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Journal : STI Policy and Management Journal

The Role of Knowledge and Innovation Management in MSMEs’ Performance: The Moderating Effect of Firm Size Hardi, Hardi; Suci, Afred; Fauzi, Abu Amar
STI Policy and Management Journal Vol 10, No 2 (2025): STI Policy and Management
Publisher : National Research and Innovation Agency, Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14203/STIPM.2025.421

Abstract

While the effect of knowledge management (KM) in predicting firm innovation and performance has been extensively documented in large enterprises, its dynamics within micro, small, and medium-sized enterprises (MSMEs) are relatively underexplored. The current study surveyed 174 Indonesian MSMEs, employed Hayes PROCESS Macro to investigate the KM-innovation-performance pathways with firm size as a moderator. The findings reveal that medium-sized firms exhibited the greatest KM practices, innovation, and performance. KM significantly enhanced innovation and performance, while innovation had no significant impact. Firm size strengthened the KM-innovation-performance linkage, while the KM-innovation-performance mediation and its size conditional effects were positive yet marginally insignificant. Theoretical and practical contributions are also discussed, and recommendations for further studies are also proposed.