The Role of Capability in Mediating Influences Business Orientation, Competence And Marketing Knowledge of Performance Small and Medium Business (UMKM)

Abstract

This research was conducted based on differences in the focus of discussion about entrepreneurial orientation, competence, marketing knowledge. UMKM capability and performance. In addition, there are also research problems (research problems) about the decline in the development of the cake trade industry in Gianyar Regency in 2018. This research was conducted on MSME entrepreneurs in the cake trade industry in Gianyar Regency with a population and a sample of 55 MSMEs. All data obtained from the questionnaire distribution is feasible to use, then analyzed using PLS 3.0. The results of the study provide that entrepreneurial orientation has a positive and significant effect on capability, competence has a positive and significant effect on capability, marketing knowledge has a positive and significant effect on capability, entrepreneurial orientation has a positive and significant effect on MSME performance, competence has a positive and significant effect on MSME performance, marketing knowledge has a positive and significant effect on MSME performance, capability has a positive and significant effect on MSME performance, entrepreneurial orientation has a positive and significant effect on MSME performance with capabilities as a mediating variable, competence has a positive and significant effect on MSME performance with capabilities as a mediating variable, marketing knowledge a positive and significant effect on the performance of MSMEs with capabilities as a mediating variable. The implication of this research is that capability is able to mediate the variables of entrepreneurial orientation, competence, marketing knowledge on MSME performance.