Enhancing Organizational Performance Through Accelerated Knowledge Creation, with Innovation Quality and Speed as Mediating Variables: A Second-Order Analysis

This research investigates whether the speed and quality of innovation play a mediating role in the connection between knowledge creation (KC) and the performance of rural banks in Bali, Indonesia. Data for the study were gathered through a questionnaire distributed to managers of rural banks in Bali. The analysis was conducted at the organizational level, and the dataset encompassed responses from 102 rural banks. The data underwent analysis using Structural Equation Modelling with Partial Least Squares (SEM-PLS). The results reveal that both KC and the speed and quality of innovation exert significantly positive influences on organizational performance. Additionally, KC demonstrates a substantial positive impact on the speed and quality of innovation. The study also indicates that the speed and quality of innovation partly mediate the effect of KC on organizational performance. In practical terms, this research offers valuable insights for rural bank managers in Bali, highlighting the benefits of continuing to prioritize knowledge creation, as it enhances organizational performance and empowers organizations to innovate swiftly and effectively. This research is notable for its exploration of the mediating role of innovation speed and quality in the relationship between knowledge creation and organizational performance in rural banks in Bali, Indonesia.