The Effect of Innovation and Entrepreneurial Orientation on Business Performance with Knowledge Management as Mediation Variables in MSMES West Java

The development of the contribution of GDP to micro, small, and medium enterprises is seen to have increased from year to year. Besides being able to have a positive impact on the country, MSMEs also have a good impact on several provinces in Indonesia, one of which is West Java. MSMEs take part in increasing income in West Java. However, in reality, West Java only provides the fourth largest contribution (14.33%) to the National Gross Domestic Product (GDP) after DKI Jakarta, East Java and East Kalimantan (Ministry of Industry, 2017). Even though 50% of the total national industry is in West Java. This indicates that the performance of MSMEs in West Java has not improved over time. So it can be stated that the performance of the MSME business in West Java is still low. The cause of the weak performance of MSMEs is allegedly due to weak innovation and entrepreneurial orientation as well as inadequate knowledge management in managing businesses.