<![CDATA[The creative economy is a rapidly growing sector in Indonesia, contributing 6.54% to GDP in 2022 and reaching a value of Rp 1.28 quadrillion. This research aims to analyze the relationship between creativity, innovation, and business performance in the creative economy. A quantitative approach using a survey method was employed, involving 200 creative economy business actors in Semarang City, with purposive sampling as the sampling technique. A structured Likert-scale questionnaire was used as the research instrument. Data were analyzed using Structural Equation Modeling (SEM) with SmartPLS 3.0. The results show that creativity significantly and positively affects product innovation (? = 0.672, p < 0.001), innovation significantly and positively affects business performance (? = 0.548, p < 0.001), and creativity directly affects business performance (? = 0.384, p < 0.001). These findings demonstrate that creativity and innovation are key factors in improving business performance in the creative economy. In conclusion, creativity serves as both a direct driver of business performance and an indirect driver through innovation, with the indirect effect accounting for 48.9% of the total effect. This confirms that fostering both creativity and systematic innovation management is essential for optimizing performance in the creative economy. This research contributes to the development of innovation management theory and provides practical recommendations for creative economy entrepreneurs.]]>
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