Development of Knowledge Management and Enterprise Orientation in Improving Competitive Advantage and Performance at SMEs in West Java
January 12, 2021
January 30, 2021
The purpose of this study is to analyze is to find, describe, and analyze the development of Knowledge Management and entrepreneurial orientation in increasing competitive advantage and performance in SMEs in West Java. This study uses descriptive and verification methods with the number of analytical observations (research samples) of 200 respondents, who were analyzed by the method of Structural Equation Models (SEM). The results show that Knowledge Management and entrepreneurial orientation have a significant effect on competitive advantage but not on the performance of SMEs in West Java. The results of this research can be useful in the development of management science, especially related to competitive advantage and performance at SMEs through the development of Knowledge Management and entrepreneurial orientation
widodo, djoko setyo, Silitonga, P. E. S., & Santoso, E. (2021). Development of Knowledge Management and Enterprise Orientation in Improving Competitive Advantage and Performance at SMEs in West Java. International Journal Of Management And Economics Invention, 7(1). Retrieved from https://rajournals.in/index.php/ijmei/article/view/622
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6. Covin, Slevin & Schultz, 1994, Implementing strategic missions: Effective strategic, structural, and tactical choices. Journal of Management Studies, 31(4), 481- 503.
7. Fairoz, Mafasiya Fauzul & Takenouchi Hirobumi, 2010, Entrepreneurial Orientation and Business Performance of Small and Medium Scale Enterprises of Hambantota District Sri Lanka, Asian Social Science, Vol. 6, No. 3, 34-46.
8. Ferrera, et al., 2007, Entrepreneurial Orientation as a main resource and capability on Small Firm‟s Growth”, University of Beira Interior
9. Hair, J.F., Anderson, R.E., & Black, W.C., 2006, Multivariate Data Analysis with Reading. Prentice Hall International
10. Halawi, et.al., 2005, Resource-Based View of Knowledge Management for Competitive Advantage” The Electronic Journal of Knowledge Management Volume 3 Issue 2, pp 75-86, available online at www.ejkm.com
11. Hassim, Affendy Abu, Asmat Nizam, Abdul Talib & Abdul Rahim Abu Bakar, 2011, The Effects of Entrepreneurial Orientation on Firm Organisational Innovation and Market Orientation Towards Firm Business Performance, International Conference on Sociality and Economics Development, Vol. 10, 280-284.
12. Hayfa.Y. Abuaddous, Abdullah A.M. Al Sokkar & Blaqees I. Abualodous, 2018, “The Impact of Knowledge Management on Organizational Performance” International Journal of Advanced Computer Science and Applications(IJACSA), 9(4), 2018. http://dx.doi.org/10.14569/IJACSA.2018.090432
13. Hilmi, Mohd Faiz, T Ramayah & Yanti Mustapha, 2011, Product and Process Innovativeness: Evidence From Malaysian SMEs, European Journal of Social Sciences, Vol. 16, No. 4, 547-555.
14. Hult & Ketchen, 2001, Does Market Orientation Matter?: A Test of the Relationship Between Positional Advantage and Performance. Strategic Management Journal, 22, 899-906.
15. Jahanshahi, A.A., Rezaei, M., Nawaser, K., Ranjbar, V., & Pitamber, B.K.. (2012). Analyzing the effects of electronic commerce on organizational performance: Evidence from small and medium enterprises. African Journal of Business Management Vol.6 (15), pp. 6486-6496, 6 June, 2012.
16. James Maina Rugami & Evans Aosa, 2013, Environmental dynamic capabilities and their effect on competitive advantage and firm performance, Prime Journal of Business Administration and Management (BAM) ISSN: 2251-1261. Vol. 3(11), pp. 1239-1243, November 14th, 2013
17. Jantunen et al., 2005, Entrepreneurial Orientation, Dynamic Capabilities and International Performance” Journal of International Entrepreneurship Vol.3 pp 223–243.
