The Role of Creativity in Mediating Absorptive Capacity and Human
Capital to Increase Product Innovation in Creative Industry MSMEs
KUSUMAH ARIF PRIHATNA, IDRIS GAUTAMA SO, HARDIJANTO SAROSO,
SRI BRAMANTORO ABDINAGORO
Management Department, BINUS Business School,
Doctor of Research in Management,
Bina Nusantara University,
Jl. Raya Kb. Jeruk No.27, RT.1/RW.9, Kb. Jeruk, Kec. Kb. Jeruk, Jakarta Barat,
DKI Jakarta 11530,
INDONESIA
Abstract: - This article aims to analyze the role of creativity as a mediating factor in enhancing product
innovation within the context of the culinary creative industry MSMEs in Indonesia. This study adopts a
quantitative approach and utilizes a survey method for primary data collection through questionnaires from 162
MSMEs. The collected data were analyzed using PLS-SEM. The study's findings indicate that absorptive
capacity and human capital have a more direct influence on product innovation compared to the mediation of
creativity. Creativity partially mediates the influence of absorptive capacity, while the influence of human
capital on product innovation cannot be mediated by creativity
Key-Words: - Creativity, Absorptive Capacity, Human Capital, Product Innovation, PLS-SEM, MSMEs,
culinary creative industry, Indonesia
Received: June 13, 2023. Revised: October 12, 2023. Accepted: November 15, 2023. Available online: December 15, 2023.
1 Introduction
The creative industry encompasses various
economic endeavors centered on creativity,
expertise, and aptitude, possessing the capacity to
generate prosperity and employment through the
creation and utilization of creative and cultural
goods, services, and intellectual property, [1].
One of the fields within the creative industry is
culinary, which involves innovation primarily in
recipe development and food presentation, [2].
Consumers perceive food and drink as art, and the
culinary industry provides opportunities for
enterprises to express their creativity, especially for
micro, small, and medium enterprises (MSMEs).
The growth of MSMEs in the culinary creative
industry has continued to increase in recent years,
[3]. This is attributed to the high interest of
consumers in innovative, unique, quality, and
character-filled food and beverages. Innovative
products needed in the creative industry are closely
related to the presence of creativity. However,
creativity does not always manifest easily within
MSMEs, [4].
Creativity has a significant influence on
innovation, [5]. Creativity, defined as the capacity to
generate fresh and unique concepts, plays a crucial
role, while innovation involves putting these ideas
into practice to create novel value. In the absence of
creativity, individuals or organizations face
challenges in generating new ideas that can be
translated into innovative outcomes. Numerous
studies have demonstrated that creativity
significantly enhances the capacity to generate
innovative ideas, [6], [7], [8], [9], [10]. Individuals
with high levels of creativity are more likely to
generate implementable and innovative ideas.
Moreover, creativity enables individuals to think
beyond conventional boundaries and approach
problems from diverse perspectives, thereby leading
to the emergence of unprecedented ideas, [11].
However, creativity alone is insufficient for
fostering innovation. Innovation can also depend on
the ability to gather information from the external
environment and apply it internally, as well as on
empowering human resources.
Individuals, as human resources, displaying
higher levels of creativity are more likely to develop
innovative solutions to problems study, [12]. Prior
studies also show a positive correlation between
both absorptive capacity and human capital in
relation to innovation. Organizations with stronger
absorptive capacity are more likely to engage in
innovation activities, generate novel ideas, and
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translate knowledge into innovative outcomes, [13].
Organizations that invest in developing and
nurturing their human capital are more likely to
experience higher levels of innovation and remain
competitive in today's rapidly evolving world, [14].
However, it would be very interesting to
investigate the ability of creativity to mediate both
absorptive capacity and human capital in the context
of innovation, since creativity has a close relation to
innovation, [15]. There are basic assumptions
regarding the relationship between absorptive
capacity, human capital, and creativity. Studies have
shown that education and expertise, cognitive
abilities, experience and domain knowledge,
learning, and adaptability within human capital are
positively correlated with creativity, [16]. Studies
have also found that knowledge diversity and the
integration of new knowledge within absorptive
capacity positively influence creativity, [17].
