The Power of Inter-Stakeholder Relationships in the Absorption of SME Knowledge in the Covid-19 Era: Mixed Methods Perspective
Abstract
Abstract.The purpose of this study is to analyze the antecedents of SME performance factors from a knowledge perspective and explore the contribution of key stakeholders and their roles in improving the performance of fashion UKM in Central Java and explore how fashion UKM interpret knowledge and how knowledge absorption is carried out. In the current COVID-19 pandemic era, all business activities have shifted to online. This change has had a serious impact on SME actors. This study helps SME actors improve their organizational performance in the COVID-19 pandemic era by utilizing knowledge as the main asset driving innovation. SME actors can gain knowledge through relationships between stakeholders and the ability to absorb knowledge that can improve SME performance in the COVID-19 pandemic era. The strength of relationships between stakeholders has a positive impact on knowledge contributions. The knowledge received is used as the main asset in improving innovation performance and SME performance. This must be associated with the role of absorptive capacity as a moderation to strengthen the relationship between knowledge transfer and innovation. The method used is mixed methods with a concurrent embedded design type. The sample in this study was 127 (questionnaires) and 8 (interviews) in UKM in the fashion sector in Central Java, especially in the cities of Semarang, Pekalongan, Rembang, and Jepara that have been operating for at least three years, using digital technology for their business activities, have a turnover of at least ten million, and have at least 5 employees. The data collection method used was through questionnaires and interviews which would then be analyzed using statistical and thematic analysis techniques. The results of the study showed that the strength of the relationship between stakeholders facilitates the process of donating knowledge. Knowledge donation has an effect on the creation of innovation that is assisted by the ability to absorb knowledge possessed by UKM. Thus, the role of dynamic stakeholder relationship quality and absorptive capacity can improve SME performance.
Keywords: Absorptive Capacity; Altruistic Knowledge Donating ; COVID-19 pandemic; Dynamic Stakeholder Relationship Quality; Innovation; Organizational.
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