Abstract

Corporate governance related to the external stakeholders needs to be supported by professional knowledge, which includes

Islamic and contemporary knowledge. The cooperative relationship with stakeholders has potential to increase the knowledge of

managers. It is hoped that it will affect the company's good reputation. However, so far, the empirical research on reputation and

partnerships has been primarily seen from the customer side and carried out in large organizations. Organizational agility is still

rarely studied in both large organizations and SMEs. This study aims to examine the role of strategic partnership,

professional knowledge, and organizational agility in improving the reputation of Small and Medium Enterprises (SMEs) in

Islamic outlook. The results are expected to give contribution for SMEs in enhancing the strategic role of their human

resources (especially managers) for the development of SME performance. With a sample of 315 managers of SMEs, the data

obtained was analyzed by using structural equation modeling with AMOS software. The results showed that strategic partnership

has a significant effect on professional knowledge, but not on organizational agility. Professional knowledge has a significant

effect on organizational agility, not on organizational reputation. Then, the organizational agility has a significant effect on the

organizational reputation. Therefore, it is important to support knowledge transfer from the individual to the organizational

level. Besides, it is also necessary to improve Islamic social capital to support the reputation of small and medium enterprises.

Keywords: strategic partnerships, professional knowledge, organizational agility, reputation, corporate governance.