Ekuitas: Jurnal Ekonomi dan Keuangan Akreditasi No. 158/E/KPT/2021 DOI: 10. 24034/j25485024. p-ISSN 2548 Ae 298X e-ISSN 2548 Ae 5024 ROLE OF MOTIVATION TO INNOVATION BEHAVIOR WITH KNOWLEDGE AS MEDIATING VARIABLE IN FEMALE BUSINESS OWNERS Helmi Buyung Aulia Safrizal safrizal@trunojoyo. Trunojoyo University Madura. Indonesia Vasio Sarmento Soares Institute of Business. Dili. Timor Timur Muhammad Ali Ahmad Ziauddin University Karachi ABSTRAK Penelitian ini bertujuan untuk menguji dan menganalisis prediktor perilaku inovasi yaitu motivasi . kstrinsik dan intrinsi. dan pengetahuan yang baik. Desain/Metodologi penelitian yang digunakan dalam penelitian ini adalah kuantitatif dengan survei yang digunakan untuk mengumpulkan data dari 215 responden perempuan sektor UMKM di Madura. Data yang telah dikumpulkan dianalisis dengan SEM-PLS. Hasil penelitian menunjukkan bahwa semua hipotesis dapat diterima dengan hipotesis langsung maupun tidak langsung tentang pengetahuan yang baik mampu menjadi variabel mediasi yang memiliki dampak positif dan signifikan, demikian juga untuk uji pengaruh langsung yang menunjukkan hasil pengaruh yang positif dan signifikan. Hasil penelitian ini menunjukkan secara terperinci dan jelas bahwa variabel pengetahuan yang baik mampu menjadi prediktor yang baik dari keberhasilan dalam perilaku inovatif dalam membuat karya seni yang dalam hal ini adalah produk batik sebagai salah satu karakteristik budaya Madura. Kebaruan dalam penelitian ini adalah keberhasilan pengetahuan yang baik yang dimiliki oleh perempuan dalam membuat produk yang lebih bernilai. Kata kunci: perilaku inovasi, pengetahuan yang baik, motivasi intrinsik, motivasi ekstrinsik ABSTRACT The objective of this research is to examine and analyze predictors of innovation behavior, namely motivation . xtrinsic and intrinsi. and good knowledge. Therefore, it employs a quantitative research methodology, using a survey to collect data. Two hundred fifteen female respondents in SMEs in Madura have been collected for the data processes using SEM-PLS. The results indicate that all hypotheses were accepted. Both direct and indirect hypotheses demonstrate that knowledge can serve as a mediating variable in the indirect influence test. This research shows that good knowledge has a positive and significant impact. Similarly, the direct influence test also shows positive and significant results. The independent variable on adequate knowledge can be a good predictor of success as innovative behavior in making art, specifically producing batik. It has been one of cultural characteristics of the Maduranese community. The novelty in this research lies in the success of the valuable knowledge possessed by women in creating more valuable products. Keywords: innovation behavior, good knowledge, intrinsic motivation, extrinsic motivation. INTRODUCTION Due to the unstable growth caused by the COVID-19 pandemic, many factors are struggling to survive. One of the factors experiencing the impact of the virus is the economic sector (Kamanga, 2. So various efforts are made to maintain, at least to survive for economical problems. Various efforts were made to maintain life. One of which is the activity of creating something that has added value (Alessa & Durugbo, 2021. Javed et al. Salam, 2. The added value in this case is produced by entrepreneurs in the form of products that have creative arts and innovation Ekuitas: Jurnal Ekonomi dan Keuangan Ae Volume 9. Number 2. June 2025 : 321 Ae 335 so that they can help economic sustainability (Thurlings et al. , 2. Entrepreneurship is an activity carried out by an individual or group to channel creativity or create a product with economic value. This is done not only as a hobby but also due to economic demands (Akrout & Damak, 2022. Chang et al. , 2020. Hachicha & Mezghani, 2. On the other hand, this is because there is a firm intention that what has been done leads to a substantial positive impact (Ajzen, 1991. Lang et al. , 2021. Tiwari et al. , 2. An interesting thing presented by entrepreneurs is innovation behavior (Saether, 2019. Venketsamy & Lew. Innovative behavior is the ability and understanding of an individual to create products using specific techniques that result in products with distinct characteristics (Devloo et al. , 2. According to Logahan et . , innovation behavior is driven by a strong desire to create something with unique This new product is an idea because it builds on a solid understanding of knowledge and skills (Javed et al. , 2019. Solhi & Rahmanian, 2. One of the innovative behaviors carried out by several people in Madura is the creation of unique products by businesspeople. Madura is a unique region in East Java, known not only as the salt island but also for its exciting batik products. Entrepreneurs, especially women, produce these batiks. Several factors that support the formation of innovative behavior include good knowledge, intrinsic and extrinsic motivation (Khan et al. , 2020. Solhi & Rahmanian, 2016. Thurlings et al. , 2. Several