Karya tulis ini menggunakan teknik pemodelan SEM untuk memverifikasi model teoritis dari manajemen pengetahuan. Tujuan dari studi ini adalah untuk menjelaskan pengaruh Knowledge management terhadap kinerja perusahaan. Analisis empiris memperkirakan pengaruh Knowledge management terhadap kinerja UKM menggunakan data yang dikumpulkan melalui kuesioner, diisi oleh 108 UKM. Model penelitian ini terdiri dari enam dimensi utama; (1) Use of knowledge, (2) Knowledge acquisition, (3) Knowledge storage, (4) Motivation, (5) measuring the efficiency of knowledge management implementation, and (6) knowledge transfer, namun demikian, kinerja perusahaan diukur oleh Growth UKM dan Profitability UKM.

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This study use SEM as a techique model to verify theoritical modelling from knowledge management. The purpose of this study is to explain the evidance of knowledge management to company performance. An empirical analysis estimate the evidance of knowledge management againt SME performance using the data that collected by quistionnaire, and it filled by 108 SME's.

The model of this this study consist of 6 primary dimenssion : (1) Use of knowledge, (2) Knowledge acquisition, (3) Knowledge storage, (4) Motivation, (5) measuring the efficiency of knowledge management implementation, and (6) knowledge transfer. Otherwise the company performance is measure by SMEs Growth and SMEs Profitability.