The effect of entrepreneurial orientation and knowledge management on organizational performance through innovation

Abstract

This study aims to examine the effect of entrepreneurial orientation, knowledge management, and innovation on organizational performance. This study uses explanatory research with a quantitative approach. The population in this study was made up of Malang City consumer cooperatives. The study employed the purposive sampling technique. The sample in the study was 60 consumer cooperatives. Data was collected through surveys, documentation, and the use of Likert scales to test instruments. The data was analyzed using Structural Equation Model Partial Least Squares (SEM-PLS) modeling. The results of this study indicate that entrepreneurial orientation and knowledge management can directly improve organizational performance. However, unlike knowledge management, entrepreneurial orientation cannot increase innovation. Organizational performance can be directly improved by innovation. Innovation is unable to mediate between entrepreneurial orientation and organizational performance. However, innovation is able to mediate the relationship between knowledge management and organizational performance. The findings of this study suggest that consumer cooperatives in Malang City can improve organizational performance by optimizing entrepreneurial organizations and knowledge management.