ABSTRACT

Digital transformation and technological advancements in all industrial sectors have encouraged companies in information and communication technology (ICT) to continue developing strategies and innovations for business competition. In recent decades, innovation culture and knowledge-based business development can be interpreted as an indicator of the transformation of the industrial economy into a knowledge-based economy. Customers are thought to be the source of remarkable innovation. This research examines the effect of an innovation culture and customer co-creation on market performance in information and communication technology companies. Specifically, it focuses on Knowledge-Intensive Business Services (KIBS) that can support businesses in achieving high firm performance in the market by utilizing marketing innovation and product innovation factors. A survey was conducted on 235 respondents and tested using the Partial Least Squares (PLS-SEM) method. The results of this research are that innovation culture and customer co-creation can positively influence the market innovation, product innovation, and market performance in ICT firms with KIBS.