Increasing Innovation Capability Through Knowledge Sharing Behavior, Absorptive Capacity, And Capacity Building at Small and Medium Enterprises

This study aims to examine and determine the effect of knowledge-sharing behavior, absorptive capacity, and capacity building on innovation ability. This research is descriptive-quantitative research with primary and secondary data. The sampling technique used accidental sampling and obtained 90 respondents. Data were collected through direct surveys and then processed using multiple linear regression analysis. The results show that knowledge-sharing behavior, absorptive capacity, and capacity building partially have a positive and significant effect on the innovation capacity of small and medium business actors. All variables of knowledge-sharing behavior, absorptive capacity, and capacity building simultaneously have a positive and significant effect on innovation capacity. The effect of knowledge-sharing behavior, absorptive capacity, and capacity building on innovation capacity is 40.4%, and the remaining 59.6% is influenced by other factors not examined in this study.