The Effect of Customer Knowledge Management on Competitive Advantage in Beekeeping MSMEs: Does Innovation Capability Play a Mediator Role?

Abstract

This study aims to investigate the role of customer knowledge management (CKM) in achieving competitive advantage (CA) through innovation capability (IC) and the role of firm age as a moderator between IC and CA. This study uses a quantitative approach with Smart PLS 3.0 multivariate Structural Equation Model (SEM) analysis. Data were collected from a survey with 210 business people selected using a purposive method. The first inclusion criterion is running a micro, small, or medium enterprise (MSME) in the beekeeping industry (with business sizes determined based on the number of workers, assets, and turnover as stipulated in the Law of the Republic of Indonesia No. 20 of 2008 concerning MSMEs. The second criterion is having been in business for at least ten years. The findings show that IC mediates CKM in achieving CA. There are also positive impacts of CKM on IC, IC on CA, and CKM on CA. The results indicate that young firms have higher IC, empowering them to obtain CA. This study confirms that CKM, IC, and CA are intangible assets sensitive to firm age. However, this study is limited to honey product MSMEs in East Java and respondents with a business aged ten years and above. Nonetheless, the findings can inform future studies on other dynamic MSME products in food and non-food sectors, especially in a post-crisis context, such as the COVID-19 pandemic. Understanding dynamic MSME products can help the sector bounce back after a crisis so it can contribute to GDP and the economy.