THE ROLE OF ABSORPTIVE CAPACITY MODERATION ON THE EFFECT OF KNOWLEDGE SHARING AND MSMEs EMPLOYEE PERFORMANCE IN KEBEN BANGLI DISTRICT

ABSTRACT: This study aims to determine the moderating role of absorptive capacity on the influence ofknowledge sharing on employee performance. This research is located in Bangli City which involved 90respondents who acted as craftsmen at MSMEs Eka Wind Chime Bamboo Handy craft. Descriptive Statisticsand Moderated Regression Analysis (MRA) are data analysis techniques used in this study. The results found inthis study are proven that absorptive capacity as a moderating variable influences knowledge sharing onemployee performance. Based on the research results, it can be concluded that absorptive capacity is able tofully strengthen knowledge sharing on employee performance. This shows that knowledge sharing has a positiveand significant effect on employee performance, so that if knowledge sharing increases, it will increaseemployee performance, and the resulting moderating effect is to strengthen relationships, in other words if thereis absorptive capacity, knowledge sharing will have a positive effect on employee performance. theMSEsKebenBangli Regency will be further strengthened.

Keywords: knowledge sharing, absorptive capacity, employee performance