External Stimulus and Organizational Culture in Enhancing‎MSME Performance Through Radical Innovation and Knowledge Sharing

  • Authors

    • Rachmat Agus Santoso Universitas Sultan Ageng Tirtayasa
    • Meutia Universitas Sultan Ageng Tirtayasa
    • Muhamad Taqi Universitas Sultan Ageng Tirtayasa
    • Yeni Januarsi Universitas Sultan Ageng Tirtayasa
    https://doi.org/10.14419/n9rh5x74

    Received date: September 22, 2025

    Accepted date: October 29, 2025

    Published date: November 7, 2025

  • MSMEs; External Stimulus; Organizational Culture; Radical Innovation; Knowledge Sharing; Performance

  • Abstract

    This study investigates the influence of external stimulus and organizational culture on MSME performance, with radical innovation and ‎knowledge sharing serving as mediating mechanisms. Adopting a quantitative approach, data from 204 MSME owners and managers were ‎analyzed using Structural Equation Modeling (SEM) with AMOS. Both the measurement and structural models achieved acceptable fit ‎indices, indicating a satisfactory model data fit. The findings reveal that external stimulus plays a strong role in driving radical innovation ‎and knowledge sharing, and exerts a direct positive effect on MSME performance. Organizational culture is also a significant driver of ‎radical innovation and knowledge sharing, but it shows a direct negative effect on performance. Mediation analysis confirms that the primary ‎contribution of organizational culture to performance occurs indirectly through radical innovation and knowledge sharing, while external ‎stimulus also enhances performance significantly via these mediating pathways. These results underscore that radical innovation and ‎knowledge sharing are not merely passive outcomes of favorable environments or cultures but are strategic levers that determine MSMEs’ ‎adaptability and competitiveness. From a practical perspective, the study offers guidance for business actors to integrate external market ‎awareness with a collaborative, innovation-oriented organizational culture to ensure sustainable growth in highly dynamic and competitive ‎markets‎.

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    Santoso, R. A., Meutia, Taqi, M. ., & Januarsi, Y. . (2025). External Stimulus and Organizational Culture in Enhancing‎MSME Performance Through Radical Innovation and Knowledge Sharing. International Journal of Accounting and Economics Studies, 12(7), 253-266. https://doi.org/10.14419/n9rh5x74