THE EFFECT OF KNOWLEDGE MANAGEMENT ON INNOVATION CAPACITY THROUGH SMEs COMPETENCY AND MOTIVATION IN JAMBI PROVINCE
This study aimed to develop a model for improving knowledge management on innovation ability, through competence and motivation in SMEs. In this experiment, a descriptive and statistical analysis method was used, with the object covering 4 main variables in IKM, namely knowledge management, competency, motivation, and innovation ability. The subject used as the unit of analysis was also the owner of IKM in Jambi Province. Furthermore, the total implemented population was 11,364 IKM, with 386 IKM owners used as the experimental sample in Jambi Province. Data analysis was also conducted through Structural Equation Modeling (SEM) based on variance, namely Partial Least Square (PLS). For data processing, experimental performances were then carried out through SmartPLS Ver.3.0 software. The results proved that knowledge management greatly strengthened innovation capabilities through competence and motivation. In addition, the novelty of this study emphasized the explanation of knowledge management effects on innovation ability, through competence and motivation as intervening variables.
Innovation Capability, Knowledge Management, Competence, Motivation, IKM