Abstract
Batik is one of the important industries and the pride of Indonesia. Batik is a world cultural heritage which is originally Indonesia. In batik industry, innovation is one of the important factors that will improve marketing performance. This study wanted to test some of the main drivers of innovation and marketing performance on Batik SMEs. The purpose of this study is (1) Testing the influence of social capital on innovation and marketing performance; (2) Testing the effect of entrepreneurial orientation on innovation and marketing performance; and (3) Testing the influence of co-creation on innovation and marketing performance. The research sample consisted of 161 batik businesses in the city of Sragen and Purwodadi. Data were analyzed using SEM PLS and processed using WarpPls with version 5. The results of this study indicate that only some of the hypotheses are accepted, such as (1) entrepreneurial orientation is able to significantly improve innovation, (2) co-creation is able to significantly increase innovation, (3) market capability is able to significantly improve innovation, and (4) market capability is able to significantly improve marketing performance Keywords: Entrepreneurial Orientation, Social Capital, Market Capabilities, Co-Creation, Innovation, Marketing Performance
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