEs in the creative economy and the mediating role of innovation practices

Abstract

Nowadays in Indonesia, the creative economy is currently expected to a new power that will be the Indonesian economic foundation in the future. The primary aim of this article is to investigate the market and the SMEs’ performance in the creative economy section and the mediating role of innovation practices until the year 2021. To meet that aim, the analysis technique called Structural Equation Modeling (SEM) assisted by AMOS 21 software is utilized through the survey of 300 SMEs. Structural Equation Modeling (SEM) is an integrated of factor or path investigation. The result of this study reveals that the most important factor that can improve the SMEs’ performance in the creative economy sector is innovation practices.