Therefore this study adopts a quantitative approach
to investigate the research question: to what extent
does creativity mediate absorptive capacity and
human capital on product innovation in the context
of culinary creative industry MSMEs?
2 Literature Review
2.1 Creativity
Creativity plays a crucial role in driving innovation,
fostering progress, and bringing about positive
change. It refers to the ability to generate new,
original, and valuable ideas through a mental
process that involves creative thinking, problem-
solving, and the generation of novel solutions or
concepts that have not been previously conceived,
[15].
Creativity is often associated with thinking
outside the box, transcending conventional
boundaries, and generating unconventional
combinations of ideas. Guilford's creativity model
encompasses "divergent thinking," which involves
generating multiple ideas or solutions
simultaneously, and "convergent thinking," which
relates to identifying the best solution within a given
context, [18].
This study categorizes creativity into two main
concepts, namely improvisational creativity and
compositional creativity, [19], [20]. Improvisational
creativity pertains to generating novel ideas that
significantly diverge from existing ideas, ultimately
leading to the creation of entirely new products that
have never been available before, [21]. Meanwhile,
compositional creativity involves the development
of existing or previously proposed ideas, often
entailing modifications and enhancements to refine
existing ideas. This concept can result in variations
and adaptations that enhance existing products, [22].
2.2 Absorptive Capacity
Absorptive capacity encompasses the capability to
identify, assimilate, integrate, and apply fresh
insights from the external environment into an
organization's internal operations and procedures. It
essentially involves the process of studying existing
knowledge or information and leveraging it to
enhance performance, foster innovation, and gain a
competitive advantage, [23]. Organizations
endowed with robust absorptive capacity can
proactively predict shifts in the business landscape,
seize emerging opportunities, and effectively
address challenges.
This study breaks down absorptive capacity into
four components, specifically: acquisition, which
pertains to the capacity to discover, identify, and
procure external knowledge; assimilation,
encompassing the activities of analyzing,
processing, interpreting, comprehending, and
absorbing external knowledge; transformation,
referring to the ability to blend external knowledge
with internal expertise; exploitation, signifying the
aptitude to apply newly acquired knowledge to a
company's product strategies, [13], [24], [25].
2.3 Human Capital
Human capital refers to the economic value derived
from the knowledge, skills, experience, and
individual attributes present in a population or
organization, which can serve as valuable assets in
the process of production and economic
development, [26]. Similar to physical capital,
human capital can be enhanced through investment
and development.
This study divides the concept of human capital
into two categories namely, general human capital
and specific human capital, [27].
General human capital encompasses transferable
knowledge, skills, and attributes that possess broad
applicability across various job contexts and
industries. Examples of general human capital
include effective communication skills, problem-
solving proficiency, time management expertise,
and analytical capabilities.
On the other hand, specific human capital
pertains to knowledge, skills, and experience that
are specialized or tailored to a particular job or
industry, directly addressing specific tasks, skills, or
requirements within that particular context.
Instances of specific human capital encompass
proficiency in a particular programming language
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for computer coding, specialized expertise in the
legal or financial sectors, or specialized work
experience within a specific industry.
2.4 Product Innovation
Product innovation is a concept regarding the
development and implementation of new ideas or
technology in a product. Product innovation allows
companies to modify existing products into
something new, or create new products that can
provide added value for consumers and enable them
to open new market opportunities.
This study identifies four forms of innovation as
indicators of the existence of innovation in a
company, namely incremental innovation, modular
innovation, architectural innovation, and radical
innovation.
Incremental innovation is an innovation
involving small changes or gradual improvements to
existing products that require repeated adjustments
and refinements to improve existing product
features, [28].
Modular innovation is an innovation that occurs
when a product or system is broken down into
separate, smaller components that can be used or
replaced independently, allowing for the
replacement or improvement of one component
without affecting the entire product or system, [29].