18. Jaworski & Kohli, 1993, Market Orientation : Antecedents and. Consequences”, Journal of Marketing, Vol. 57, p.53-70.
19. Kamya, et.al., 2010, Knowledge management and competitive advantage: The interaction effect of market orientation, African Journal of Business Management Vol. 4(14), pp. 2971-2980, 18 October, 2010 Available online at http://www.academicjournals.org/AJBM ISSN 1993-8233 ©2010 Academic Journals
20. Khan, R.A. 2012. Knowledge Management: A Framework for Competitive Advantage. Global Journal for Information Technology and Computer Science, vol. 1 (1).
21. Kiiru et.al., 2013, Mediating effect of strategic orientation on the relationship between dynamic capabilities and competitive advantage of small and medium retail enterprises in Kenya, IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 14, Issue 2 (Nov. - Dec. 2013), PP 64-69
22. Knight, G., 2000, Entrepreneurship and Marketing Strategy: the SME Under Globalization. Journal of International Marketing, ISSN 1069-031X, Vol.8, No.2 (2000)
23. Lee, Tingko & Chu, Wenyi. (2011). Entrepreneurial orientation and competitive advantage: The mediation of resource value and rareness. African journal of business management. 5. 10.5897/AJBM11.1179.
24. Li, Y.H., J.W. Huang & M.T. Tsai, 2009. Entrepreneurial orientation and firm performance: the role of knowledge creation process. Industrial Mark; Manag., 38: 440-449
25. Li, Yong-Hui, Jing-Wen Huang & Mey-Tien Tsai, 2008, Entrepreneurial Orientation and Firm Performance: The Role of Knowledge Creation Process, Industrial Marketing Management (38), 440-449.
26. Lumpkin, G.T., & Dess, G.G, 1996, Clarifying The Entrepreneurial Orientation Construct and Linking it to Firm Performance, Academy of Management Review, 21(1), 135-172.
27. Mahmood & Hanafi, 2013, Entrepreneurial Orientation and Business Performance of Women-Owned Small and Medium Enterprises in Malaysia: Competitive Advantage as a Mediator, International Journal of Business and Social Science Vol. 4 No. 1; January 2013
28. Matsuno, et al., 2002, The Effect of Entrepreneurial Proclivity and Market Orientation on Business Performance. Journal of marketing, 66 (3), 18
29. Meihami, 2014, Knowledge Management a way to gain a competitive advantage in firms (evidence of manufacturing companies), International Letters of Social and Humanistic Sciences3 (2014) 80-91
30. Miller, D., 1983, The correlates of entrepreneurship in three types of firms, Management Science, 29, pp. 770-791.
31. Montoro-Sánchez, A. & Soriano, D.R., 2011, Human resource management and corporate entrepreneurship, International Journal of Manpower, 32 (1), pp.6-13
32. Nasimi et.al., 2013, Knowledge Management And Competitive Advantage For Organizations, Kuwait Chapter of Arabian Journal of Business and Management Review Vol. 2, No.5; Jan. 2013
33. Olaima, D., et.al, 2015, The Influence of Knowledge Management on Organizational Performance in Service Organizations in Jordan, Information and Knowledge Management, ISSN 2224-5758 (Paper) ISSN 2224-896X (Online) Vol.5, No.12, 2015
34. Pension, K., Nyasha, M., et.al., 2013, Impact of Knowledge Management on Organizational Performance: A Case Study of Grain Marketing Board (GMB), Greener Journal of Business and Management Studies ISSN: 2276-7827 Vol. 3 (6), pp. 270-278, August 2013. www.gjournals.org 270 Research Article
35. Phan, P.H., Wright, M., Ucbasaran, D. & Tan, W.L., 2009, Corporate entrepreneurship: Current research and future directions, Journal of Business Venturing, 24 (3), pp. 197-205
36. Porter, 2008, Strategi Bersaing, Teknik Menganalisis Industri dan. Pesaing. Jakarta: Erlangga.
37. Rauch, A., Wiklund, J., Lumpkin, G..T. & Frese, M., 2009, Entrepreneurial orientation and business performance: An assessment of past research and suggestion for the future, Entrepreneurship Theory and Practice, 33 (3), pp. 761-781.
