THE INFLUENCE OF KNOWLEDGE MANAGEMENT AND INNOVATION ON WORK PRODUCTIVITY AND ITS IMPLICATIONS FOR THE QUALITY OF PRODUCTS PRODUCED BY SMALL AND MEDIUM ENTERPRISES IN BANDUNG REGENCY

Abstract

SMEs (Small and Medium Enterprise) is one of many other things that drive Indonesian economy. Up to now, the activities of SMEs in Bandung District have increased. There are some problems that arise such as ineffective marketing resulted from lack of promotion, poor product quality due to capacity and human resource skill issues. This research is aimed to analyze the impact of knowledge management and innovation on productivity and its implication on product quality produced by SMEs in Bandung district. The method of this research is descriptive verificative with survey approach. The result of hypothesis testing shows that knowledge management has significant impact on productivity with total impact 19.90%. The total percentage consists of direct impact 9.12% and indirect impact 10.78%. Innovation has significant impact on productivity with total percentage 29.96% consisting of direct impact 19.18% and indirect impact 10.78%. The impact of productivity is significant on product quality produced by UMKM in Bandung District, and its percentage is 30.67%.