THE ROLE OF ENTREPRENEURSHIP COMPETENCE, ENTREPRENEURSHIP ORIENTATION AND KNOWLEDGE MANAGEMENT ON MSME PERFORMANCE

This study aimed to determine the role of entrepreneurial competence in the effect of entrepreneurial orientation on MSME performance. This study uses a quantitative approach. The data used in this study is primary data based on questionnaires given to 100 business actors as respondents. The analyzer uses Smart PLS. The results of this study are that the entrepreneurial orientation variable influences the performance of MSME. There is no influence of the knowledge management variable on the performance of MSME. Then entrepreneurial orientation and knowledge management directly show an effect on entrepreneurial competence. Furthermore, the competency variable has a positive and significant influence as a mediating variable on the entrepreneurial orientation variable on MSME performance. As well as the competence variable has a positive and considerable influence as a mediating variable on the knowledge management variable on MSME performance.


A. INTRODUCTION
The involvement of MSME is one factor that influences the increase or decrease in economic growth in Indonesia.By the 1945 Constitution article 33, paragraph 4, MSMEs have great potential to improve people's welfare and are part of the national economy with an independent perspective.Based on data from the Ministry of Cooperatives and MSME, the contribution of MSME to the National GDP is 60.5%.Sarfiah, et al (2019) stated in his research that MSME are proven to be able to absorb a larger workforce in the national economy.The MSME sector, which can absorb a large enough force, will increase people's income and reduce unemployment and poverty.According to Nugraha, et al (2022), the basis of all MSME is to have the best performance because this is an absolute requirement for the sustainability of these MSME.The condition allows MSME to play a role in the national economy.
MSME actors sometimes still often ignore business performance.It is usually because business actors often open and close their businesses due to losses, enterprises are less attractive or lose in business competition with other entrepreneurs, and do not have competence in managing a business.According to Fachrunnisa and Putri (2022), Human resource competence is one factor that influences MSME' performance.The better the competence of human resources owned by MSME, the better the performance of MSME.According to Ludiya and Kurniawan (2020), to improve business performance, micro, and small business actors need to have entrepreneurial competence and entrepreneurial orientation to be ready to face the demands of a competitive environment.Entrepreneurial orientation is required to find and take advantage of new market opportunities and respond effectively to market potentials and threats.In EKSIS, Volume 17, No1 April -September 2022 https://ejournal.stiedewantara.ac.id/index.php/001/article/view/1065addition, Rizkyan and Pradana (2020), states that in managing their business, business actors also need the knowledge to develop their business for the better and maintain it.Both company leaders and employees must have broad and varied expertise because, with the amount of information obtained, all elements of the company can process information correctly and adequately.
Previous research conducted Rizkyan and Pradana (2020) explained that knowledge management does not positively affect organizational performance, then entrepreneurial orientation has a positive influence on organizational performance.Then the research conducted Ludiya and Kurniawan (2020) explains that entrepreneurial competence and exposure partially affect business performance.From this background, the researcher wants to carry out further studies that are different but still within the scope and scope.The purpose of this study was to determine the role of competence as a mediator on the influence of entrepreneurial orientation and entrepreneurial knowledge on the performance of MSME.

B. LITERATURE REVIEW 1. Performance
According to Wibowo (2018), performance is the result of work or output produced in terms of quality or quantity of work.It can be accounted for based on its role in a company or organization accompanied by abilities, skills, and skills in completing work.Performance improvement is one of the goals of every business entity, including MSME players.As one of the pillars of the Indonesian economy, increasing and improving the performance of MSMEs needs special attention from various parties Iqbal and Yuliandari (2019).Organizational performance indicators are measured based on several organizational performance measures often carried out by several studies Winarto, (2020).In this study, the measurement indicators used refer to previous research conducted Viviani, et al (2020), including (1) sales growth, (2) capital growth, (3) additional workforce every year, (4) market and marketing growth, and (5 ) Profit growth/business profit.

