THE CENTRAL ROLE OF BUSINESS MODEL INNOVATION ON FIRM PERFORMANCE IN THE CREATIVE INDUSTRY

Previous studies on business model innovation were considered to have several problems specifically related to the clarity of the construct and gaps with antecedents, contingency and results. Most researches focused on variables outside the organization as antecedents of business model innovation. This study examines variables that are within the organization, namely transformational leadership, innovation culture and information technology as antecedents of business model innovation and measures their impact on firm performance. The study was conducted on 196 firms in the creative industry in Indonesia. Structural Equation Model was used to analyse statistical data. The result shows that transformational leadership, innovation culture and information technology do not directly impact firm performance. They need to be mediated by business model innovation