The Effect of Business Knowledge and Self-Confidence on Business Performance With Business Innovation as Mediating Variable Among SMEs in Padang City

Abstract

The era of digitizing the industry 4.0 has an impact on changes in the competence of all organizations, in order to survive and improve the performance of organizations. This study aimed to analyze the impact of business knowledge and self-confidence on business performance with business innovation as mediating variable among SMEs in Padang. This research used 225 Small and Medium Enterprises (SMEs). This research applied the Structural Equation Modeling (SEM) using Amos ’ s version 23. This research concluded that business knowledge, self-confidence, and business innovation factors have significant effect on business performance. Other facts showed that business innovation was proven to mediate and enhance the influence of business knowledge and self-confidence on business performance.