The Effects of Knowledge Acquisition and Knowledge Application on MSME Competitiveness: A Structural Equation Modeling Approach
Abstract
Knowledge has become a strategic resource for enhancing the competitiveness of Micro, Small, and Medium Enterprises (MSMEs) in an increasingly dynamic business environment. This study examines the effects of Knowledge Acquisition and Knowledge Application on MSME Competitiveness through the mediating role of Knowledge Management. A quantitative explanatory approach was employed using a survey of 160 MSME owners and managers from various business sectors in Kerinci Regency, Indonesia. Data were collected using structured questionnaires and analyzed through Structural Equation Modeling (SEM) with AMOS. The results indicate that the proposed model demonstrates a satisfactory goodness-of-fit, confirming its suitability for hypothesis testing. Knowledge Acquisition and Knowledge Application significantly strengthen Knowledge Management, while Knowledge Management exerts the strongest influence on MSME Competitiveness. In addition, both Knowledge Acquisition and Knowledge Application directly contribute to competitiveness, indicating that knowledge resources enhance business performance both directly and indirectly through effective knowledge management. This study contributes to the knowledge management literature by validating an integrated structural model within the context of mixed-sector MSMEs in a developing regional economy. Practically, the findings provide insights for policymakers and business support institutions to design capacity-building programs that strengthen knowledge management practices and improve the long-term competitiveness of MSMEs.
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