EFFECTS OF BUSINESS CREATIVITY AND TECHNOLOGICAL CAPACITY ON PRODUCTIVITY AND EMPLOYMENT (A Study of Small Blacksmithing Industries in East Java Province)

This study aims to examine the condition of small industry blacksmithing that specialized in producing agricultural tools that are needed by traditional farmers in East Java Province during November 2016 to November 2017. Surveys with questionnaires about business creativity, technological capacity, business productivity, and employment were tested for 110 Blacksmithing small industry  in East Java Province. Partial Least Square Analysis as the core analysis to test the hypothesis. The results show that business creativity and technological capacity have a significant effect on business productivity and Employment.