38. Reswanda, 2011, Pengaruh Orientasi Kewirausahaan terhadap Pembelajaran Organisasi, Keunggulan Daya Saing Berkelanjutan dan Kinerja Usaha pada UMKM Kerajinan Kulit Berorientasi Ekspor di Sidoarjo, Jurnal Disertasi - Universitas Airlangga, Maret 2011
39. Risnawati & Noermijati, 2008, Pengaruh Orientasi Kewirausahaan terhadap Kinerja Organisasi Koperasi : Orientasi Pasar sebagai Variabel. Intervening (Studi pada Koperasi Primer di kota Palu, Sulawesi Tengah), jurnal Aplikasi Manajemen Vol 9 No.3
40. Robbins, S. P. & Coulter, M., 2012. Management. New Jersey: Pearson
41. Sampurno, 2010, Manajemen Stratejik: Menciptakan Keunggulan Bersaing yang Berkelanjutan”, Gadjah Mada Iniversity Press
42. Saqib, Muhammad & Udin, Zulkifli & Baluch, Nazim. (2017). The impact of knowledge management on organizational performance in today’s economy. International Journal of Business, Economics and Law Vol. 12, April 2017 (ISSN 2289-1552)
43. Satyendra Singh, et.al., 2006, Knowledge Management Capability and Organizational Performance: A Theoretical Foundation, OLKC 2006 Conference at the University of Warwick, Coventry on 20th - 22nd March 2006
44. Sedigheh Shadfard, Mina Zeinali, & Mustafa Zekalab, 2013, The Comparison Between Knowledge Management And Entrepreneurship Culture on Competitive Advantage In Manufacturing Company of Gilan, Interdisciplinary Journal Of Contemporary Research In Business Vol 5, No 1
45. Shimizu, K., 2011, Risks of Corporate Entrepreneurship: Autonomy and Agency Issues, Organization Science, In Press
46. Sirivanh, et.al., 2014, The Effect of Entrepreneurial Orientation and Competitive Advantage on SMEs’ Growth: A Structural Equation Modeling Study, International Journal of Business and Social Science Vol. 5, No. 6(1); May 2014
47. Solomon, Goosain., 2004, Entrepreneurship and The Impact of Entrepreneurial orientation Training on SMMs In South African Context: A Longitudinal Approach
48. Tri Murni, Taher Alhansji, M. Syafi’ie Idrus, & Zainul Arifin, 2014, The Effect of Entrepreneurial Orientation on the Management Capability and Sustainable Innovation (Study on Batik Small and Medium Enterprises in East Java Indonesia), IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 16, Issue 4. Ver. II (Apr. 2014), PP 16-20
49. Wicklund, J., H. Patzelt & Shepherd, D., 2009, “Building an Integrated Model of Small Business Growth,” Small Busi-ness Economics, Vol. 32, No. 4, pp. 351-374. doi:10.1007/s11187-007-9084-
50. Zack, M., McKeen, J. & Singh, S. (2009), "Knowledge management and organizational performance: an exploratory analysis", Journal of Knowledge Management, Vol. 13 No. 6, pp. 392-409. https://doi.org/10.1108/13673270910997088
51. Zaied, A.N.H. 2012. An Integrated Knowledge Management Capabilities Framework for Assessing Organizational Performance. International Journal Information Technology and Computer Science, vol. 2, 1-10.
52. Zaied, A.N.H., Hussein, G.S., & Hassan, M.M.. 2012. The Role of Knowledge Management in Enhancing Organizational Performance. International Journal Information Engineering and Electronic Business, 2012, vol. 5, 27-35.
53. Zeebaree, Mohammed. (2017). The Impact of Entrepreneurial Orientation on Competitive Advantage Moderated by Financing Support in SME, International Review of Management and Marketing, 2017, 7(1), 43-52.
54. Zhao, Y., Li, Y., Lee, S.H. & Chen, L.B., 2011, Entrepreneurial Orientation, Organizational Learning, and Performance: Evidence from China, Entrepreneurship Theory and Practice, 35 (2), pp. 293-317.
