Mediation of Knowledge Sharing and Commitment in the Relationship of Transformational Leadership on SMEs' Performance

Small and medium-sized enterprises (SMEs) are important to the national economy and can employ many workers. A company's success is heavily influenced by the quality level of its human resources. As a result, SMEs must be able to prepare their human resources, particularly in the role of a company leader. This study aims to improve the performance of SMEs, particularly food and beverage SMEs, by using the concept of mediating knowledge sharing and a company leader's commitment. The research sample consists of 160 SMEs with a minimum of 10 employees at the management level. The method used for analyzing knowledge sharing and commitment mediation is direct influence analysis between variables, followed by the Sobel test. Based on research findings, knowledge sharing and commitment effectively mediate the relationship between transformational leadership and company performance. Therefore, a leader's attitude that is committed to carrying out the company's vision and mission and can motivate his employees to continue learning can be beneficial to the company. These findings have significant theoretical implications and information that interest stakeholders in SME sustainability practices.