The Role of Capability in Mediating Influences Business Orientation, Competence And Marketing Knowledge of Performance Small and Medium Business (UMKM)

This research was conducted based on differences in the focus of discussion about entrepreneurial orientation, competence, marketing knowledge. UMKM capability and performance. In addition, there are also research problems (research problems) about the decline in the development of the cake trade industry in Gianyar Regency in 2018. This research was conducted on MSME entrepreneurs in the cake trade industry in Gianyar Regency with a population and a sample of 55 MSMEs. All data obtained from the questionnaire distribution is feasible to use, then analyzed using PLS 3.0. The results of the study provide that entrepreneurial orientation has a positive and significant effect on capability, competence has a positive and significant effect on capability, marketing knowledge has a positive and significant effect on capability, entrepreneurial orientation has a positive and significant effect on MSME performance, competence has a positive and significant effect on MSME performance, marketing knowledge has a positive and significant effect on MSME performance, capability has a positive and significant effect on MSME performance, entrepreneurial orientation has a positive and significant effect on MSME performance with capabilities as a mediating variable, competence has a positive and significant effect on MSME performance with capabilities as a mediating variable, marketing knowledge a positive and significant effect on the performance of MSMEs with capabilities as a mediating variable. The implication of this research is that capability is able to mediate the variables of entrepreneurial orientation, competence, marketing knowledge on MSME performance.


INTRODUCTION
B ali is one of the provinces in Indonesia which has a rapidly developing industrial sector. From the Data of the Department of Industry and Trade of Gianyar Regency, the number of industries in Gianyar in 2018 as a whole is 4,053, this number has increased compared to the previous year, namely in 2017, amounting to 3,877 industries. In general, industrial development in Bali has increased but the number of cake trade industries in Gianyar has decreased. The development of the industrial sector in Bali is directed at the development of small and medium industries, one of which is the cake trade industry.
The MSME criteria (Micro, Small and Medium Enterprises) trade cake where the goods in the business are not fixed, or can change at any time, the place of running the business can move at any time, the business has not implemented administration, even personal and business finance still unified, human resources (HR) in it do not have a qualified entrepreneurial spirit, usually the level of education of HR is still low and MSMEs in the cake trade industry do not yet have banking access, but some have access to non-bank financial institutions. In Table 1

Supplementary information
The online version of this article (https://doi.org/10.15520/ijcrr.v11i12.87 2) contains supplementary material, which is available to authorized users.

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WIDYARI AND SANICA are in the business criteria mene huh. The cake trade industry in the entire Gianyar Regency totaled 52 business units.
The research according to (Lukiastuti, 2012) said that indirectly, entrepreneurial orientation has a greater influence on SME business performance and the capability of business networks has an influence on its international performance and provides evidence of empirical support for the company's dynamic capability view. The entrepreneurial orientation process is combined with capability configurations which are a potential source of competitive advantage. Hajar Siti and Sukaatmadja (2016) found that entrepreneurial orientation had a positive and significant effect on the marketing performance of clothing retail stores in Denpasar. The results of this study also indicate that clothing retail shops in Denpasar City that have a high entrepreneurial orientation will be able to increase Umkm performance activities and vice versa if clothing retail stores have a low entrepreneurial orientation are certainly not able to increase MSME performance activities, because by having an entrepreneurial orientation A good clothing retail store can then determine a marketing strategy that suits the target clothing retail store market. Apriliani, et al (2016) said that entrepreneurship competence and orientation play an important role in improving the performance of MSMEs. Where the better the ability and orientation of marketing it will improve the performance of MSMEs.
But as for the different results according to research conducted by Mawu, et al (2016) found differences in results in the effect of entrepreneurial orientation on capability, that the size of marketing capabilities in the wooden house industry in Tomohon City was not influenced by entrepreneurial orientation, but entrepreneurial orientation had a significant effect on performance marketing. In addition Suardhika (2012) also found that entrepreneurial orientation did not affect business performance in small and medium-sized businesses in Bali. Likewise, Setyawati (2013) at the UMKM in Kebumen district explained that entrepreneurial orientation had no effect on marketing performance. Trihudiyatmanto and Purwanto (2018) said that marketing knowledge does not have a significant influence on the capability and performance of MSMEs. This is due to the fact that good marketing knowledge cannot improve the capabilities and performance of MSMEs.
Based on the background description of the problem, it is necessary to conduct research on "The role of capabilities in mediating the effect of entrepreneurial orientation, competence and marketing knowledge on the performance of MSME".

Entrepreneurial orientation
Lestari (2014) Entrepreneurial orientation (entrepreneurial orientation) is a company orientation that has principles in efforts to identify and exploit opportunities. According to Weerawardana (2013) to measure entrepreneurial orientation consists of three indicators, including: • Innovation is a company's mechanism to adapt in a dynamic environment, so that companies are required to be able to create judgments and new ideas and offer products that are innovative, unique and have a novelty.
• Proactivity as an act of looking for continuous market opportunities and experiments by using potential responses to trends in environmental change.
• Dare to take risks is risk taking involving the desire to seize opportunities that are likely to cause significant loss or performance mismatch.

