THE INFLUENCE OF KNOWLEDGE CAPABILITY FOCUS, KNOWLEDGE CAPABILITY ACTIVITIES AND ORGANIZATIONAL RISK TAKING ON SMES BUSINESS MODEL INNOVATION

Abstract

This study aims to examine the effect of knowledge capability focus, knowledge capability activities and organizational risk taking on SME business model innovation. The object of this research was the SME of Batik Lasem in Rembang Regency, Central Java. The total population was 107 SMEs and the respondents who were sampled in this study were 100 SMEs taken from those returning the questionnaire. Data collection techniques utilized a questionnair, while the data analysis technique used multiple linear regression. The results show that knowledge capability focus and knowledge capability activities have a positive but insignificant effect on SME business model innovation, while organizational risk taking has a significant positive effect on SME business model innovation.

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