The Mediating Role of Creativity on the Effect of Knowledge Sharing on Sustainable Competitive Advantage

Abstract

This study aims to analyze and strengthen the influence of knowledge sharing on the sustainability of competitive advantage, as well as to analyze the role of creativity as a mediator. The knowledge sharing variable in this study includes both tacit and explicit knowledge sharing. This study used data collected from 384 respondents belonging to small and medium enterprises in the Special Region of Yogyakarta (DIY) and Central Java, Indonesia. The research was conducted for 4 months from July through October 2021. The data acquisition instruments were in the form of questionnaires and interviews, with data analysis utilizing the Partial Least Squares (PLS) method. The results of the study found that sharing of both tacit and explicit knowledge had a direct effect on creativity. Other findings suggested that creativity has a direct influence on a sustainable competitive advantage. Other results show that tacit knowledge sharing had a direct effect on sustainable competitive advantage but not through creativity as a mediator. Meanwhile, explicit knowledge sharing had a direct effect on sustainable competitive advantage as well as through creativity as a mediator. The results of the study can be used as a reference for small and medium sized business actors, especially for increasing the business’ competitive advantage, and for other decision makers.