• 2. Competence
Compotence refers to the characteristics that underlie the behavior that describes the motives, personal characteristics (characteristics), self-concept, values, knowledge or expertise brought by someone who performs superior in the workplace Yudistira and Siwantara (2014). The indicators according to Kaplan (2017), competence has 5 indicators, namely motives, traits, self concepts, knowledge and skills Motive (consistent) is something that is consistently thought out or desired so as to cause an action. Motives will encourage, direct and determine behavior, towards certain actions or goals and not to others.

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• Traits or innate traits are physical characteristics and consistent responses to situations or information including stimuli and stresses.
• Self concept is the attitude, values, or self-image of someone.
• Knowledge is information that a person has in a specific area.
• Skill is the ability to complete a task or a certain physical or mental work.

Marketing knowledge
Glazer (2013) considers marketing knowledge as a strategic asset of the company. This means that marketing knowledge is one of the valuable assets for the business and provides a competitive advantage for the business, the result provides superior business performance. To measure the competence of marketing knowledge consists of three indicators, including: • Marketing knowledge acquisition (knowledge acquisition) is a process of how that knowledge is obtained.
• Distribution of marketing knowledge Knowledge dissemination or distribution of information illustrates the knowledge from various sources shared and distributed so as to provide impetus for new understanding or understanding.
• Storage of marketing knowledge (organizational memory) means the way how the knowledge is stored for future use.

Capability
Lee & Hsieh (2013) states that in periods of very high competition, companies need to have a competitive advantage in the global market. According to Tsai & Shih (2014), to measure marketing capabilities, there are four indicators including: • Distribution Network is a network used for the distribution of goods from producers to consumers.
• Marketing research is an accurate information retrieval activity in the field of marketing involving consumers, customers and the public to identify and determine marketing opportunities and problems, creating and evaluating marketing activities so that the products produced are always evolving.
• Pricing strategies are in the strategic and tactical policies that entrepreneurs undertake regarding price levels, discount structures, and payment terms.
• Promotion Management is a method used to notify or offer products or services with the aim of attracting potential customers.

MSME Performance
Menon et al (2013) recent research underlines that managerial financial valuation and marketing performance are consistent with objective measures of performance or achievement. In Ferdinand (2016), to measure MSME performance consists of four indicators, including: • Customer growth is the growth rate of the company's market share.
• Sales growth is the degree of growth in sales volume in the last three years.
• The market portion is the size of the contribution of the products handled can dominate the market for similar products compared to other baking trade industries.
• Profitability is the amount of profits derived by the company.

Research Location
This research was conducted in the entire cake trade industry in Gianyar Regency, Payangan District.

Population and Sample
The population in this study were all cake trade business owners in Gianyar Regency and doing business for at least 2 years, as many as 52 business units, spread across 7 (seven) districts in Gianyar. The sample selection method used in this study is a nonprobability sampling method with a sampling technique by saturated sampling (census), where all members of the population were sampled totaling 52 MSMEs.

Data Collection
The data used is quantitative with secondary data sources and data collection techniques by interviewing, and by using instruments in the form of questionnaires.

Research and Testing Instruments
The research instrument test is a tool used by researchers in the social field of research instruments that are often compiled by themselves including testing their validity and reliability.

Data Analysis Techniques
Descriptive analysis test and inferential analysis test

Testing the Direct Effect
The results of the validity of the path coefficient on each path for direct effects and effects can be presented in Table 1 below: Based on Table 1 shows that the results of the tstatistics of all variables> 1.96 which means that the hypothesis is accepted empirically, it can be shown the results of testing the hypothesis presented in the following description:   Based on the results of the analysis conducted, it can be presented a picture of a research model in accordance with the PLS analysis as follows: Figure 3 Testing Indirect Effects Through Mediation Variables

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In testing the following hypotheses, the mediating role of the capability variable (Y) will be examined. The hypothesis testing for indirect effects in this study can be presented in the results of the analysis in Table 2. Table 2 shows that if the effect of the independent variable on the mediating variable and the effect of the mediating variable on the dependent variable is significant, the direct effect of the independent variable on the dependent variable in the model involving mediating variables is significant, and the direct effect of the independent variable on the dependent variable without involving the variable mediation is significant, so it is said to be a partial mediation variable.

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WIDYARI AND SANICA

DISCUSSION
1. The results of hypothesis testing indicate that entrepreneurial orientation has a positive and significant effect on capabilities with a positive path coefficient result of 0.049 with t-statistic 1.986 (t-statistic> 1.96).