Architectural innovation is an innovation that
changes the relationships and interactions between
components, as well as changing the shape of a
product or system which requires modification of
the design, structure, or features of an existing
product or system, [30].
Radical innovation is an innovation with
significant differences that involves innovation in
components, forms, and interactions between
components in a product or system, which often
provides a new paradigm in the related industry
[31].
2.5 Hypotheses Development
The importance of absorptive capacity in facilitating
innovation and organizational learning has been
discussed, where a greater ability to absorb and
assimilate external knowledge can help
organizations gain competitive advantage through
innovation, [23]. Contrasts in relative absorptive
capacity among organizations can affect their ability
to learn from the outside environment and share
information with business partners, which in turn
influences their capacity to foster collaborative
innovation and achieve a competitive advantage,
[32]. Absorptive capacity plays a significant role in
encouraging the access and utilization of outside
information for organizational innovation, [13].
Furthermore, a positive relationship between
absorptive capacity and innovation performance
indicates that organizations with stronger abilities to
access, understand, and integrate new knowledge
tend to achieve better innovation outcome, [33].
High absorptive capacity empowers organizations to
access, comprehend, and apply new knowledge,
thereby driving innovation. The research model of
this study is presented in Figure 1.
H1. Absorptive Capacity significantly and positively
affects Product Innovation
High-quality human capital and optimal
organizational task structures mutually influence
each other in enhancing the innovation capacity of
organizations, [14]. This highlights the importance
of effectively managing and optimizing human
capital and designing task structures that foster
productive collaboration, ultimately leading to
higher levels of innovation. Human capital,
including the skills, knowledge, experience, and
creative capacity of its employees, significantly
influences the company's ability to innovate, [34].
Previous study showcased that when companies or
organizations invest their resources in the
development and enhancement of human capital,
such as education, training, and employee skills
development, it contributes to an increase in their
level of innovation, [35]. Moreover, heterogeneity
in human capital has implications for corporate
innovation, specifically focusing on educational and
functional backgrounds, [36]. Higher human capital,
whether in the form of education, skills, or
experience, has a positive relationship with a higher
level of innovation.
H2. Human Capital significantly and positively
affects Product Innovation
The support provided by organizations to
employees in encouraging creativity, which includes
a supportive work environment, employee training
and development, resources provided, and
recognition for creative contributions, influences the
resulting innovations, [37]. However, the barriers
that impede creativity within SME companies affect
a company's ability to innovate. These barriers can
include internal factors such as lack of resources or
expertise, as well as external factors such as
regulatory constraints or lack of access to networks
and collaboration, [5]. Previous study revealed that
level of creativity in a country can affect the
effectiveness of innovation and productive
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efficiency at the national level where creativity
refers to the ability to produce new and original
ideas, while the effectiveness of innovation relates
to the degree to which the innovations produced
achieve goals and provide added value for
organizations or communities, [38]. Organizations
can develop capabilities to simultaneously carry out
exploration which includes experimentation and the
creation of new knowledge, and exploitation which
involves utilizing and mastering existing
knowledge, through mechanisms of creativity that
affect the success of innovation, [39]. Creativity is
an important factor driving innovation where the
ability to generate new ideas and think creatively
forms the foundation for successful innovation.
H3. Creativity significantly and positively affects
Product Innovation
High absorptive capacity has the potential to
influence organizational creativity by enabling
organizations to acquire new knowledge and
integrate it into their innovation and creativity
processes, [17]. Another study also indicates the
impact of absorptive capacity on creativity, where
creativity is closely related to job performance, [40].
Furthermore, absorptive capacity with knowledge
integration has an impact on team creativity and
fully mediates external knowledge search, [41],
Individual absorptive capacity influences individual
creativity, and mediates creative self-efficacy,
individual knowledge, and IT support toward
individual creativity, [42]. Absorptive capacity
plays a crucial role in promoting organizational and
individual creativity. By possessing a strong ability
to access, understand, and integrate new knowledge,
organizations can create an environment that
supports and nurtures creativity.
