Abstract

Purpose: This research introduces a novel concept, Knowledge Acquisition Efficacy (KAE), aiming to improve SMEs' performance. Method: The study involved 215 owners of Muslimah fashion SMEs in Indonesia and was analyzed using SEM AMOS 22. Results: The findings indicated that focusing on KAE through explorative and exploitative Learning and the monotheistic paradigm improved SME performance. However, innovation behavior did not significantly influence performance. The study also identified other factors influencing KAE, suggesting the need for further research to explore whether monotheistic values influence innovation behavior and performance. While limited to Muslim fashion SMEs, the study underscores the importance of supporting innovation behavior and knowledge acquisition to boost performance.

Keywords

Tawhidic Paradigm, Knowledge Acquisition, Self Efficacy, Entrepreneurial Learning.