The Effect of Knowledge Management, Entrepreneurial Motive and Community Culture in Enhancing Competitive Advantages for Small and Medium Industries (IKM) in Pekanbaru, Riau

This research was intended to understand the effect of knowledge management, entrepreneurial motive and community culture in enhancing competitive advantages for Small and Medium Industries (IKM) in Pekanbaru, Riau. The population of this research was the Small and Medium Industries (IKM) entrepreneurs covered 369 people. The sample size was determined by Slovin formula with the number of 78 respondents. The data was collected by using questionnaire which was distributed directly to the respondents. The analysis tool used was Multiple Linear Regression by using the factor analysis with SPSS version 21. The f-test result showed that all variables consisted of the knowledge management, entrepreneurial motive and community culture had the effect of 24,89 with the significance level 0.00 towards the competitive advantages. The t-test result in hypothesis testing 1 showed that there was an effect of knowledge management toward competitive advantages, while hypothesis testing 2 showed that there was no effect of entrepreneurial motive toward competitive advantages and hypothesis testing 3 showed that there was an effect of community culture toward competitive advantages. Keywords: knowledge management, entrepreneurial motive, community culture, and competitive advantages