Yayan Hendayana, Suryana, Eeng Ahman, Hari Mulyadi
This study examines the effect of technological capabilities on innovation in small and medium enterprises (SMEs) in the handicraft sector’s creative industries in Indonesia. The number of samples in this study was taken as many as 253 SMEs in proportion. Data collection is done by a questionnaire directly to respondents. The data analysis technique in this study is the structural equation model (SEM) approach with the AMOS program. The findings show that technological capabilities has a positive and significant influence on innovation in the craft industry’s SMEs creative industries in Indonesia. The results of this study indicate that the appropriate technological capabilities can help SMEs to innovate processes, products, and marketing. The low technological capabilities will have an impact on the ineffective and efficient work process and the difficulty of developing a variety of products produced. © IJSTR 2019.
Universitas Islam As-Syafi’iyah, Indonesia; Universitas Pendidikan Indonesia, India
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