THE ROLE OF KNOWLEDGE CREATION IN MEDIATING THE EFFECT OF NETWORK CAPABILITY ON PERFORMANCE OF MICRO, SMALL, AND MEDIUM ENTERPRISES

Abstract

Performance has received special attention in the context of Micro, Small, and Medium Enterprises (MSMEs) due to its important role in enhancing an organization's competitive advantage. This study aims to identify predictors of MSME performance. This study used a survey method with 240 respondents. We analyzed the data using Smart-PLS (Partial Least Square) for Structural Equation Modelling (SEM). The results show that Network Capability and Knowledge Creation positively affect MSME performance. Furthermore, Knowledge Creation acts as a mediator between them. This research provides further suggestions on how MSME owners can improve performance in their MSMEs.