BUSINESS INTELLIGENCE, STRATEGY INNOVATION, AND DIGITAL VALUE CREATION FOR BUSINESS PERFORMANCE ON DIGITAL CREATIVE INDUSTRIES

Micro, Small and Medium Enterprises’ (MSMEs) business performance in digital creative industries still remain an issue in Indonesia. This paper evaluates the influence of business intelligence on business performance through digital value creation mediated by innovation strategy. This research is conducted in the digital creative industries using 104 respondents consisting of managers and company owners in Indonesia. The method used is Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that business intelligence exhibits positive and significant impact both on digital value creation and innovation strategy. Apart from that, innovation strategy exhibits positive and significant impact on digital value creation. Lastly, digital value creation exhibits positive and significant impact on business performance. Likewise, the indirect influence of all variables in the model shows positive and significant results. A major limitation of this study is the study sample. Since the sample covers only eight cities in Indonesia, it does not represent the whole of Indonesia. However, since no empirical study has evaluated business intelligence through digital value creation mediated by strategy innovation, this study makes a unique contribution to business performance on digital creative industries in Indonesia.