Effect of Knowledge Management Capabilities and Entrepreneurial Orientation Towards Competitive Advantage: A Study on Small Businesses in Banten Province, Indonesia
This study analyses the influence of knowledge management capabilities (KMCs) and entrepreneur orientation on competitive advantages in small businesses managed by women entrepreneurs in Banten Province, Indonesia. This research method uses the explanatory survey method with a quantitative approach. The data were collected by surveying the businesses using instruments in the form of questionnaires. Data were analyzed by using partial least squares structural equation modeling. Results are as follows. Firstly, KMCs partially have a positive and significant effect on entrepreneurial orientation. Secondly, KMCs partially have a positive but nonsignificant effect on competitive advantage. Thirdly, entrepreneurial orientation has a partially positive but nonsignificant influence on competitive advantage. Fourthly, KMCs and entrepreneurial orientation have a positive and significant effect on competitive advantage. The study presents three conclusions. Firstly, knowledge of new products is a knowledge resource that women-run small businesses use to respond quickly to the market. Secondly, knowledge resources related to information opportunities in the market are not quickly acquired by organizations; hence, such knowledge resources cannot be translated to competitive advantage. Thirdly, technological developments affect the movement of change tendencies that encourage business actors to be adaptive and creative in creating products that meet the needs of society. Such competitive actions become competitive advantages.