THE ROLE OF KNOWLEDGE SHARING IN ORDER TO INCREASE INNOVATION ABILITY AND EMPLOYEE PERFORMANCE IN INDUSTRY SECTOR OF SMALL-MEDIUM ENTERPRISE

The objectives of this study is to examine the effect of knowledge sharing and innovation ability on employee performance. In this study, it also analyzes the role of innovation ability as mediating variable of the relation of knowledge sharing and employee performance. The
method in his study is survey method, the sample of study that is the respondent in this study
is employees working on handicraft industry of SME in the Province of Bengkulu. The result
of this study shows that knowledge sharing significantly affects positively toward employee
performance, knowledge sharing does not affect positively toward corporate innovation
ability. The characteristic of SME that is characterized with its limitation of knowledge
available that is mostly only tacit causes the process of knowledge sharing does not run well
so that it does not give significant effect on corporate performance. The innovation ability of
employee positively and significantly affects corporate performance. The output of this study
is expected to be able to give contribution on management scientifict journals in international
level.