Evaluation of the Innovation Capability toward Business Sustainability in the West Java Creative Market

The establishment of the West Java Creative Market showcases the West Java government’s optimistic stance toward the creative economy, a significant contributor to Indonesia’s gross domestic product (GDP), with West Java alone contributing 11.81%. Factors such as Bandung’s sophisticated lifestyle drive demand for the culinary, fashion, and craft industries. Despite being new, West Java Creative Market faces challenges in maintaining and enhancing strengths for future sustainability, with innovation being crucial. This study examines how product, service, process, and marketing innovation impact the sustainability of micro, small, and medium enterprises (MSMEs) in the creative sector. Using a quantitative approach with purposive sampling, 100 entrepreneurs and staff from West Java Creative Market were surveyed. It is found that product innovation and service innovation significantly affect business sustainability, while process innovation and marketing innovation have positive but insignificant impacts on business sustainability. Meanwhile, simultaneously, innovation capability has been shown to affect the sustainability of enterprises.