The Eco-Innovation Variables which Influence the Performance of Creative Industries Center of Natural Stone Crafts

This study investigates the eco-innovation variable which has the significant effect on creative industries center’s performance of marble and natural stone craft sector in Tulungagung, Indonesia. The object of the study is the creative industries center with the non-renewable raw material. Mostly, the companies are in form of small and medium-sized enterprises (SMEs) which is ‘passive eco-innovator’ and their eco-innovation variables have not been investigated before in terms of their influence on their performance. The respondents were 81 craftsmen taken from the population. The data were collected through questionnaires which were tested, processed and analyzed by using Consistent Partial Least Square (PLSc). The eco-innovation variables which significantly effect on innovative performance are eco-organizational innovation and eco-product innovation. Eco-process innovation and eco-marketing innovation don’t directly affect on innovative performance, but its significant effect on eco-product innovation may influence innovative performance. Improving innovative performance will impact on financial performance through improvement of production performance, but market performance does not significantly affect financial performance. The findings of this study could be a reference for creative industries center’s of marble and natural stone craft sector to prioritize which type of eco-innovation should be improved so that its impact on performance is more significant.