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The Effect of Knowledge Acquisition on Competitive Advantage: The Mediation Role of Innovation in Indonesia’s Batik SMEs

Author

Listed:
  • Ngatno
  • Reni Shinta Dewi
  • Ari Pradanawati

Abstract

The purpose of this study is to investigate the effect of knowledge acquisition on competitive advantage by examining the mediating effect of innovation. A total of 100 batik small and medium enterprises (SMEs) in Central Java were sampled, and the data were analyzed with SPSS AMOS 23 structural equation modeling (SEM). The results show that knowledge acquisition does have an effect on innovation. Furthermore, innovation is proven to have an effect on competitive advantage. The mediation test shows that innovation plays a full role in mediating the relationship between knowledge acquisition and competitive advantage. Meanwhile, knowledge acquisition does not have a direct effect on competitive advantage.

Suggested Citation

  • Ngatno & Reni Shinta Dewi & Ari Pradanawati, 2021. "The Effect of Knowledge Acquisition on Competitive Advantage: The Mediation Role of Innovation in Indonesia’s Batik SMEs," Humanities and Social Sciences Letters, Conscientia Beam, vol. 9(4), pages 315-325.
    • Handle: RePEc:pkp:hassle:v:9:y:2021:i:4:p:315-325:id:901
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