The issues surrounding the performance of small-scale restaurant businesses in Pariaman City prompted this research, which aims to examine Operational Management (OM) problems integrated with the influence of Knowledge Management (KM), Business Environment (BE), and Entrepreneurial Orientation (EO) on small business performance. This study employs a mixed-method approach, combining quantitative and qualitative research. Data was collected through Likert-scale questionnaires (91 respondents) and interviews with relevant informants. The results indicate that: (KM) has a positive and significant effect on Performance. (BE) has a positive and significant effect on Performance. (EO) has a positive and significant effect on Performance. The R² value of 0.795 for the Performance, the "good" category, indicating that approximately 79.5% of the variance in the dependent variable can be explained by the independent variables in the model. The low knowledge creation indicator in (KM) correlates with the need for supervision in business performance, reflecting that poor knowledge-sharing habits create information gaps among employees, leading to weak compliance with operational procedures. The low competition level indicator in (BE) relates to supervision needs in performance, suggesting that restaurants lack creative initiatives, neglect quality control, and fail to evaluate or innovate, increasing the risk of failure. The low innovation indicator in (EO) ties to supervision needs, indicating that a lack of innovative spirit affects fundamental aspects like hygiene and product quality.
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