Ratni Prima Lita, Meuthia, Ranny Fitriana Faisal
Tourism sector cannot be separated from the creative industries. The development of the tourism industry in Indonesia is strongly associated with the development of creative industries. This empirical research investigates the linkage between market orientation, learning orientation, organizational innovativeness and organizational performance in the creative industries supporting tourism. The investigation of the linkage was elaborated by analysing the effect of market orientation, learning orientation and organizational innovativeness towards organizational performance and the effect of market orientation towards organizational innovativeness and learning orientation. In order to achieve the objectives, this study utilizes 131 SME’s of handicraft sector in West Sumatera, Indonesia. This sector consists of embroidery and weaves industry as respondents. This study used non-probability sampling by undertaking purposive sampling techniques. The data collected from questionnaires were analysed using Structural Equation Model (SEM) through a multidimensional construct of first-order reflective and second-order formative model. Reflective and formative model were used according to variable definitions and measurement. The software of smart PLS was conducted to analyse the proposed empirical model. The main finding establishes that market orientation leads to significantly stronger effects on organizational innovativeness. However, market orientation does not lead to significant effects on learning orientation. In addition, market orientation and learning orientation also found that there is a positively related to organizational performance, while organizational innovativeness was not driven. Furthermore, these findings contribute to the concept and practice that highlights the role of SME’s owners in the tourism sector. Briefly, the implementation of learning orientation and innovativeness are related to its impact on employees and SME’s sustainability in the future.