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The Influence of Institutional Mechanisms and Agility on Knowledge Integration in MSME Supply Chains

Author

Listed:
  • Nur Haadi Akbar

    (Hasanuddin University)

  • Wahda Wahda

    (Hasanuddin University)

Abstract

For this purpose, the study of the detailed dimensions of knowledge integration (including tacit know how sharing, technology use and cross-functional cooperation) influence in contingent on supply chain performance (SCP) among micro small medium enterprises (MSMEs), with an assessment on the mediating role of operational agility as well as institutional support. Drawing on the resource-based view and dynamic capability theory, the paper reports empirical evidence derived from survey of 207 MSMEs in South Sulawesi, Indonesia with the assistance of Institution. Partial Least Squares-Structural Equation Modeling (PLS-SEM) was used to test the proposed model. Findings show that all three dimensions of knowledge have a positive impact on supply chain performance directly as well as indirectly through operational agility. Cross-functional collaboration emerged as the strongest driver of both agility and performance. Furthermore, institutional support comprising regulatory assistance, digital infrastructure, and advisory programs not only directly enhances agility but also significantly strengthens the effect of each knowledge dimension on agility. ANOVA results confirm that MSMEs with high institutional support demonstrate significantly better performance outcomes. These findings underscore the strategic interplay between internal knowledge capabilities, agility, and external institutional ecosystems in fostering MSME competitiveness within emerging economies.

Suggested Citation

  • Nur Haadi Akbar & Wahda Wahda, 2026. "The Influence of Institutional Mechanisms and Agility on Knowledge Integration in MSME Supply Chains," Advances in Economics, Business and Management Research,, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6239-709-5_102
    DOI: 10.2991/978-94-6239-709-5_102
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