H4. Absorptive Capacity significantly and positively
affects Creativity
A prior study has demonstrated that factors such
as freedom in the workplace, supervisory support,
and adequate resources contribute to increased
individual creativity in the work environment, [7],
Additionally, there is a positive relationship
between individuals' creative self-efficacy and their
creativity. Factors such as previous experience in
generating ideas, environmental support, and belief
in one's abilities played crucial roles in boosting
creative self-confidence, [43]. Another study shows
that job dissatisfaction can stimulate individual
creativity through the mechanism of voice
expression. When individuals are allowed to express
dissatisfaction and provide constructive suggestions
for work situations, it can encourage creative
thinking and innovation, [44]. Moreover, factors
such as relevant knowledge and skills, intrinsic
motivation, a challenging environment, and social
support can enhance individual creativity, [16].
Human capital can influence creativity as it
encompasses the interaction between knowledge,
skills, experience, and individual cognitive abilities,
which are all essential components in the creative
process.
H5. Human Capital significantly and positively
affects Creativity
The mediating effect occurs through specific
causal pathways between the independent variables
and the dependent variable. In this case, the
mediating variable acts as an intermediary or
mediator, explaining part or all of the relationship
between the independent variables and the
dependent variable. This can be attributed to the
significant relationship between the independent
variables (absorptive capacity and human capital)
and the mediating variable (creativity, and also the
relationship between the mediating variable and the
dependent variable (product innovation) as the
mediating variable significantly influences the
dependent variable, [45], [46].
H6. Creativity significantly and positively
mediates Absorptive Capacity toward
product innovation
H7. Creativity significantly and positively
mediates Human Capital toward product
innovation
Fig. 1: Research Model
3 Methodology
This study employed a descriptive approach
alongside a quantitative methodology to establish
the hypothesized relationships. Utilizing a
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quantitative methodology allows for the
identification of patterns, relationships, and trends
within the data, facilitating generalizations about the
population being investigated. On the other hand,
the descriptive approach serves as a means to
accurately portray the characteristics, features, or
behavior of the specific population, sample, or
phenomenon, [47].
The data for this study were collected through a
cross-sectional survey, utilizing a 7-point Likert
scale questionnaire consisting of 16 items derived
from literature reviews. The questionnaires were
distributed among specific populations represented
by randomly selected samples. The objective was to
gather comprehensive information regarding
perceptions, views, or attitudes related to the
proposed topic, [48].
The research sample comprised owners, leaders,
and employees within the culinary creative
industry's MSMEs (micro, small, and medium
enterprises) in Indonesia. The overall sample
consisted of 162 individuals, meeting the minimum
sample size adequacy, [46].
Absorptive capacity was measured using 4 items,
[13], human capital was measured using 4 items,
[27], creativity was measured using 4 items, and
product innovation was measured using 4 items,
[30].
The determination of the sample size was based
on a proportionate sampling of the total creative
economy MSMEs in the culinary sector across three
provinces: DKI Jakarta with a total of 338.093
MSMEs, West Java with a total of 1.078.743
MSMEs, and East Java with a total of 984.288
MSMEs, [49]. The proportion percentage for each
province is 14%, 45%, and 41%, and following the
rule of thumb, [46], resulting in a minimum number
of samples of 160. Ultimately, the data collected
consisted of 162 samples, with 23 samples from
DKI Jakarta, 73 samples from West Java, and 66
samples from East Java. The profile samples are
presented in Table 1.
In this study, the data were analyzed, and the
hypothesis was tested using SmartPLS 3.0, a
software that employs the PLS-SEM method as one
of the analytical techniques within Structural
Equation Modeling (SEM). Partial Least Squares
(PLS) is the underlying principle used to assess the
validity and reliability of the constructs and to
evaluate the structural model.
