The Role of Dynamic Capabilities and Entrepreneurial Orientation Towards Innovation and Its Implications for Creative Economy Performance in Indonesia

Abstract

This study aims to: 1) test and analyze the influence of dynamic capabilities and entrepreneurial orientation on innovation 2) test and analyze the influence of dynamic capabilities and entrepreneurial orientation on creative economy performance 3) test and analyze the effect of innovation on employee performance, 4) test and analyze the influence of dynamic capabilities and entrepreneurial orientation on creative economy performance through innovation. The research was conducted on the creative economy of food and beverages (culinary) in bekasi city with a research sample of 93 respondents. The sampling technique uses a saturated technique. The data analysis method uses descriptive analysis and path analysis. The results showed that: 1) there is an influence of dynamic capability and entrepreneurial orientation on innovation, 2) there is an influence of dynamic capability and entrepreneurial orientation on creative economy performance 3) there is an influence of innovation on creative economy performance, 4) innovation can influence dynamic capabilities and entrepreneurial orientation towards creative economy performance innovation can contribute to increasing dynamic capabilities and entrepreneurial orientation towards creative economy performance.

Entrepreneurial Orientation and Transformational Leadership for the Development of Innovation Capabilities

“…Despite the company allocating resources to R&D activities and additionally dedicating a percentage of the annual budget to innovation activities, it was established that the dimension of risk-taking and proactiveness are the most critical dimensions when making strategic decisions for the generation of innovative products and services. This agrees with the findings of Maulidina, Harri, and Utomo, (2023), who state that the fact of acquiring innovative capabilities requires assuming risks within the field of EO to directly challenge competitors and strengthening of entrepreneurship in the firm to adjust to changes and opportunities to overtake rivals in the market. Although entrepreneurial orientation has been a concept developed in entrepreneurship, the current contexts in industry 4.0 organisations also require the incorporation of another series of talents in entrepreneurship and innovation management practices.…”