Innovation capability and risk attitude mediate the effects of knowledge management and financial literacy on MSME performance

Meldona, Meldona ORCID: https://orcid.org/0000-0002-1787-4818, Soetjipto, Budi Eko ORCID: https://orcid.org/0000-0002-1170-2986, Wardoyo, Cipto ORCID: https://orcid.org/0000-0002-8580-0458, Hermawan, Agus and Utaberta, Nangkula (2023) Innovation capability and risk attitude mediate the effects of knowledge management and financial literacy on MSME performance. Journal of Social Economics Research, 10 (4). pp. 194-214. ISSN 2312-6264

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Abstract

Halal micro, small and medium enterprises (MSMEs) play an important role in the
economy, supporting the rapid development of the world's halal industry. The
performance of halal MSMEs is influenced by knowledge management and financial
literacy. Based on knowledge-based theory, which focuses on internal factors to explain
business strategies, innovation capabilities and risk attitudes can mediate the influence
of knowledge management and financial literacy on the performance of halal MSMEs.
Data collected using quantitative proximity from a sample of 195 owners of halal
MSMEs in Malang Raya, Indonesia, was analyzed using structural equation modeling
(SEM). The findings showed that knowledge management and financial literacy affect
the performance of MSMEs. The innovation ability and risk attitude of MSME owners
mediate the effects of knowledge management and financial literacy on the performance
of MSMEs. When knowledge is managed effectively, it creates unique capabilities that
contribute to improved performance through innovation, realized through innovative
products, and risk attitude, realized through optimized opportunities.

Item Type:	Journal Article
Keywords:	Financial literacy, Innovation ability, Knowledge management MSME performance, Risk attitude
Subjects:	15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1503 Business and Management > 150301 Business Information Management (incl. Records, Knowledge and Information Management, and Intelligence) 15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1503 Business and Management > 150399 Business and Management not elsewhere classified 15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1599 Other Commerce, Management, Tourism and Services
Divisions:	Faculty of Economics > Department of Accounting
Depositing User:	Meldona Meldona
Date Deposited:	04 Jun 2024 14:48

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