Table 1. Profile of samples
Position of respondent
Owner
56,2%
Leader
39,5%
Employee
4,3%
Education of respondent
Master
4,3%
Bachelor
31,5%
Diploma
38,9%
High school
25,3%
Age of respondent
17 – 25 years old
21,0%
26 – 35 years old
46,3%
36 – 45 years old
25,3%
46 – 55 years old
7,4%
Company age
< 1 year
4,3%
1 - 3 years
42,6%
3 - 6 years
30,2%
> 6 years
22,8%
Number of employees
1 - 4 (micro)
42,0%
5 - 19 (small)
34,6%
20 - 99 (medium)
23,5%
Number of product variant
1 - 5 variant
84,6%
6 - 10 variant
11,7%
11 - 15 variant
1,2%
16 - 20 variant
2,5%
Validity ensures that the measurement
instrument or method used accurately measures the
intended concepts, thereby ensuring that the
measurement results reflect the concepts being
measured.
Reliability ensures that the measurement
instrument or method used is consistent and
dependable, guaranteeing that the measurement
results obtained will be similar when measurements
are taken at different times. The evaluation of the
structural model (R2, f2, Q2) facilitates better
decision-making in testing the compatibility
between empirical data and existing theory, [45],
[46].
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Table 2. Reliability Test
Indicators
Indicator
Loading
(Outer
Loading)
Construct
Reliability
(Cronbach’s
Alpha &
Composite
Reliability)
AC1
AC2
AC3
AC4
0,842
0,823
0,829
0,810
0,846
&
0,896
Cr1
Cr2
Cr3
Cr4
0,814
0,814
0,803
0,834
0,834
&
0,889
HC1
HC2
HC3
HC4
0,779
0,811
0,737
0,761
0,775
&
0,855
PI1
PI2
PI3
PI4
0,843
0,844
0,872
0,815
0,866
&
0,908
Table 3. Validity & Collinearity Test
Construct
Indicators
Convergent
Validity
(AVE)
Collinearity
Test (VIF)
Absorptive
Capacity
AC1
AC2
AC3
AC4
0,682
2,434
1,996
2,102
1,623
Creativity
Cr1
Cr2
Cr3
Cr4
0,667
1,581
1,838
1,405
1,675
Human
Capital
HC1
HC2
HC3
HC4
0,597
1,788
1,732
1,857
1,996
Product
Innovation
PI1
PI2
PI3
PI4
0,711
2,286
2,999
2,612
2,719
Table 4. Discriminant Validity - Fornell-Larcker
Criterion
Construct
Fornell-Larcker Criterion
AC
Cr
HC
PI
Absorptive Capacity
0,826
Creativity
0,505
0,817
Human Capital
0,304
0,585
0,772
Product Innovation
0,479
0,575
0,624
0,843
Table 5. Discriminant Validity - HTMT
Construct
HTMT
AC
Cr
HC
PI
Absorptive Capacity
Creativity
0,592
Human Capital
0,403
0,720
Product Innovation
0,513
0,667
0,755
Table 2 and Table 3 presents several steps of the
validity and reliability tests. Indicator loadings
greater than 0,708 indicate that the indicators
effectively and positively measure the intended
latent construct. Construct reliability between 0,70
and 0,95 shows the extent to which the indicators
that make up the construct collectively measure the
construct accurately. Convergent validity, with an
Average Variance Extracted (AVE) greater than 0,5
indicates that the constructs significantly contribute
to explaining variations in the indicators. A
collinearity test with a Variance Inflation Factor
(VIF) value less than 3 suggests that
multicollinearity is not significant in the model,
[45], [46].
Table 4 and Table 5 demonstrate discriminant
validity using the Fornell-Larcker criterion and the
Heterotrait-Monotrait (HTMT) ratio. According to
the Fornell-Larcker criterion, it is expected that the
square root of each construct's AVE is larger than its
highest correlation with any other construct. While,
the HTMT values less than 0,90 indicate no
potential issues with discriminant validity, [45],
[46].
