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All Journal Stability: Journal of Management and Business
Ahmad Hafiyyan Shibghatalloh
Universitas Telogorejo Semarang

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WHEN RESOURCES ARE NOT ENOUGH: LOCAL KNOWLEDGE AS A KEY DRIVER OF SME’s PERFORMANCE Ahmad Hafiyyan Shibghatalloh; Arisanti Ayu Wardhani; Hasan Aminda Syafrudin; Achmad Solechan; Albertus Setyo Sumargo; Lubertus Wahyu Priyo Dwiantoro
STABILITY : Journal of Management and Business Vol. 8 No. 2 (2025): Vol 8 No 2 (2025)
Publisher : Universitas PGRI Semarang

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.26877/yp5crx85

Abstract

This study aims to examine the relationships between resources, local knowledge, and SME’s performance by integrating the Resource-Based View and Knowledge-Based View perspectives. A quantitative cross-sectional approach was employed using primary data collected through a structured questionnaire. The study was conducted among batik MSMEs in Pekalongan, Central Java, Indonesia. A purposive sampling technique was applied with specific criteria. A total of 100 MSMEs were selected as the research sample. Data analysis was carried out using (PLS-SEM) with SmartPLS. The results show that resources do not have a significant direct effect on MSME performance, indicating that resource availability alone is insufficient to improve business outcomes. However, resources have a significant positive effect on local knowledge, and local knowledge significantly influences MSME performance. Furthermore, the mediation analysis confirms that local knowledge fully mediates the relationship between resources and MSME performance.
Co-Authors Achmad Solechan Albertus Setyo Sumargo Arisanti Ayu Wardhani Hasan Aminda Syafrudin Lubertus Wahyu Priyo Dwiantoro