55. Zhou K.Z., Chi Kin Yim & David K. Tse, 2005, The Effect of Strategic Orientations on Technology and Market-Based Breakthrough Innovations. Journal of Marketing, Vol.69 (April), pp. 42-60.
2. Barney, J. 2007. Gaining and sustaining competitive advantage (3rd Edition). Upper SaddleRiver, N.J: Pearson Prentice Hall
3. BPS Jawa Barat, 2016, SE2016, Bapan Pusat Statistik Jawa Barat, Bandung
4. Covin, J.G. and Slevin, D.P., 1989, Strategic management of small firms in hostile and benign environments. Strategic Management Journal, 10 (1), pp. 75–87
5. Covin, J.G., Green, K.M. & Slevin, D.P., 2006, Strategic process effects on the entrepreneurial orientation-sales growth rate relationship, Entrepreneurship Theory and Practice, 30 (1), pp. 57-81
6. Covin, Slevin & Schultz, 1994, Implementing strategic missions: Effective strategic, structural, and tactical choices. Journal of Management Studies, 31(4), 481- 503.
7. Fairoz, Mafasiya Fauzul & Takenouchi Hirobumi, 2010, Entrepreneurial Orientation and Business Performance of Small and Medium Scale Enterprises of Hambantota District Sri Lanka, Asian Social Science, Vol. 6, No. 3, 34-46.
8. Ferrera, et al., 2007, Entrepreneurial Orientation as a main resource and capability on Small Firm‟s Growth”, University of Beira Interior
9. Hair, J.F., Anderson, R.E., & Black, W.C., 2006, Multivariate Data Analysis with Reading. Prentice Hall International
10. Halawi, et.al., 2005, Resource-Based View of Knowledge Management for Competitive Advantage” The Electronic Journal of Knowledge Management Volume 3 Issue 2, pp 75-86, available online at www.ejkm.com
11. Hassim, Affendy Abu, Asmat Nizam, Abdul Talib & Abdul Rahim Abu Bakar, 2011, The Effects of Entrepreneurial Orientation on Firm Organisational Innovation and Market Orientation Towards Firm Business Performance, International Conference on Sociality and Economics Development, Vol. 10, 280-284.
12. Hayfa.Y. Abuaddous, Abdullah A.M. Al Sokkar & Blaqees I. Abualodous, 2018, “The Impact of Knowledge Management on Organizational Performance” International Journal of Advanced Computer Science and Applications(IJACSA), 9(4), 2018. http://dx.doi.org/10.14569/IJACSA.2018.090432
13. Hilmi, Mohd Faiz, T Ramayah & Yanti Mustapha, 2011, Product and Process Innovativeness: Evidence From Malaysian SMEs, European Journal of Social Sciences, Vol. 16, No. 4, 547-555.
14. Hult & Ketchen, 2001, Does Market Orientation Matter?: A Test of the Relationship Between Positional Advantage and Performance. Strategic Management Journal, 22, 899-906.
15. Jahanshahi, A.A., Rezaei, M., Nawaser, K., Ranjbar, V., & Pitamber, B.K.. (2012). Analyzing the effects of electronic commerce on organizational performance: Evidence from small and medium enterprises. African Journal of Business Management Vol.6 (15), pp. 6486-6496, 6 June, 2012.
16. James Maina Rugami & Evans Aosa, 2013, Environmental dynamic capabilities and their effect on competitive advantage and firm performance, Prime Journal of Business Administration and Management (BAM) ISSN: 2251-1261. Vol. 3(11), pp. 1239-1243, November 14th, 2013
17. Jantunen et al., 2005, Entrepreneurial Orientation, Dynamic Capabilities and International Performance” Journal of International Entrepreneurship Vol.3 pp 223–243.
18. Jaworski & Kohli, 1993, Market Orientation : Antecedents and. Consequences”, Journal of Marketing, Vol. 57, p.53-70.
19. Kamya, et.al., 2010, Knowledge management and competitive advantage: The interaction effect of market orientation, African Journal of Business Management Vol. 4(14), pp. 2971-2980, 18 October, 2010 Available online at http://www.academicjournals.org/AJBM ISSN 1993-8233 ©2010 Academic Journals
20. Khan, R.A. 2012. Knowledge Management: A Framework for Competitive Advantage. Global Journal for Information Technology and Computer Science, vol. 1 (1).
