Proceedings of the 1st International Conference on Islamic Civilization, ICIC 2020, 27th August 2020, Semarang, Indonesia

Research Article

The Role of Network Capability and Knowledge Creation in Improving SMEs Business Performance in Indonesia

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  • @INPROCEEDINGS{10.4108/eai.27-8-2020.2303273,
        author={Heru Sulistyo},
        title={The Role of Network Capability and Knowledge Creation in Improving SMEs Business Performance in Indonesia},
        proceedings={Proceedings of the 1st International Conference on Islamic Civilization, ICIC 2020, 27th August 2020, Semarang, Indonesia},
        publisher={EAI},
        proceedings_a={ICIC},
        year={2020},
        month={12},
        keywords={knowledge creation network capability innovation capabilities business performance competitive advantage},
        doi={10.4108/eai.27-8-2020.2303273}
    }
    
  • Heru Sulistyo
    Year: 2020
    The Role of Network Capability and Knowledge Creation in Improving SMEs Business Performance in Indonesia
    ICIC
    EAI
    DOI: 10.4108/eai.27-8-2020.2303273
Heru Sulistyo1,*
  • 1: Universitas Islam Sultan Agung Semarang, Indonesia
*Contact email: heru@unissula.ac.id

Abstract

IKM or Small and Medium Industry (SMI) of fashion is one of the most developed creative industries in Indonesia and is able to make a significant contribution to Indonesia's GDP (Gross Domestic Product). However, the high growth of SMIs has not been able to create a sustainable competitive advantage. Some of the factors that become weaknesses include the low level of knowledge creation and network capability which has an impact on the creation of innovation and business performance of SMEs (Small and Medium Enterprises). This study aims to examine the role of network capability and knowledge creation in increasing innovation and competitive advantage of SMEs. The sample in this study was the SMI creative fashion industry in Jepara and Pekalongan districts as many as 200 respondents. The data collection method used a questionnaire that is distributed to SMI owners. Data analysis was performed using descriptive statistics and structural equation modeling with the AMOS program.