Examining the impact of knowledge management use and innovation on business performance of MSMES in the digital age. Case study MSMES in Indonesia

Micro, small, and medium enterprises (MSMEs) play a crucial part in augmenting a nation’s gross domestic product (GDP). Nevertheless, MSMEs continue to encounter obstacles, particularly in utilizing knowledge management to enhance their business performance. Hence, this study aims to investigate the...

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Main Authors: Christian Wiradendi Wolor, Faerozh Madli, Mahmoud Ali Rababah, Hasan Mukhibad, Wong Chee Hoo
Format: Article
Language:en
Published: Journal of Sustainability Research 2024
Subjects:
Online Access:https://eprints.ums.edu.my/id/eprint/43377/1/FULL%20TEXT.pdf
https://eprints.ums.edu.my/id/eprint/43377/
https://doi.org/10.20900/jsr20240070
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author Christian Wiradendi Wolor
Faerozh Madli
Mahmoud Ali Rababah
Hasan Mukhibad
Wong Chee Hoo
author_facet Christian Wiradendi Wolor
Faerozh Madli
Mahmoud Ali Rababah
Hasan Mukhibad
Wong Chee Hoo
author_sort Christian Wiradendi Wolor
building UMS Library
collection Institutional Repository
content_provider Universiti Malaysia Sabah
content_source UMS Institutional Repository
continent Asia
country Malaysia
description Micro, small, and medium enterprises (MSMEs) play a crucial part in augmenting a nation’s gross domestic product (GDP). Nevertheless, MSMEs continue to encounter obstacles, particularly in utilizing knowledge management to enhance their business performance. Hence, this study aims to investigate the correlation between the utilization of knowledge management for innovation and its influence on the performance of MSMEs, addressing an unexplored area of research. Data was collected through a field survey with a sample of 371 respondents from MSME business actors in Indonesia. The results of this research showed that the implementation of knowledge management does not directly affect the performance of small and medium-sized enterprises (SMEs). However, knowledge management positively influences innovation, which in turn positively affects the performance of these enterprises. The study makes a theoretical addition to the field of science and practice for MSMEs. The theoretical importance of this research lies in understanding that knowledge management alone does not lead to improved performance of SMEs without innovation. This underscores the importance of knowledge management in fostering innovation, which is essential for enhancing business performance amid rapid technological advancements. Practically, the findings suggest that SMEs should begin by identifying critical types of knowledge necessary for their operations and innovations, storing this knowledge systematically in accessible databases
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institution Universiti Malaysia Sabah
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spelling my.ums.eprints-433772025-04-07T04:11:45Z https://eprints.ums.edu.my/id/eprint/43377/ Examining the impact of knowledge management use and innovation on business performance of MSMES in the digital age. Case study MSMES in Indonesia Christian Wiradendi Wolor Faerozh Madli Mahmoud Ali Rababah Hasan Mukhibad Wong Chee Hoo HD28-70 Management. Industrial management HF5546-5548.6 Office management Micro, small, and medium enterprises (MSMEs) play a crucial part in augmenting a nation’s gross domestic product (GDP). Nevertheless, MSMEs continue to encounter obstacles, particularly in utilizing knowledge management to enhance their business performance. Hence, this study aims to investigate the correlation between the utilization of knowledge management for innovation and its influence on the performance of MSMEs, addressing an unexplored area of research. Data was collected through a field survey with a sample of 371 respondents from MSME business actors in Indonesia. The results of this research showed that the implementation of knowledge management does not directly affect the performance of small and medium-sized enterprises (SMEs). However, knowledge management positively influences innovation, which in turn positively affects the performance of these enterprises. The study makes a theoretical addition to the field of science and practice for MSMEs. The theoretical importance of this research lies in understanding that knowledge management alone does not lead to improved performance of SMEs without innovation. This underscores the importance of knowledge management in fostering innovation, which is essential for enhancing business performance amid rapid technological advancements. Practically, the findings suggest that SMEs should begin by identifying critical types of knowledge necessary for their operations and innovations, storing this knowledge systematically in accessible databases Journal of Sustainability Research 2024 Article NonPeerReviewed text en https://eprints.ums.edu.my/id/eprint/43377/1/FULL%20TEXT.pdf Christian Wiradendi Wolor and Faerozh Madli and Mahmoud Ali Rababah and Hasan Mukhibad and Wong Chee Hoo (2024) Examining the impact of knowledge management use and innovation on business performance of MSMES in the digital age. Case study MSMES in Indonesia. Journal of Sustainability Research, 6 (4). pp. 1-18. https://doi.org/10.20900/jsr20240070
spellingShingle HD28-70 Management. Industrial management
HF5546-5548.6 Office management
Christian Wiradendi Wolor
Faerozh Madli
Mahmoud Ali Rababah
Hasan Mukhibad
Wong Chee Hoo
Examining the impact of knowledge management use and innovation on business performance of MSMES in the digital age. Case study MSMES in Indonesia
title Examining the impact of knowledge management use and innovation on business performance of MSMES in the digital age. Case study MSMES in Indonesia
title_full Examining the impact of knowledge management use and innovation on business performance of MSMES in the digital age. Case study MSMES in Indonesia
title_fullStr Examining the impact of knowledge management use and innovation on business performance of MSMES in the digital age. Case study MSMES in Indonesia
title_full_unstemmed Examining the impact of knowledge management use and innovation on business performance of MSMES in the digital age. Case study MSMES in Indonesia
title_short Examining the impact of knowledge management use and innovation on business performance of MSMES in the digital age. Case study MSMES in Indonesia
title_sort examining the impact of knowledge management use and innovation on business performance of msmes in the digital age. case study msmes in indonesia
topic HD28-70 Management. Industrial management
HF5546-5548.6 Office management
url https://eprints.ums.edu.my/id/eprint/43377/1/FULL%20TEXT.pdf
https://eprints.ums.edu.my/id/eprint/43377/
https://doi.org/10.20900/jsr20240070
url_provider http://eprints.ums.edu.my/