Purpose of the study: The study aims to determine the effect of variable mediation in this case the Supply Chain Strategic (SCS), on the influence of Knowledge Management (KM) on Business Performance (BP).

Methodology: The method used in this research is using quantitative descriptive studies using a simple dissertation approach and linear regression analysis with SPSS and Amos version 23, starting from the measurement of Confirmatory.

Main Findings: The main finding of this study is that the mediation variable, in this case, the Supply Chain Strategy (SCS) can mediate the effect of Knowledge Management on Business Performance carried out in the Small and Medium Enterprises (UKM) sector in Java Island, Indonesia in 2019.

Applications of this study: The implications of this study indicate that SCS has an important role in the development of future business, especially in Small and Micro Enterprises (SMEs).

Novelty/Originality of this study: SCS is used to mediate the effect of KM on BP on SMEs, and this is one of the Novelties in this study.


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