ABSTRACT

The importance of effective network quality and dynamic capability approaches in organizations, especially knowledge-based organizations, is to improve innovative performance. It happens because of dynamic capabilities based-organizations development, exploitability knowledge and the important role of the networks quality in fashion industry, are a fundamental concern for top managers to strengthen the capabilities of strategic transformation in enhancing innovative performance. The purpose of this study was to develop a strategic transformation capability model based on relational quality towards the exploitability knowledge and innovative performance. This study used a purposive sample with 287 respondents from the fashion industry in Central Java, Indonesia. The AMOS software used to Structural Equation Model analysis technique in this study. The findings of this study indicate that there is an increase in the exploitability knowledge carried out by increasing the strategic transformation capability. Therefore, it is necessary to take several steps to improve the company's network quality. Based on the findings of this study, suggestion proposed is to ensure innovative performance that is more productive through  more effective exploitability knowledge.

Keywords: relational quality; strategic transformation capability; exploitability knowledge; innovative performance.