Abstract

Micro, Small, and Medium Enterprises (MSMEs) are one of the most developed
creative industries in Indonesia and are able to make significant contribution to
Indonesia's GDP (Gross Domestic Product), but the high growth of MSMEs has
not been able to create sustainable MSMEs performance. Factors that influence
each other include network capability, marketing performance, knowledge creation,
and product innovation. This study aims to empirically prove the effect of network
creation on marketing performance and knowledge creation, the effect of
knowledge creation on product innovation, and the effect of product innovation on
marketing performance. The sample in this study were 250 respondents of MSME
owners in Semarang City. The data collection method used questionnaire
distributed to MSMEs owners through Google Forms. Data analysis used
descriptive statistics and structural equation modelling with the Smart PLS
program. The results showed that network capability has positive and significant
effect on marketing performance and knowledge creation, knowledge creation has
positive and significant effect on product innovation, and product innovation has
positive and significant effect on marketing performance