Track: Business Management

Abstract

Public phenomena that are easy to see and argue for something that attracts attention can be utilized for the creative industry through viral marketing. This marketing method is considered capable of achieving an exponential level of sales. It is rooted in previous research that viral marketing that drives sales simultaneously can immediately decline, which is a gap that stems from future research studies (Leskovec, Adamic, & Huberman, 2007). The decrease was caused by products that were not following customer wishes. Thus, viral marketing to achieve success requires the support of innovation inherent in processes, products, and services. The presence of innovation needs to be provided through dynamic capabilities. This study offers dynamic capability variables and innovation performance to build a model in viral marketing based on the Theory of Planned Behavior which is empirically tested. The sample was 81 respondents who were creative industry managers in Central Java. Structural Equation Modeling (SEM) is the analytical tool used with Smart-PLS software. The results of this study prove the significant role of knowledge sharing, dynamic capabilities, and innovation performance in driving viral marketing success. Dynamic ability is dominant in encouraging knowledge sharing on viral marketing (? = 0.233).

Keyword: Creative Industry, Knowledge Sharing, Dynamic Capability, Innovation Performance, Viral Marketing