The Mediating Effect of Innovation on the Relationship of Leadership, Technological Capabilities, Learning, Industry Competitive Forces and the Performance of Small and Medium Enterprises

Abstract

This study examines the influence of leadership, technological capabilities, learning and industry competitive forces on the performance of S:tvlEs, either directly or indirectly. The sample consists of 113 S:tvlEs in the meubelair, food and beverage specialties, handicrafts, batik and embroidery sector in Jember District., East Java Province, Indonesia. Results using path analysis show that from eight hypothesis, four hypothesis were accepted. The study finds significant direct effect of technological capabilities and learning on the performance of S:tvlEs. There is an indirect and significant effect of technological capabilities and industry competitive forces on the performance of S:tvlEs through innovation.