21. Kiiru et.al., 2013, Mediating effect of strategic orientation on the relationship between dynamic capabilities and competitive advantage of small and medium retail enterprises in Kenya, IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 14, Issue 2 (Nov. - Dec. 2013), PP 64-69
22. Knight, G., 2000, Entrepreneurship and Marketing Strategy: the SME Under Globalization. Journal of International Marketing, ISSN 1069-031X, Vol.8, No.2 (2000)
23. Lee, Tingko & Chu, Wenyi. (2011). Entrepreneurial orientation and competitive advantage: The mediation of resource value and rareness. African journal of business management. 5. 10.5897/AJBM11.1179.
24. Li, Y.H., J.W. Huang & M.T. Tsai, 2009. Entrepreneurial orientation and firm performance: the role of knowledge creation process. Industrial Mark; Manag., 38: 440-449
25. Li, Yong-Hui, Jing-Wen Huang & Mey-Tien Tsai, 2008, Entrepreneurial Orientation and Firm Performance: The Role of Knowledge Creation Process, Industrial Marketing Management (38), 440-449.
26. Lumpkin, G.T., & Dess, G.G, 1996, Clarifying The Entrepreneurial Orientation Construct and Linking it to Firm Performance, Academy of Management Review, 21(1), 135-172.
27. Mahmood & Hanafi, 2013, Entrepreneurial Orientation and Business Performance of Women-Owned Small and Medium Enterprises in Malaysia: Competitive Advantage as a Mediator, International Journal of Business and Social Science Vol. 4 No. 1; January 2013
28. Matsuno, et al., 2002, The Effect of Entrepreneurial Proclivity and Market Orientation on Business Performance. Journal of marketing, 66 (3), 18
29. Meihami, 2014, Knowledge Management a way to gain a competitive advantage in firms (evidence of manufacturing companies), International Letters of Social and Humanistic Sciences3 (2014) 80-91
30. Miller, D., 1983, The correlates of entrepreneurship in three types of firms, Management Science, 29, pp. 770-791.
31. Montoro-Sánchez, A. & Soriano, D.R., 2011, Human resource management and corporate entrepreneurship, International Journal of Manpower, 32 (1), pp.6-13
32. Nasimi et.al., 2013, Knowledge Management And Competitive Advantage For Organizations, Kuwait Chapter of Arabian Journal of Business and Management Review Vol. 2, No.5; Jan. 2013
33. Olaima, D., et.al, 2015, The Influence of Knowledge Management on Organizational Performance in Service Organizations in Jordan, Information and Knowledge Management, ISSN 2224-5758 (Paper) ISSN 2224-896X (Online) Vol.5, No.12, 2015
34. Pension, K., Nyasha, M., et.al., 2013, Impact of Knowledge Management on Organizational Performance: A Case Study of Grain Marketing Board (GMB), Greener Journal of Business and Management Studies ISSN: 2276-7827 Vol. 3 (6), pp. 270-278, August 2013. www.gjournals.org 270 Research Article
35. Phan, P.H., Wright, M., Ucbasaran, D. & Tan, W.L., 2009, Corporate entrepreneurship: Current research and future directions, Journal of Business Venturing, 24 (3), pp. 197-205
36. Porter, 2008, Strategi Bersaing, Teknik Menganalisis Industri dan. Pesaing. Jakarta: Erlangga.
37. Rauch, A., Wiklund, J., Lumpkin, G..T. & Frese, M., 2009, Entrepreneurial orientation and business performance: An assessment of past research and suggestion for the future, Entrepreneurship Theory and Practice, 33 (3), pp. 761-781.