factors that help a business survive in achieving its vision and mission are the behaviors of people who were deliberately created. Good knowledge is insight possessed by someone who can provide a good solution, which, of course, leads to positive benefits (Belay et al. , 2023. Corney, 2. From this, a product will be valuable in the On the other hand, innovative behavior can also arise due to intrinsic factors. It exists within oneself without any influence from external parties, related to one's own encouragement or inspiration to complete individual tasks. This type of motivation, derived from within a person, leads to a specific goal (Siyal et al. , 2021. Deci & Ryan, 1. In contrast, extrinsic motivation factors derive from within a person and lead to a particular goal (Deci & Ryan, 2. The phenomenon in Madura shows that many women have businesses to survive, specifically by becoming entrepreneurs focused on making handmade batik. Their desire can support their family's economy and continue a long-standing family business. THEORETICAL REVIEW Madura Island Madura is an archipelago in Indonesia which is to the east of the island of Java, has an area of 5,379km2, the population will reach more than 4 million people in 2023, where the archipelago and the surrounding waters and Madura Island are one of the salt producers the largest in Indonesia. Madura Island is called the 'salt island (Kontributor, 2. Madura Island can be said to be similar to the body of a cow, consisting of four districts AiBangkalan. Sampang. Pemekasan, and Sumenep Aiwhich have a relatively long history of arts and This island is dominated by the majority Madurese ethnic group, which has the largest population of 12 million people spread throughout Indonesia(Kontributor. Entrepreneurship Entrepreneurship focuses on creating something that can produce value, and in doing so, it is necessary to have a unique resource that can be seen as an opportunity (Abd-hamid et al. Ahl et al. , 2. On the other hand, entrepreneurship requires unlimited multitalent and multidisciplinary knowledge. What is attractive is that entrepreneurship that can increase economic growth and become a reliable area to ensure competitive advantages. Innovative behavior Innovative behavior is a process carried out by a person. It includes stages interconnected Role of Motivation to Innovation Behavior. Ae Safrizal. Soares. Ahmad with each other, namely planning, creating, promoting, and implementing the ideas. They have to create a product with its own characteristics which obviously can be enjoyed by many people (Gupta, 2020. Liu et al. , 2. Innovative behavior is closely related to work performance, making it more easily accepted in the environment. Extrinsic Motivation Business carried out by a person is closely linked to the existence of extrinsic motivation. It is a form of reward for all the work that has been done. Extrinsic motivation can take the form of money, promotions, salaries, wages, and vacations that can be enjoyed with the An exciting aspect is encountered from other parties, which can come from friends and The influence may come from experienced people who help enhance actors in their work. So, they can maintain the continuity of their business activities. Several previous studies (Putra et al. , 2015. Vasil, 2015. Weaver, 1. have found evidence of a relationship between extrinsic motivation and a person's knowledge, which influences the performance results achieved. H1: Extrinsic influences good knowledge H2: Extrinsic influences on innovative behavior H3: Extrinsic motivation has an influence on innovative behavior through good Intrinsic motivation Intrinsic motivation originates within a person because there is an internal drive or desire about what will be done. The completed works can be challenging and benefit not only oneself, but also the organization and the environment around them (Putra et al. , 2. Intrinsic motivation is an activity carried out by a person to achieve satisfaction with what they have felt. However, it cannot be separated from its consequences. What a person does is obviously based on a strong desire within oneself. What has been done can provide a meaning, even though the work is complex or even challenging. The desire is not because of the reward in the form of money but because of the pleasure that exists within (Deci & Ryan, 2000. Deci & Ryan, 1. Several studies state that intrinsic motivation resides within oneself. What one does is interesting and provides a challenge, leading to satisfaction (Kundu et , 2020. Su & Chen, 2020. Venketsamy & Lew, 2022. Zhu & Xin, 2. H4: Intrinsic motivation influences good H5: Intrinsic motivation influences innovation H6: Intrinsic motivation influences innovation behavior through good knowledge. Good knowledge In the business world, it can be said to be a person's ability to create a product or service that can attract users. So knowledge focuses on how much insight and expertise a person has to create a product that can provide benefits not