SOCIAL CAPITAL AND INNOVATION CAPABILITIES: STRATEGIC RESOURCE TO IMPROVE ENTREPRENEURIAL AND PERFORMANCE OF SMES CREATIVE INDUSTRY

This research focuses on the development of performance creative economy especially the crafts sector. Based on the concept of resource based theory and research gap, this study examines the effect of company resources such as social capital, innovation capabilities, and entrepreneurial marketing towards marketing performance in craft creative industries sector. The sampling method is quota sampling and the number of samples  are  100‘s  SMEs  creative  industry  actors.  The  data  analysis  technique  in  this  study  used  the Structural Equation Modelling (SEM) of the software package AMOS 22.0. The result of this study shows that social capital without innovation capabilities can‘t improve the marketing performance. While social capital that owned by craftsmen can be explored to improve innovation capabilities. Furthermore, this innovation capabilities can be used to improve marketing performance. The innovation capabilities is a driving force for the creative industries sector to succeed in marketing. Furthermore, innovative capabilities has significant effect to the entrepreneurial marketing, although entrepreneurial marketing has no significant effect on marketing performance.