Knowledge Management and Innovative Behavior: The Mediating Role of Innovation in FMCG Firms
DOI:
https://doi.org/10.31000/digibis.v4i2.15171Abstract
The Indonesian Fast-Moving Consumer Goods (FMCG) industry is currently facing heightened competition due to market growth deceleration and shifting consumer behavior, requiring firms to strengthen knowledge management and innovation capabilities to sustain performance. This study examines the influence of Knowledge Management Process (KMP) and Innovation Work Behavior (IWB) on Firm Performance (FP), with Innovation (INNO) functioning as a mediating variable under the Knowledge-Based View (KBV) framework. A quantitative descriptive–explanatory design was employed, involving 104 employees of PT Paragon Technology and Innovation as respondents, and data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results reveal that IWB significantly enhances KMP but does not exert a direct effect on FP. Conversely, KMP positively affects both FP and INNO, while INNO fully mediates the relationship between IWB and FP and partially mediates the relationship between KMP and FP. High R² values for FP (76.6%) and INNO (74.2%) indicate strong explanatory power of the research model. Conceptually, this study provides novelty by integrating IWB and KMP simultaneously in predicting FP through the mediating mechanism of innovation within the Indonesian FMCG context. The study further contributes practical insights by emphasizing the need for organizations to reinforce knowledge management systems as a foundation for innovation and sustainable performance enhancement especially in the FMCG industry.
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