Effect of Knowledge Management Capabilities and Entrepreneurial Orientation Towards Competitive Advantage: A Study on Small Businesses in Banten Province, Indonesia

This study analyses the influence of knowledge management capabilities (KMCs) and
entrepreneur orientation on competitive advantages in small businesses managed by women
entrepreneurs in Banten Province, Indonesia. This research method uses the explanatory
survey method with a quantitative approach. The data were collected by surveying the
businesses using instruments in the form of questionnaires. Data were analysed by using
partial least squares structural equation modelling. Results are as follows. Firstly, KMCs
partially have a positive and significant effect on entrepreneurial orientation. Secondly, KMCs
partially have a positive but nonsignificant effect on competitive advantage. Thirdly,
entrepreneurial orientation has a partially positive but nonsignificant influence on competitive
advantage. Fourthly, KMCs and entrepreneurial orientation have a positive and significant
effect on competitive advantage. The study presents three conclusions. Firstly, knowledge of
new products is a knowledge resource that women-run small businesses use to respond
quickly to the market. Secondly, knowledge resources related to information opportunities in
the market are not quickly acquired by organisations; hence, such knowledge resources cannot
be translated to competitive advantage. Thirdly, technological developments affect the
movement of change tendencies that encourage business actors to be adaptive and creative in
creating products that meet the needs of society. Such competitive actions become competitive
advantages