TY - JOUR AB - Purpose This paper examines how market orientation and competence of knowledge reinforce the innovation and in turn improve the business performance.Design/methodology/approach This research applied research design with quantitative approach based on positivism philosophy, that is, research aimed to test the theory and data which is general to produce findings that are special through hypothesis test. This study was supplemented by field studies as a necessary source of data in the form of trends, attitudes, opinions, perceptions of owners, managers or senior employees of SMEs in the textile industry in Bali, related to the variables used in this study.Findings (1) Market orientation influences business performance, (2) competence of knowledge moderates the influence of market orientation on business performance, (3) innovation moderates the influence of market orientation on business performance.Originality/value (1) Novelty of this research is developing the concept of competence of knowledge associated with business performance in which this relationship has not yet been expressed. (2) Building the concept of innovation development of small-scale industry based on the market orientation. (3) Developing the concept of innovative development of small and medium enterprises of textile industry based on competence of knowledge. (4) Investigating the concept of market orientation and competence of knowledge in an integrated and holistic way to strengthen the innovation and business performance of SMEs of the textile industry in Bali. VL - 26 IS - 6 SN - 1463-7154 DO - 10.1108/BPMJ-06-2019-0236 UR - https://doi.org/10.1108/BPMJ-06-2019-0236 AU - Usman Irwan AU - Maupa Haris AU - Idrus Muhammad AU - Haerani Siti AU - Nurjanna Nurjanna PY - 2020 Y1 - 2020/01/01 TI - Moderation effect of competence of knowledge and innovation: case of Bali T2 - Business Process Management Journal PB - Emerald Publishing Limited SP - 1307 EP - 1327 Y2 - 2024/04/20 ER -