Abstract

This article aims to analyze the relationship between intellectual capital and innovation through market orientation in the Indonesian film Industry as a creative economy in the new economic age based on information intensification and creativity with superior ideas, knowledge and competencies of human resources. To collect data, a questionnaire was used. Out of 65 populations of film companies, by random sampling, 56 were selected as representative samples. The Partial Least Square Structural Path-Modeling (PLS-PM) was used to test the hypotheses. The research outcomes revealed that intellectual capital, market orientation, and innovation are fairly high. Intellectual capital has a positive effect on market orientation and innovation. Market orientation mediates the effect of intellectual capital on innovation. Intellectual capital may directly affect the innovation of the Indonesian film industry and through market orientation. Human capital, structural capital, and customer capital must be strengthened to support customer orientation, competitor orientation, and internal integration of the company, so that innovations in products, processes, and strategies can be increased. This study implies that the innovation will develop more with the pertinent intellectual capital and suitable market orientation.