Businesses Performance and The Competitiveness of The "Sasak" Woven Fabric Industry: The Impact Innovation of Capability, Creativity, and Value Creation

Abstract

The environment is changing rapidly. This requires companies to improve innovation of capability, create valueadded products and be creative. This study purpose to analyze the effect of innovation of capability, value creation, creativity on the performance and competitiveness of an industry. This research is centered on the “Sasak” woven fabric industry center in Central Lombok Regency, Nusa Tenggara Barat Province. 126 craftsmen were used as respondents. Data collection is done through observation and questionnaires. Data analysis using SEM-PLS. This study found that innovation of capability affects performance. Value creation affects competitiveness. Creativity affects competitiveness. Therefore, SMEs need to improve their innovation of capability, SMEs need to be oriented towards learning, continuous training, and organizational collaboration.