The Antecedents of Innovativeness and Its Impact to Firm Performance: Moderating Effect of Social Network Services Usage in Creative Industry

Abstract

Since creative industry is an immature sector, the firm innovativeness is influenced by the orientation of its business owner. This relation is also affected by the rise of social networking sites that have been used by business owner in their daily activity. Thus, the purpose of this research is to investigate the use of social networking sites will influence firm innovativeness which affects firm performance in creative industry. Additionally, another purpose of this study is to identify the environmental dynamism in influencing the relation between firm innovativeness and firm performance in creative industry. Since this research will study business owner orientations to their firm innovativeness that will affect firm performance, thus this research will use structural equation modeling and also hierarchical linear regression. Based on that, the finding in this research shows that social networking services usage has influenced the relation between firm innovativeness and its antecedents. Besides that, based on dynamic capabilities theory, the firm innovativeness will positively influence firm performance in creative industry. The research also finds similar result. This study is using Dynamic Capabilities as the basic theory, thus the contribution to the theory is the social networking services usage of the business owner that will influence the relation between their orientations to firm innovativeness. Besides that, the multi-level analysis that is used in this study also contributes to the theory. In managerial aspect, business owner in creative industry in term of increasing their firm performance, are advised to develop their market, learning, and entrepreneurial orientation. Furthermore, business owner in creative company should enhance their orientations with their social networking usage that. On the other hand, the limitation of this study is the perceived firm performance that suggested to use financial data in the future research. Besides that, in terms of operational definition of innovativeness, in future research should elaborate the components of innovativeness. The data collection also become limitation in this research, thus in future research it is suggested to collect the data from country which has similarity in creative sector classification.