Digital Knowledge Management: Catalyst for Sustainable Performance of West Java Leather Craft SMEs in Industry 4.0
Keywords:
Digital Knowledge Management, Organizational Performance, SMEs, Absorptive Capacity, Digital Transformation.Abstract
This study aims to analyze the influence of Absorptive Capacity, Innovation Capability, Digital Transformation, and Intellectual Capital on Organizational Performance, with the mediating role of Digital Knowledge Management (DKM), in Micro, Small, and Medium Enterprises (MSMEs) in the leather craft industry in West Java. Using a quantitative approach, this study involved the entire population of 33 leather craft MSMEs in West Java as the data source. Data were collected through questionnaires and analyzed using the Partial Least Squares Structural Equation Modeling (PLS-SEM) method. The results indicate that Absorptive Capacity, Innovation Capability, and Digital Transformation significantly influence DKM positively. However, Intellectual Capital does not have a significant influence on DKM. Furthermore, DKM was found to have a direct and significant influence on Organizational Performance. Absorptive Capacity also directly influences Organizational Performance. The mediating role of DKM is crucial: Innovation Capability and Digital Transformation indirectly influence Organizational Performance through DKM in a significant manner. Although Absorptive Capacity shows potential for indirect influence through DKM, the results are not yet fully clear. Intellectual Capital does not show significant influence, either directly or indirectly, through DKM. Overall, this research model effectively explains the variation in DKM (79.1%) and Organizational Performance (82.0%), emphasizing the complex interactions in SME performance.
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