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Micro, Small, and Medium Enterprises (MSMEs) are vital to the national economy, yet many face substantial challenges related to performance and revenue decline. While recent research on knowledge management (KM) predominantly centers on large organizations, it often overlooks the unique obstacles that MSMEs encounter, thus limiting the relevance of such findings across different industry sectors. This study addresses this research gap by exploring the mediating roles of product and process innovation in the relationship between KM and the operational performance of MSMEs. A survey conducted with 100 MSMEs in Yogyakarta, Indonesia, provided the empirical data for this research. The results underscore the pivotal role of KM in enhancing MSMEs’ operational performance, demonstrating its strong and significant impact. Interestingly, among the two innovation variables examined, only one was confirmed as a significant mediator in the KM-operational performance link, and even then, its influence was less pronounced than the direct impact of KM. This study offers valuable insights for both researchers and practitioners on optimizing KM practices to enhance operational performance in MSMEs.

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Play the Second Fiddle: Examining the Role of Innovation in Knowledge Management-Operational Performance Relationship

  • 会议论文

  • 发表日期：

    2025年

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  • Baziedy Aditya Darmawan,
  • Rizqa Mutiara Dinza Anugrahani

摘要

Micro, Small, and Medium Enterprises (MSMEs) are vital to the national economy, yet many face substantial challenges related to performance and revenue decline. While recent research on knowledge management (KM) predominantly centers on large organizations, it often overlooks the unique obstacles that MSMEs encounter, thus limiting the relevance of such findings across different industry sectors. This study addresses this research gap by exploring the mediating roles of product and process innovation in the relationship between KM and the operational performance of MSMEs. A survey conducted with 100 MSMEs in Yogyakarta, Indonesia, provided the empirical data for this research. The results underscore the pivotal role of KM in enhancing MSMEs’ operational performance, demonstrating its strong and significant impact. Interestingly, among the two innovation variables examined, only one was confirmed as a significant mediator in the KM-operational performance link, and even then, its influence was less pronounced than the direct impact of KM. This study offers valuable insights for both researchers and practitioners on optimizing KM practices to enhance operational performance in MSMEs.