38. Reswanda, 2011, Pengaruh Orientasi Kewirausahaan terhadap Pembelajaran Organisasi, Keunggulan Daya Saing Berkelanjutan dan Kinerja Usaha pada UMKM Kerajinan Kulit Berorientasi Ekspor di Sidoarjo, Jurnal Disertasi - Universitas Airlangga, Maret 2011
39. Risnawati & Noermijati, 2008, Pengaruh Orientasi Kewirausahaan terhadap Kinerja Organisasi Koperasi : Orientasi Pasar sebagai Variabel. Intervening (Studi pada Koperasi Primer di kota Palu, Sulawesi Tengah), jurnal Aplikasi Manajemen Vol 9 No.3
40. Robbins, S. P. & Coulter, M., 2012. Management. New Jersey: Pearson
41. Sampurno, 2010, Manajemen Stratejik: Menciptakan Keunggulan Bersaing yang Berkelanjutan”, Gadjah Mada Iniversity Press
42. Saqib, Muhammad & Udin, Zulkifli & Baluch, Nazim. (2017). The impact of knowledge management on organizational performance in today’s economy. International Journal of Business, Economics and Law Vol. 12, April 2017 (ISSN 2289-1552)
43. Satyendra Singh, et.al., 2006, Knowledge Management Capability and Organizational Performance: A Theoretical Foundation, OLKC 2006 Conference at the University of Warwick, Coventry on 20th - 22nd March 2006
44. Sedigheh Shadfard, Mina Zeinali, & Mustafa Zekalab, 2013, The Comparison Between Knowledge Management And Entrepreneurship Culture on Competitive Advantage In Manufacturing Company of Gilan, Interdisciplinary Journal Of Contemporary Research In Business Vol 5, No 1
45. Shimizu, K., 2011, Risks of Corporate Entrepreneurship: Autonomy and Agency Issues, Organization Science, In Press
46. Sirivanh, et.al., 2014, The Effect of Entrepreneurial Orientation and Competitive Advantage on SMEs’ Growth: A Structural Equation Modeling Study, International Journal of Business and Social Science Vol. 5, No. 6(1); May 2014
47. Solomon, Goosain., 2004, Entrepreneurship and The Impact of Entrepreneurial orientation Training on SMMs In South African Context: A Longitudinal Approach
48. Tri Murni, Taher Alhansji, M. Syafi’ie Idrus, & Zainul Arifin, 2014, The Effect of Entrepreneurial Orientation on the Management Capability and Sustainable Innovation (Study on Batik Small and Medium Enterprises in East Java Indonesia), IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 16, Issue 4. Ver. II (Apr. 2014), PP 16-20
49. Wicklund, J., H. Patzelt & Shepherd, D., 2009, “Building an Integrated Model of Small Business Growth,” Small Busi-ness Economics, Vol. 32, No. 4, pp. 351-374. doi:10.1007/s11187-007-9084-
50. Zack, M., McKeen, J. & Singh, S. (2009), "Knowledge management and organizational performance: an exploratory analysis", Journal of Knowledge Management, Vol. 13 No. 6, pp. 392-409. https://doi.org/10.1108/13673270910997088
51. Zaied, A.N.H. 2012. An Integrated Knowledge Management Capabilities Framework for Assessing Organizational Performance. International Journal Information Technology and Computer Science, vol. 2, 1-10.
52. Zaied, A.N.H., Hussein, G.S., & Hassan, M.M.. 2012. The Role of Knowledge Management in Enhancing Organizational Performance. International Journal Information Engineering and Electronic Business, 2012, vol. 5, 27-35.
53. Zeebaree, Mohammed. (2017). The Impact of Entrepreneurial Orientation on Competitive Advantage Moderated by Financing Support in SME, International Review of Management and Marketing, 2017, 7(1), 43-52.
54. Zhao, Y., Li, Y., Lee, S.H. & Chen, L.B., 2011, Entrepreneurial Orientation, Organizational Learning, and Performance: Evidence from China, Entrepreneurship Theory and Practice, 35 (2), pp. 293-317.
55. Zhou K.Z., Chi Kin Yim & David K. Tse, 2005, The Effect of Strategic Orientations on Technology and Market-Based Breakthrough Innovations. Journal of Marketing, Vol.69 (April), pp. 42-60.
