How does the Reduced Mental Health and Knowledge Sharing Culture Influence MSMEs Business Performance? Testing on Multiple Mediation Model

Abstract

The objective of this study is to examine the relationship between the variables of reduced mental health, knowledge-sharing culture, entrepreneurial competence, and organizational commitment that affect business performance in order to create a model for improving MSME business performance during the economic slowdown. The research population is the association of natural dye batik MSMEs in Central Java. The sampling employed here is non-probability-based, using a saturated sampling technique that involves selecting all members of the population; this technique is also often referred to as a census technique with a sample size of 106 respondents. Data analysis tools using the Smart-PLS application with SEM data analysis techniques the findings indicated that decreased mental health adversely impacted the business performance; in this model, entrepreneurial competence was unable to mediate. Influencing all research variables significantly, a knowledge sharing culture notably impacts the model, where entrepreneurial competence acts as a mediator between knowledge sharing culture and business performance. Organizational members can support each other and improve their abilities, gain new knowledge, and want to develop it, creating a sense of happiness to be part of the organization and feeling like family, which has an impact on the feeling of difficulty leaving the organization.