Title: The Influence of Knowledge Management, Product Innovation and Process Innovation on Business Performance in the Makassar Bugis Silk Business.
Author: Kherayani Nur
Item Type : Thesis (Thesis)
Affiliations: Doctoral Study Program in Management Science, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia
Publisher: Universitas Airlangga
Abstract
Knowledge Management (KM) plays an important role in facilitating important processes in organizations, namely the learning process. Knowledge management can increase the amount of knowledge required for organizational members and facilitate the rapid dissemination of knowledge within the organization. Human resources are needed in the creative industry to improve business management capabilities, so that creative economic activities can be optimized and open up opportunities for independent business. Competencies are skills that enable companies to achieve basic customer benefits through the formation, improvement, renewal and use of resources that lead to increased business performance. Knowledge management is the main vehicle for organizations to achieve their goals and to compete well (Zaied, 2012). Innovation is an inseparable component of company strategy for several reasons such as to implement more productive manufacturing processes, to perform better in the market, to gain a good name in customer perception and as a result to improve business performance. Meng and Brown (2018), stated that the goal of innovation is to improve performance. Companies benefit from improved performance through continuous innovation. The silk woven fabric craft industry is one of the local wisdom of the Bugis tribe in Wajo Regency. Silk woven fabric is the pride of the Bugis people and was previously only used by the nobility. However, as time has become more modern, now silk can be used by all groups. Silk is an ancestral heritage whose existence must be preserved by future generations. However, in its development, silk woven fabric has faced challenges in terms of product innovation, production processes and industrial technology that are more advanced and capital intensive. This condition is a dilemma for the local Bugis silk industry as an effort to preserve culture and fight against the forces of modern industry. The population in this research is SME silk business units in Wajo Regency, 154 silk SME business units in Wajo Regency as the unit of analysis. The sampling technique used in this research was accidental sampling. This research uses four variables, each variable has several indicators. The variables in this research are, knowledge management, product innovation, process innovation, business performance. The analysis technique used in this research is Structural Equation Modeling (SEM). The results of this research show that knowledge management has a positive effect on product innovation. This indicates that product innovation will be better if knowledge management is implemented in a company. Knowledge management influences process innovation. The better the knowledge management application, the better the process innovation in a company will be. Knowledge management has a positive effect on business performance. Thus, implementing good Knowledge Management will be able to improve company performance. Product innovation has a positive effect on business performance. This means that the better the product innovation, the better the business performance. Process innovation has a positive effect on business performance. Thus, the better the process innovation, the better the business performance. The five hypotheses proposed in this research are acceptable. The research implications in this study have two implications, namely: Theoretical Implications, namely: knowledge management can be implemented in SMEs, Knowledge management has a positive effect on product innovation, process innovation and business performance; Product innovation and process innovation have a positive effect on business performance. Practical Implications, namely: innovation is very important in the development of a company. SMEs must not stop innovating. To improve the performance of silk SME businesses. SMEs must always improve product innovation and process innovation. Silk cloth weaving activities are the main commodity of the region and are one of the cultural heritages, for this reason awareness and love must be instilled in preserving, developing, maintaining and improving the quality and quality of Bugis silk cloth. The knowledge possessed by each human resource separately does not guarantee the creation of innovation because it is only limited as potential. Empowerment carried out by management is important so that the knowledge within each employee can be synergized into a whole new idea, and all of it is contributed to the company as a product innovation. The most decisive effort to carry out business activities and increase competitiveness is none other than through empowering the company's innovation capabilities.
Keywords: Knowledge Management, Product Innovation, Process Innovation, Business Performance
Sources: http://repository.unair.ac.id/94320/