Entrepreneurial Competence
According to Isa, (2011), entrepreneurial competence is knowledge, behavior, and abilities connected, which business actors need to be trained and developed to produce the best performance in managing their business.According to Pratopo, et al (2021), competence is a characteristic that is contained in an individual to make him understand and predict his surroundings in a job or situation.Entrepreneurial competence indicators in this study refer to research Bumbung (2007), which include (1) technical competence, (2) marketing competence, (3) financial competence, and (4) human relations competence

Entrepreneurial Orientation
According to Dwi, et al (2019), entrepreneurial orientation is a company strategy to enter a specific market scope in which activities depend on the company's goals.MSME with an entrepreneurial orientation are willing to innovate, are proactive in seeking new opportunities or opportunities, and have the courage to take business risks.The indicators of entrepreneurial orientation are (1) innovation, (2) risk-taking, (3) activeness, (4) competitive aggressiveness, and (5) autonomy (Dwi, et al , 2019) EKSIS, Volume 17, No1 April -September 2022 https://ejournal.stiedewantara.ac.id/index.php/001/article/view/1065

Knowledge Management
According to Dwi, et al (2019), the application of knowledge management directly impacts the quality of human resources and the quality of products produced to increase company competitiveness.In this study, the measurement indicators used refer to previous studies conducted namely (1) knowledge implementation, (2) knowledge creation, and (3) knowledge sharing.

C. RESEARCH METHOD
This research was conducted using a quantitative research approach with a descriptive correlation design, aiming to describe the role of entrepreneurial competence in the influence of entrepreneurial orientation and knowledge management on the performance of MSME.In this study, the data used were cross-sectional data obtained from primary sources, namely using data from the results of distributing questionnaires directly to research respondents, then processed, analyzed, and presented in tables and narratives.
The population in this study are business actors in the village.Sukamahi, Central Cikarang.The sample in this research uses Non-Probability Sampling.The sample used in this study was 100 respondents using the non-probability sampling method, namely accidental sampling, namely a sampling technique based on coincidence; anyone who coincidentally/incidentally meets the researcher can be used as a sample if it is deemed that the person who happens to be found is suitable as a data sources.
In this study, the data analysis technique used is a descriptive and inferential analysis using the Partial Least Square (PLS) analysis tool.In PLS, the weight estimate for creating the latent variable score components can be based on the inner model (a structural model that connects latent variables), and the outer model is a measurement model, namely the relationship between indicators and their constructs.Based on the data above, it is known that each indicator on the research variable has the most significant cross-loading value on the variable it forms compared to the cross-loading value on other variables.Based on the results obtained, it can be stated that the indicators used in this study have good discriminant validity in compiling their respective variables.Based on the table above, each variable in this study shows an AVE (Average Variant Extracted) value of >0.5.The value of each variable for MSME performance is 0.781; knowledge management is 0.906, entrepreneurial competence is 0.793, and entrepreneurial orientation is 0.782.It shows that each variable in this study can be said to be valid with discriminant validity.Based on the data above, it can be shown that the composite reliability value of all research variables is > 0.7, where the value of each question is for MSME performance of 0.947, knowledge management of 0.967, entrepreneurial competence of 0.939, and entrepreneurial orientation of 0.947.It shows that each variable meets composite reliability, so it can be concluded that all variables have a high level of reliability.Based on the data above shows that the Cronbach alpha value of all variables in this study has a value above> 0.7, which means that the cronbach alpha value meets the requirements so that all constructs can be said to be reliable.Based on the results of the R2 test, it can be concluded that entrepreneurial orientation and knowledge management on MSME performance provide a value of 0.770 by interpreting that the variability of MSME performance constructs can be explained by the construct variability of entrepreneurial orientation and knowledge management is 77%.In contrast, the rest is explained by other variables outside the research.Likewise, the influence model of entrepreneurial orientation and knowledge management on entrepreneurial competence has a value of 0.681 by interpreting that the variability of the constructs of entrepreneurial competence that can be explained by the variability of the constructs of entrepreneurial orientation and knowledge management is 68.1%, while other variables outside this study describe the rest.