Table 6. Coefficient of Determination
Target variable
R2
Result
Creativity
0,460
moderate
Product Innovation
0,502
moderate
Table 7. Cross-validated Redundancy
Target variable
Q2
Result
Creativity
0,369
acceptable
Product Innovation
0,442
acceptable
Table 6 presents the main metrics for evaluating
the structural model and the predictive relevance of
the model. The coefficient of determination, with a
higher value approaching one, indicates the model's
ability to explain variations in the dependent
variable (target variable). While, a positive
blindfolding value in Table 7, suggests that the
model has a better predictive ability for the
dependent variable (target variable) compared to
random predictions, [45], [46].
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Table 8. Effect Size
Relations
f2
Effect
AC Cr
0,219
medium
AC PI
0,092
small
HC Cr
0,380
large
HC PI
0,249
medium
Cr PI
0,041
small
Table 8 presents the strength and significance of
the effects of the independent variables on the
variation of the dependent variable (target variable).
The f2 value ranges from zero, and a higher f2 value
indicates a greater influence of the predictor
variable on the dependent variable, [45], [46].
The assessment of validity, reliability, and
evaluation of the structural model indicate that both
the measurement model and the structural model are
considered reliable enough to test and validate
hypotheses regarding the relationships between
variables. The Research Model by SmartPLS is
presented in Figure 2.
Fig. 2: Research Model by SmartPLS
4 Result and Discussions
4.1 Results
The regression results obtained using SmartPLS 3.0
based on data collected from MSME actors in the
culinary creative industry indicate a positive and
significant influence of absorptive capacity, human
capital, and creativity on product innovation.
Table 9. Direct Effect Structural Model Test
Hypotheses
Path
Coefficient
t-
Values
p-
Values
H1: AC PI
0,248
2,665
0,008
H2: HC PI
0,434
8,507
0,000
H3: Cr PI
0,195
2,182
0,030
H4: AC Cr
0,361
6,028
0,000
H5: HC Cr
0,475
5,328
0,000
Table 9 displays the specific effects of each
variable on product innovation. Absorptive capacity
is found to have a positive and significant effect on
product innovation, as evidenced by a path
coefficient value of 0,248, a t-value greater than
1,96, and a p-value less than 0,05 at a 95%
confidence level. Therefore, hypothesis 1 is
accepted. Similarly, human capital demonstrates a
positive and significant effect on product
innovation, with a path coefficient of 0,434, a t-
value of 8,507, and a p-value of 0,000. Creativity
also exhibits a positive and significant effect,
although it has the lowest path coefficient value and
a p-value close to 0,05 compared to absorptive
capacity and human capital. Hence, hypotheses 2
and 3 can also be accepted. Nevertheless, human
capital exerts the strongest influence on product
innovation.
This study considers creativity as a potential
mediator between absorptive capacity and human
capital toward product innovation. Mediation
requires the presence of independent variables that
affect the mediating variable and mediating
variables that influence the dependent variable, [50].
Thus, after confirming the acceptance of hypothesis
3, it becomes necessary to analyze hypotheses 4 and
5.
Hypothesis 4 can be accepted that absorptive
capacity has a significant effect on creativity where
the t-value is greater than 1.96 and the p-value is
less than 0.05 at the 95% confidence level.
Similarly, human capital is found to significantly
influence creativity, with a t-value of 5,328 and a p-
value of 0.000, confirming the acceptance of
hypothesis 5.
Table 10. Mediating Effect of Creativity
Hypotheses
Path
Coefficient
t-
Values
p-
Values
H6:
AC Cr PI
0,070
2,073
0,039
H7:
HC Cr PI
0,093
1,910
0,057
Table 10 shows the regression results of the
mediation effect where hypothesis 6 is accepted
which shows that creativity mediates the effect of
absorptive capacity on product innovation.
Meanwhile, hypothesis 7 is rejected because the t-
value is smaller than 1.96 and the p-value is greater
than 0.05, so creativity is declared unable to mediate
human capital toward product innovation. However,
even though the mediation effect occurs, it can be
seen that the mediation effect is smaller than the
direct effect of creativity.
