This study aims to analyze the relationships between knowledge diversity, knowledge creation, innovativeness, and sustainable competitive advantage. The respondents of this study were 200 employees from SMEs in Central Java - Indonesia. Data were obtained using the distribution of questionnaires and analyzed by applying structural equation modeling (SEM) with AMOS 20 software. The results revealed that knowledge diversity and knowledge creation had a relation with innovativeness and sustainable competitive advantage. Keywords: knowledge diversity, knowledge creation, innovativeness, sustainable competitive advantage
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