Abstract
The purpose of this study was to analyze the impact of variable mediation knowledge management innovation in relation to organizational performance and analyze the impact of innovation on the relationship mediating variables of organizational culture on an organization. Population performers in this study were employees of XYZ. Collecting data in this study was conducted using the questionnaire method. Data analysis method used in this study is Partial Least Squares is a powerful method of analysis because it does not assume the data must use a certain scale and can use a small sample. The results showed that (1) knowledge management influence on innovation; (2) The effect on the organizational culture of innovation; (3) Knowledge Management of an effect on the performance of the organization; (4) The organizational culture influence on organizational performance (5) innovation does not affect the performance of the organization, (6) the innovation did not mediate the relationship of knowledge management to organizational performance; (5) innovation does not mediate the relationship of organizational culture on organizational performance. Results obtained interviews innovation does not affect the performance of the organization for their gaps and differences in perception between the authority and powers of innovation, so that innovation is always dependent on the individual who is willing to turn these innovations.
Highlights
Globalization, which is characterized by the emergence of information and communication, is an era that cannot be avoided
The resulting path coefficient is positive in the amount of 0.688 with a p-value of less than 1%. This means that the organizational culture significant positive effect on innovation that is better than the Organizational Culture of Innovation, the better
The resulting path coefficient is positive in the amount of 0.426 with a p-value of less than 5% .This means Cultural organizations significant positive effect on organizational performance is getting a better culture of the organization, the better organizational performance
Summary
Globalization, which is characterized by the emergence of information and communication, is an era that cannot be avoided. Talking about the competition between nations, each nation is required to have high competitiveness, In the midst of the Indonesian nation attempts to stand in line with other nations in the world, the President of the Republic of Indonesia, Joko Widodo has set the technological innovation as one of the pillars of nation building. Technology, as the result of the nation’s work, should be able to increase the productivity of the production system, which, in turn, will stimulate higher economic growth and competitiveness of Indonesian nation. Innovation is considered as an important mechanism to become more competitive and to survive in the global business world [29]. According to [2] innovation is an important force in improving organizational performance and can promote economic and development growth. While in [9] it is explained that innovation may be a new product or service, a new production process technology, new structure and administration systems or a new plan for the organization's members
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