only to time orientation but more towards how users can feel comfortable in using the product (Alhogail, 2020. Gyrlek, 2. Someone whose definitive knowledge has a strong emotional connection to the product they produce. Their hopes are able to give an impression that is not only environment friendly, but also to all ages can enjoy for their creative products (Krishna et al. , 2020. Marinoromero & Palos-sanchez, 2023. Zhang et al. Therefore, the research framework of this study is presented in Figure 1. Ekuitas: Jurnal Ekonomi dan Keuangan Ae Volume 9. Number 2. June 2025 : 321 Ae 335 Figure 1 Research Framework Source: Developed by Author, 2023 RESEARCH METHODS This study conducts quantitative method. Its data is collected through questionnaires distributed to respondents representing the The respondents in this research are traditional . batik business actors who have been running their business in the Maduranese island for more than 3 years. These perpetrators were first classified as After the data was collected, it was processed using SmartPLS (SEM) software. The important tests include reliability, validity, goodness of fit evaluation, and influence testing. RESULTS The research had a total of 215 respondents who completed the survey perfectly. all of them were female. They are among the most important family members who can help improve the family's economy. They are not only mothers but also contribute to sustaining the continuity of a family in the face of uncertain environmental changes. The income earned every month is on average between 3-4 million with a total of 180 people. Arguably, the women can work as additional income for their family Then, the respondents earn between 500 to 2 million with a total of 30 people. This study is dominated by respondents who have income above 5. 5 million per month. Hence, the income factor triggers an intense desire among batik business players to strive to create innovative products to increase their income. Ninety percent of respondents use cultural motives of the Madura Islands. They indicate that these business people maintain the culture by combining existing knowledge to create a unique impression. Around 85 percent of the products are handmade, produced by Maduranese business people, involving drawing and coloring. Consumers and customers prefer handmade products because their art involves unque skills that not everyone Measurement Model Based on the analysis results in Table 1, all questionnaire items have a loading factor value of more than 0. The data indicate that all indicators are valid and significant in forming their respective latent variables. Referring to Table 1, the AVE value is Ou 0. So that all variables used in the research have convergent validity parameters that are suitable for use. Role of Motivation to Innovation Behavior. Ae Safrizal. Soares. Ahmad Table 1 Convergent Validity Testing Variable Extrinsic Motivation Good Knowledge Innovation Behavior Intrinsic Motivation Indicator EX1 EX2 EX3 EX4 EX5 EX6 EX7 EX8 GK 1 GK 2 GK 3 GK4 GK 5 GK 6 GK 7 GK 8 GK 9 IB1 IB2 IB3 IB4 IB5 IB6 IB7 INT1 INT2 INT3 INT4 INT5 INT6 INT7 INT8 Outer Loading AVE Source: Processed Data, 2023 Based on the analysis results in Table 2, each indicator shows as cross-loading on its respective variable, with a value greater than the cross-loading value for the other variables in the model. As the results in Table 3, the Cronbach's alpha and composite reliability values of each latent variable are more than 0. So, each indicator is reliable, with accuracy, consistency, and precision in measuring the latent variable. Ekuitas: Jurnal Ekonomi dan Keuangan Ae Volume 9. Number 2. June 2025 : 321 Ae 335 Table 2 Cross Loading Indicator EX1 EX2 EX3 EX4 EX5 EX6 EX7 EX8 GK 1 GK 2 GK 3 GK4 GK 5 GK 6 GK 7 GK 8 GK 9 IB1 IB2 IB3 IB4 IB5 IB6 IB7 INT1 INT2 INT3 INT4 INT5 INT6 INT7 INT8 Extrinsic Motivation Good Knowledge Innovation Behavior Intrinsic Motivation Source: Processed Data, 2023 Table 3 Reliability Table Variable Extrinsic Motivation Good Knowledge Innovation Behavior Intrinsic Motivation Source: Processed Data, 2023 Cronbach's Alpha Composite Reliability Role of Motivation to Innovation Behavior. Ae Safrizal. Soares. Ahmad Table 4 Coefficient of Determination (R. Variable R Square Good Knowledge Innovation Behavior Source: Processed Data, 2023 Structural Model The structural model is presented in Figure 2. Based on the analysis results shown in Table 4, the value for "good knowledge" 531, or 53. 1%, indicating that exogenous variables explain this diversity. In comparison, the remaining variance can be attributed to variables not included in the model , indicating that the diversity of variable values in innovation behavior, as explained by exogenous variables, is 64. In contrast, the rest can be explained by other variables that are not in the model. Q2 = 1 Ae . Ae R ). Ae R ) = 0,843 Q2 = 0. 