THE EFFECT OF INNOVATION TO ORGANIZATION PERFORMANCE AT CULINARY INDUSTRY ON BRAGA DISTRICT

Abstract

Culinary industry contributed around 25% to gross regional product domestic (GDP) in 2013. This condition proved that culinary having been become an identity and brand of the city, that we should keep preserve and evolve to improve Indonesia tourism. Braga is one of the heritage street in Bandung city, built with colonial architecture design. Braga has become a special place in people’s own, to be a place for hanging out, the place for taking the picture, enjoying the old-building, and most of all culinary experience. This research conduct to 34 culinary along Braga street.  Data show that 58% of the culinary industry in Braga district shows the percentage increase in profit year on year by more than 2.5%. That fact shows the good organizational performance of the culinary industry in Braga district. To achieve a good performance in the culinary industry, innovation playing important roles. This research analyzes the effect of innovation on organization performance. By using WarpPLS 3.0 with Structural Equation Model-Partial Least Square (SEM-PLS) method, we found that innovation simultaneously has an impact to organization performance in Braga district. But as partially innovation variables have not significantly effect to organization performance.

Keywords: culinary, innovation, performance organization.