The Role of Internationalization in Fashion Industry Bridging Knowledge Management, Dynamic Capabilities, and Innovative Behavior Toward Export Performance

Abstract

The paper aims to analyze the influence of knowledge management, dynamic capabilities, and innovative behavior mediated by the internationalization of SMEs in Muslim fashion in Jakarta, Indonesia to improve Export Performance. This study also investigates the mediating effect of internationalization between knowledge management, dynamic capabilities, innovative behavior, and SME export performance. This study used a descriptive approach to analyze quantitative data obtained from export-orientation SMEs. Data was collected through a survey conducted with 235 Muslim Fashion SME owners in Jakarta, Indonesia. Data analyses were conducted using partial least square–sequential equation modeling (PLS-SEM). This study divulges the mediating effect of internationalization on the influence of knowledge management, dynamic capabilities, and innovative behavior toward Export Performance. In addition, knowledge management, dynamic capabilities, and innovative behavior directly affect internationalization as innovative behavior is the biggest influence on the internationalization process. This study offers empirical evidence on how Export Performance is mediated by its internationalization and influence by knowledge management, dynamic capabilities, and innovative behavior. In addition, this offers a model that can be used by further researcher and insight for SMEs to enhance their export performance.