The study aims to analyze the influence of knowledge management on the business performance of micro, small, and medium enterprises (MSMEs) in Indonesia, with green innovation and decision-making as mediating variables. Using a quantitative approach and PLS-SEM method on 300 MSMEs, the analysis results reveal that knowledge management has no significant direct effect on business performance, but has a significant positive effect on green innovation and decision-making. Furthermore, decision-making is found to have a strong positive effect on business performance, while green innovation shows a negative effect on business performance. These findings highlight the central role of decision-making as a key mediator in the relationship between knowledge management and business performance. This study offers practical insights for strengthening knowledge management and decision-making strategies in the context of developing resilient and sustainable MSMEs.
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