Knowledge-Based Business for the Sustainability Msmes in Indonesia's New Normal Era

Abstract

This study aims to determine the ability of MSME actors to manage their knowledge about the concept of knowledge- based business, to the sustainability of their business in the current new normal. This study uses quantitative methods. Data collection techniques are carried out by surveys and literature studies.This study uses a sample of 300 SMEs in Indonesia. The data analysis used was validity test, reliability test, descriptive statistical test, and SEM (Structural Equation Modeling) analysis test.The results of the survey and test data found that knowledge acquisition, knowledge conversion, and knowledge protection had no effect on MSME business sustainability as measured by the quality of their products. Meanwhile, the application of knowledge has an effect on the sustainability of MSME businesses as measured by the quality of their products. Knowledge acquisition, knowledge conversion, and knowledge application have no effect on MSME business sustainability measured through product innovation. Meanwhile, knowledge protection has an effect on the sustainability of MSME businesses as measured by product innovation. MSME actors currently really need the help of knowledge to design new business concepts as well as large enough capital to be able to bounce back.