The Mediating Effect of Government Policy on the Relationship Between Knowledge and Smes' Performance

Abstract

The primary goal of this study is to investigate the impact of knowledge on the performance of SMEs in Padang, where government policy serves as a mediator. The following are the study's specific objectives: (1) to look into the effect of knowledge on SME performance, and (2) to look into the effect of government policies on SME performance. (3) Examine the impact of government policy on the relationship between knowledge and SMEs' performance. The population in this study consists of all leaders or owners of SMEs in the field. A total of 375 samples were collected. Purposive sampling is a type of non-probability sampling. This study employs PLS-SMART to test the existing hypotheses. According to the findings of the research, (i) knowledge has a positive impact on SME performance; (ii) government policies have a positive impact on SME performance; and (iii) government policies are proven to mediate the relationship between knowledge and SME performance.