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4.2 Discussion
This study discusses innovation in products which
can be influenced by 3 variables as shown in the
research model, where creativity is a factor that
mediates absorptive capacity and human capital on
product innovation in micro, small, and medium-
sized enterprises (MSMEs) in the culinary sector of
the creative industry in Indonesia
This study provides results where absorptive
capacity, human capital, and creativity have a
positive and significant influence on product
innovation. Human capital has the greatest influence
on product innovation, followed by absorptive
capacity, while creativity has the smallest influence
on product innovation.
Absorptive capacity is an organization's ability to
identify, obtain, apply, and utilize new knowledge
from the external environment where high
absorptive capacity further increases the possibility
of achieving product innovation. Human capital is
the knowledge, skills, experience, and abilities of
individuals who contribute significantly to an
organization's ability to create successful product
innovations. Creativity, on the other hand, is the
mental ability to generate new ideas, innovative
solutions, and original thinking. It plays a crucial
role in generating new ideas, problem-solving,
combining existing concepts, and driving innovation
in the product development process. These findings
align with previous research highlighting the
importance of absorptive capacity, human capital,
and creativity in supporting innovation, which in
this study is a product, [33], [34], [37].
The study also reveals that absorptive capacity
influences creativity. A strong absorptive capacity
can foster creativity by providing new inputs,
stimulating associative thinking, enriching
knowledge, and creating a conducive learning
environment for innovation. Similarly, a diverse and
capable human capital within an organization
provides a solid foundation for individual creativity.
Supportive knowledge, skills, experience, and
organizational culture broaden perspectives,
stimulate innovative thinking, and encourage
ongoing creativity in generating useful solutions and
ideas for innovation, [16], [17].
The discussion of the results centers on the role
of creativity as a mediating variable. Partial
mediation occurs in the relationship between
absorptive capacity and product innovation, where
creativity acts as the mediator. Absorptive capacity
helps organizations absorb relevant knowledge for
innovation, and creativity plays a crucial role in how
this knowledge is generated, selected, and
implemented into effective and impactful product
innovations. However, the direct effect of absorptive
capacity on product innovation is more significant
than when it is mediated by creativity. In contrast,
the results indicate an insignificant effect when
examining the relationship between human capital
and product innovation mediated by creativity.
Human capital encompasses various aspects,
including knowledge, skills, and experience. While
strong human capital provides a solid foundation for
creativity, it is possible that the skills and
knowledge possessed by individuals or
organizations are not directly related to creative
aspects, leading to a lack of basis from human
capital to achieve product innovation.
5 Conclusion
In conclusion, this study highlights the role of
creativity in strengthening the relationship between
absorptive capacity and human capital toward
product innovation. However, the findings indicate
that the impact of creativity as a mediating factor is
limited. The relationship between absorptive
capacity and product innovation, mediated by
creativity, shows a small effect, while the
relationship between human capital and product
innovation, mediated by creativity, does not show
any mediation effect. Therefore, creativity is not
suggested as a significant mediating factor in this
context. Achieving product innovation relies more
on direct factors such as the processes of
identifying, absorbing, applying, and utilizing new
knowledge from the external environment, as well
as the quality and competence of individuals.
Despite the overall findings, it is important to
acknowledge certain limitations of this study. First,
this study applies only to the population in the
context of the culinary creative industry MSMEs in
Indonesia. Further research can be directed at
broader research subjects. Second, many factors can
influence product innovation, but this research only
limits the variables as shown in the research model.
Future research could explore other factors that can
influence product innovation, such as learning or
leadership.
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Contribution of Individual Authors to the
Creation of a Scientific Article (Ghostwriting
Policy)
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research, at all stages from the formulation of the
problem to the final findings and solution.
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Scientific Article or Scientific Article Itself
No funding was received for conducting this study.
Conflict of Interest
The authors have no conflict of interest to declare.
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