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        Factors Affecting Organizational Performance

        Nur LAILY,Nur Fadjrih ASYIK,Triyonowati TRIYONOWATI,Titik MILDAWATI 한국유통과학회 2021 The Journal of Asian Finance, Economics and Busine Vol.8 No.6

        The knowledge management concept is a valuable instrument for improving organizational performance. The purpose of this research is to investigate the effect of knowledge sharing and organizational learning on innovation and organizational performance, the innovation role as a mediator of knowledge sharing and organizational learning. This is causality research with a sample comprising of 217 managers of manufacturing companies in East Java, Indonesia. Primary data were obtained using an instrument in the form of a questionnaire and analyzed using the PLS-SEM approach. The SMART-PLS is a measurement model and structural equation used to explain the relationship between variables and the mediating effects. The results showed knowledge sharing and organizational learning had a direct effect on innovation and organizational performance. Furthermore, the findings show that innovation was able to mediate the impact of organizational learning on organizational performance, but was unable to mediate knowledge sharing on organizational performance. This research confirms the positive influence of innovation and shows that it plays an essential role in mediating between variables, and it is important for organizational performance. This research has important practical implications for companies regarding the importance of implementing knowledge sharing, organizational learning, and innovation due to their proven ability to improve organizational performance.

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