ABSTRACT
The performance of creative industries can be triggered by soft innovation putting forward an aesthetic that appeals both to the senses and the intellect. Co-creation as a new paradigm of product development has improved firm performance for at least two decades. This research aimed to study more deeply the interrelationship between them in the creative industries in Indonesia. The data in this research were collected by using a survey method. A questionnaire was distributed to 30 creative businesses of hijab fashion in Bandung. Research confirmed that co-creation did not show a significant influence on creative industry performance, but it could directly improve soft innovation. Therefore, soft innovation had a positive effect on performance, and it was also confirmed that soft innovation could be a good mediator for co-creation to improve firm performance. Furthermore, it was found that partnerships between private sectors were related to successful new products as one of the measurements of the performance of creative industries.
