Knowledge Sharing and Innovation in Small Medium Enterprises (SMEs) Moderated by Creative Leadership

Abstract

The purpose of this study is to analyze the role of creative leadership in moderating the influence of knowledge sharing on innovation in the SMEs of leather craft industry in Badung Regency. The population of this study is employees of the leather craft industry of which the data were obtained from Bali Province Industry and Trade Office. The data of 2019 show that there is a population of as many as 115 employees in the industry, and by using the Slovin formula, the samples obtained are 53 respondents. The collected data were analyzed using Right Moderating Regression Analysis (MRA). The results show that knowledge sharing has a significant effect on innovation. Creative leadership has a significant effect on innovation. Furthermore, the findings of this study indicate that creative leadership can strengthen the influence of knowledge sharing to support innovation. The implications of this study inform that creative leadership plays an important role because it can amplify the effect of the activities of cultural knowledge sharing to create innovation.