Abstract

This paper aims to examine the effect of knowledge sharing capability and product innovation on business performance with environmental dynamism as moderating variable. Respondents of this study were 148 Muslim owners or leaders of fashion SMEs in Semarang, Indonesia. A hierarchical regression analysis was used to examine the relationship between knowledge sharing capability and product innovation on business performance with environmental dynamism as moderating variable. This study found that knowledge sharing capability have a significant effect on product innovation and business performance. Furthermore, product innovation has a significant effect on business performance and environmental dynamism can be a mediator of the relationship between product innovation on business performance.

Keywords: Knowledge sharing capability, Product innovation, Environmental dynamism, Business performance