The Impact of Knowledge Management on SMEs Performance in the City of Bandung
Ardi Apriliadi1, Adman2
1Ardi Apriliadi, Indonesia Endowment Fund for Education (LPDP), Full Time Students, Master of Management Science Program, Universitas Padjadjaran.
2Adman, Lecturer, Faculty of Economicsand Business Education, Universitas Pendidikan Indonesia.
Manuscript received on 23 November 2019 | Revised Manuscript received on 04 December 2019 | Manuscript Published on 10 December 2019 | PP: 550-557 | Volume-8 Issue-3S2 October 2019 | Retrieval Number: C11231083S219/2019©BEIESP | DOI: 10.35940/ijrte.C1123.1083S219
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: Micro, small and medium enterprises (SMEs) have a large role in economic activities. SMEs are the largest provider of employment, an important player in the development of local, national and international economic activities and community empowerment. Lacking of knowledge about the latest production technology and how to run quality control on products, meaning that here knowledge has an important role for the performance of SMEs. Therefore, the core of the research study is focused on one of the factors that influence the performance of SMEs, namely knowledge management. Based on this, the main problem revealed in this study is how the impact of knowledge management on the performance of SMEs. This research was conducted on SMEs in the city of Bandung. This study consisted of two variables, namely Knowledge Management (X) and SMEs Performance (Y). Knowledge management in this study consisted of four processes (Knowledge creation, knowledge storage, knowledge transfer/sharing and knowledge utilization) while SMEs Performance used a balanced scorecard approach (financial perspective, internal perspective of business processes, customer and stakeholder perspectives, and learning and growth perspective).The method used in this study is a survey method in the form of an explanatory survey. Data collection techniques by means of questionnaires with Likert scale models, which were analyzed using simple regression. And the respondents in this study were SMEs in Bandung, which numbered 99 UKM. Based on the results of the study, it can be seen that knowledge management has a positive and significant influence on the performance of SMEs in the city of Bandung. Where Knowledge Management Capabilities (Knowledge creation, acquisition, knowledge storage, knowledge transfer / sharing, knowledge utilization) are proven to have a positive and significant influence on the performance of SMEs (financial perspective, internal perspective of business processes, customer and stakeholder perspectives, and learning and growth perspective).
Keywords: Knowledge Management, Knowledge Management Capabilities, SMEs Performance.
Scope of the Article: Social Sciences