Hypothesis Test
To determine whether the hypothesis is accepted or rejected, it can be done by paying attention to the significance values between constructs, t-statistics, and p-values.By doing this, measurement estimates and standard errors are no longer calculated using statistical assumptions but are based on empirical observations.In the bootstrapping method in this study, the hypothesis is accepted if the significance value of the t-values is > 1.96 and or the p-values are <0.05.1.96and/or p-values <0.05.Based on the data above, it can be seen that the construct of entrepreneurial orientation has an influence on the performance of MSMEs based on the t-statistics value on the relationship of this variable which is 2.517 > 1.96, and p-values 0.012 <0.05.So the first hypothesis states that there is an influence between Entrepreneurial Orientation (X1) and MSME Performance (Y).Based on the data above, it can be seen that the construct of knowledge management has no influence on the performance of MSMEs based on the t-statistics value on the relationship of this variable which is 0.982 < 1.96 and p-values 0.326 > 0.05.Then the second hypothesis states that there is no influence between knowledge management (X2) and MSME performance (Y), or the hypothesis is rejected.Based on the data above, it can be seen that the construct of entrepreneurial orientation influences the performance of MSMEs based on the t-statistics value on this variable relationship, which is 6.380 > 1.96, and p-values 0.000 <0.05.So the third hypothesis states that there is an influence between Entrepreneurial Orientation (X1) and Entrepreneurial Competence (Z).Based on the data above, it can be seen that the construct of knowledge management influences entrepreneurial competence based on the t-statistics value of this variable relationship which is 3.596 > 1.96, and p-values 0.000 <0.05.So the fourth hypothesis states that there is an influence between knowledge management (X2) and Entrepreneurial Competence (Z).Based on the data above, it can be seen that the construct of entrepreneurial competence influences the performance of MSMEs based on the t-statistics value on this variable relationship, which is 3.596 > 1.96, and p-values 0.000 <0.05.So the fourth hypothesis states that there is an influence between entrepreneurial competence (Z) and MSME performance value on the indirect relationship of these variables, which is 2.669 > 1.96, and p-values 0.008 <0.05.So the fifth hypothesis states that entrepreneurial competence (Z) mediates entrepreneurial orientation (X1) on MSME performance (Y).Then, the t-statistic value on the indirect relationship between knowledge management and MSME performance through competence is 2.485> 1.96, and p-values 0.013 <0.05.Then the sixth hypothesis states that entrepreneurial competence (Z) mediates knowledge management (X2) on MSME performance (Y).

The Effect of Entrepreneurial Orientation on MSME Performance
The first hypothesis based on the data analysis that has been done can be seen that entrepreneurial orientation influences the performance of MSMEs.This study's results align with research conducted by Yanto (2021) that there is a positive influence between entrepreneurial orientation and company performance.Companies with an aggressive entrepreneurial orientation will be able to innovate, explore opportunities and develop new products to improve company performance.

The Effect of Knowledge Management on MSME Performance
The second hypothesis based on the data analysis that has been done can be seen that knowledge management does not influence the performance of MSME.The results of this study follow research conducted by Fahmi, et al (2020) that knowledge has no significant effect on performance.It can be caused by a lack of knowledge in terms of solving problems in business lack of understanding and knowledge related to business development.

The Effect of Entrepreneurial Orientation on Entrepreneurial Competence
The third hypothesis based on the data analysis that has been done shows that entrepreneurial orientation influences entrepreneurial competence.The results of this study follow research conducted by Hariyanti and Nuryati, (2020), that entrepreneurial orientation affects entrepreneurial competence.Entrepreneurial orientation as a company benefit strategy to be competitive and how competence can manage and solve problems to survive and develop.

The Effect of Knowledge Management on Entrepreneurial Competence
Based on the data analysis, the fourth hypothesis can be seen that knowledge management influences entrepreneurial competence.The results of this study follow research conducted by Kholis and Ferdian (2019) that there is an influence of knowledge management on competence.It is because knowledge is essential to a person's basic competence.

The Effect of Entrepreneurial Competence on MSME Performance
Based on the data analysis, the fifth hypothesis can be seen that entrepreneurial competence influences the performance of MSMEs.The results of this study follow research conducted by Ludiya and Kurniawan, (2020), that competence significantly affects performance.The higher the competence possessed by business actors, the higher the business performance.

The Effect of Entrepreneurial Orientation on MSME Performance by Mediating Entrepreneurial Competence
Based on the data analysis, the sixth hypothesis can be seen that knowledge management has an indirect effect on performance by mediating entrepreneurial

Validity Test Table 1. Outer Loading Value
Based on the table above, it is known that many of the research variable indicators each have an outer value > 0.7 so that all indicators are declared feasible or valid for research use and can be used for further analysis

Table 12 . Specific Indirect Effects
Based on the data above, it can be seen that entrepreneurial competence mediates the entrepreneurial orientation variable on MSME performance based on the t-statistics EKSIS, Volume 17, No1 April -September 2022 https://ejournal.stiedewantara.ac.id/index.php/001/article/view/1065