Do digital marketing, integrated supply chain, and innovation capability affect competitiveness, and creative industry performance?

Abstract

This study tried to explain the effect of digital marketing, supply chain integration, and innovation capabilities in increasing competitiveness and creative industries performance. There were three creative industry business sectors as units of analysis, namely culinary, craft and fashion sectors. A quantitative approach was used through a survey of 163 creative industries located in five regions i.e.: Makassar City, ParePare City, Wajo Regency, Tana Toraja Regency and North Toraja Regency. While respondents were business owners, managers, and supervisors. Descriptive statistics, and structural equation modelling as a method of analysis. Results showed that digital marketing and integrated supply chain significantly influences competitiveness as well as creative industry performance. Meanwhile, innovation capability significantly influences competitiveness, but not significantly on creative industry performance. This study also proved that competitiveness significantly affected creative industry performance. In addition, this study also confirmed that competitiveness mediated partially on effect digital marketing and integrated supply chain toward business performance and mediated fully on effect innovation capability toward business performance, primarily in the context of creative industry development.