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The 5. Hypothesis testing results show that competence has a positive and significant effect on MSME performance with a positive path coefficient result of 0.147 with t-statistic 1.989 (t-statistic> 1.96).
6. The results of hypothesis testing indicate that marketing knowledge has a positive and significant effect on MSME performance with a positive path coefficient result of 0.487 with a t-statistic of 8.489 (t-statistic> 1.96).
7. Hypothesis testing results show that capability has a positive and significant effect on MSME performance with a positive path coefficient result of 0.183 with a t-statistic of 2,337 (t-statistic> 1.96).
8. Hypothesis testing results show that entrepreneurial orientation has a positive and significant effect on the performance of MSMEs with capability as a mediating variable with a positive path coefficient result of 0.213 with t-statistic 4.129 (t-statistic> 1.96).
9. Hypothesis testing results show that competence has a positive and significant effect on the performance of MSMEs with capability as a mediating variable with a positive path coefficient result of 0.313 with a t-statistic 6.917 (t-statistic> 1.96).
10. The results of hypothesis testing indicate that marketing knowledge has a positive and significant effect on the performance of MSMEs with capability as a mediating variable with a positive path coefficient result of 0.494 with a t-statistic of 9,436 (t-statistic> 1.96).

CONCLUSION
1. Entrepreneurial orientation (X1) has a positive and significant effect on capability (Y). This means that the better the entrepreneurial orientation, the better the capability of MSME entrepreneurs.
2. Competence (X2) has a positive and significant effect on capabilities (Y). This means that the better the competence, the better the capability of MSME business actors.
3. Marketing knowledge (X3) has a positive and significant effect on capabilities (Y). This means that the better marketing knowledge can improve the capability of MSME entrepreneurs.
4. Entrepreneurial orientation (X1) has a positive and significant effect on the performance of MSMEs (Z). This means that the better the entrepreneurial orientation, the better the performance of MSMEs can be.

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WIDYARI AND SANICA means that the better the capability is able to improve the performance of MSMEs.
8. Entrepreneurial orientation (X1) has a positive and significant effect on MSME performance (Z) with capability (Y) as a mediating variable. This means that the better the entrepreneurial orientation, the better the capability and performance of UMKM.
9. Competence (X2) has a positive and significant effect on MSME performance (Z) with capability (Y) as a mediating variable. This means that the better the competence, the better the capability and performance of UMKM.
10. Marketing knowledge (X3) has a positive and significant effect on the performance of MSMEs (Z) with capability (Y) as a mediating variable. This means that the better marketing knowledge can improve the capabilities and performance of MSMEs.

THEORY IMPLICATIONS
The results of this study have shown that capabilities are capable positively mediate the effect of entrepreneurial orientation, competence, marketing knowledge on MSME performance. Based on these findings, the results of this study are able to enrich the development of human resource management science, especially related to the performance of MSMEs and support other empirical studies related to the influence of capability to positively mediate the effect of entrepreneurial orientation, competence, marketing knowledge on the performance of MSMEs in the baking industry in Gianyar Regency.

PRACTICAL IMPLICATIONS
1. Competence has the most influence in determining capabilities compared to entrepreneurial orientation and marketing knowledge. This explains that the MSMEs prioritize their competence in increasing the capability of MSMEs.
Where MSME actors are more focused on increasing their competence so that the capability of MSME perpetrators is increasing. Furthermore, the evaluation of entrepreneurial orientation needs to be considered consistently so that it can always improve the capabilities of MSME entrepreneurs.
2. Based on the results of the study it can also be seen that the influence of marketing knowledge has the greatest influence on the performance of MSMEs, so that it can be interpreted that users of MSMEs do not directly perform entrepreneurial orientation and the competencies they obtain, but they will analyze them first.
3. Capability variables were also found to have a positive and significant influence on MSME performance. This can be reassessed by MSME entrepreneurs to consistently have an entrepreneurial orientation, competence and marketing knowledge. This certainly will be related to the performance of MSMEs.

POLICY IMPLICATIONS
1. Research results obtained from a questionnaire that has been distributed to 52 MSMEs, competency variables have the highest influence on capabilities, compared to the entrepreneurial orientation and marketing knowledge variables. Researchers suggest to the management to be able to improve the competence of MSME actors where MSEs must be consistent with their attitudes so that the capabilities of MSME actors can increase as expected.
2. Research results obtained from a questionnaire that has been distributed to 52 MSMEs, marketing knowledge variables have the highest influence on MSME performance, compared to the variables of competence and entrepreneurial orientation. Researchers suggest to the management to be able to increase the marketing knowledge of MSME actors where MSEs should be accustomed to adding knowledge about marketing in the face of future market changes in order to be able to compete.
3. Research results obtained from a questionnaire that has been distributed to 52 MSMEs, capability variables have a positive and significant effect on MSME performance. Researchers

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suggest to management to be able to improve capabilities by paying attention to sales data in order to be able to analyze market potential.

GUIDELINES FOR UPCOMING RE-SEARCHERS
Future researchers can replicate this research model through a longitudinal approach, and allow it to be used in other institutions. In addition, future researchers can modify the research model by adding or developing indicators and other variables such as service quality, brand image, customer satisfaction and price. This is based on the factors that influence the performance of MSMEs quite a lot and are different from the conditions of the institution of one another.