Knowledge Sharing and Business Performance: The Role of Innovative Behavior

Abstract

The purpose of this study was to analyze the antecedent variables that affect business performance in the handicraft sector SMEs in Central Java. The population of this study are all owners of handicraft SMEs in Central Java. Samples were taken using purposive sampling method. Data were collected through questionnaires, and processed using Structural Equation Modeling analysis. The loading factor value of each indicator on the latent variable shows a significant value. Based on the results showed a significant positive effect on the direct effect of knowledge sharing on innovative behavior, and innovative performance behavior on business performance. The direct relationship of knowledge sharing on innovative behavior shows the dominant influence value. The indirect effect of knowledge sharing on MSME business performance is mediated by innovative behavior. The results of this study contribute to strengthening social capital theory, the concept of organizational citizenship behavior, resource based view and knowledge based view theory.