843, this value shows that the exogenous latent variable has good model predictive ability, in other words, the exogenous latent variable is good . as a latent variable that can explain the endogenous variables in the model Theoretical Review Figure 2 Structural Equation Model Source: Processed Data, 2023 Table 5 Direct Effect Test Variable Original Sample (O) Sample Mean (M) Standard Deviation (STDEV) T Statistics (O/STDEV) P Values Extrinsic motivation -> Good Knowledge 7,561 0,000 Ekuitas: Jurnal Ekonomi dan Keuangan Ae Volume 9. Number 2. June 2025 : 321 Ae 335 Variable Extrinsic Motivation -> Innovation Behavior Good knowledge -> Innovation Behavior Intrinsic motivation -> Good Knowledge Intrinsic motivation -> Innovation Behavior Original Sample (O) Sample Mean (M) Standard Deviation (STDEV) T Statistics (O/STDEV) P Values 2,258 6,003 0,000 7,909 0,000 2,869 Source: Processed Data, 2023 Table 6 Indirect Effect Test Variable Extrinsic motivation -> Good Knowledge -> Innovation Behavior Intrinsic motivation -> Good Knowledge -> Innovation Behavior Original Sample (O) Sample Mean (M) Standard Deviation (STDEV) T Statistics (O/STDEV|) P Values 4,059 0,000 5,077 0,000 Source: Processed Data, 2023 The analysis results in Table 5 indicate that the p-value is less than 0. In conclusion, extrinsic motivation, good knowledge, and intrinsic motivation have a direct influence on innovative behaviour. The result also shows that extrinsic motivation and intrinsic motivation have a direct influence on good From Table 6, the p-value is less 05, allowing us to conclude that good knowledge can mediate the influence of exogenous variables on endogenous ones. Extrinsic Motivation Influences Good Knowledge There is an environmental influence in the form of successful predecessors. The perpetrators with extrinsic motivation possess good knowledge. The perpetrators, in this case, the women, are highly motivated despite being busy as mothers. They also take household, with enthusiasm from external parties, positively impacts knowledge. The results of this research are similar to prior findings (AleksiN. Rangus. , & Slavec Gomezel, 2022. Butt & Ahmad, 2019. Carsrud et al. , 2. Extrinsic Motivation Affects Innovation Behaviour The full support may come from external parties, such as MSME batik craftsmen. The batik is processed using traditional tools or more handmade methods. It has a strong influence on the creation of products with unique characteristics. The existence of support from family, relatives, and friends can influence perpetrators to behave in a way that differentiates the product from others. The results of this research are supported by previous studies (Geri. Gafni. , 2017. Law. Chan. , & Ozer, 2016. Nguyen et , 2. They indicate that external support can influence behavior that can produce something creative. Role of Motivation to Innovation Behavior. Ae Safrizal. Soares. Ahmad Good Knowledge Mediates The Effect of Extrinsic Motivation on Innovative Behavior The expertise and understanding of MSME actors who have applied to a product can play a crucial role in mediating the influence of external support. These include inspiration and moral support, which can shape specific behaviors, including innovation. The result is supported by previous findings (Geri. Gafni. , 2017. Law. Chan. & Ozer, 2016. Nguyen et al. , 2. Intrinsic Motivation Affect Good Knowledge There is an urge within oneself that makes a person want to carry out a particular behavior. Their motivation exists within oneself in the form of the fact that what is done has been thought about beforehand. The existence of strength within oneself relates to the abilities one has will create the strength to behave in a certain way. For MSME actors, especially mothers, they already understand the risks they will face beforehand. Thus, having the ability within themselves will encourage the actors to have a strong belief that they can provide something of value (Rover, 2013. Sedighi et al. Yoo, 2. Intrinsic Motivation Affect Innovative Behavior Innovative behavior manifested in a particular product requires the expertise and skills of MSME actors. Naturally, it also requires an inner drive and a strong belief that MSME actors can innovate to create a good product. The resulting product is distinguished from other products as identified by prior research (Cui & Yu, 2021. Liu et al. , 2021. Niu, 2. Good Knowledge Mediates The Influence of Intrinsic Motivation on Innovative Behavior The knowledge possessed by MSME actors has excellent value. This certainly makes individuals more confident that their knowledge can mediate the influence of intrinsic motivation on innovative behavior (Shin et al. , 2016. Yuan & Wu, 2. Their behavior is influenced by their ability to create a product of greater value due to a strong internal drive, combined with sound knowledge, which serves as a good influence and mediation in this influence test (Yu et al. Good Knowledge Affects Innovative Behavior A person certainly possesses knowledge that should not be underestimated. For example, the knowledge of MSME actors can inspire creativity, leading to innovative behavior (Pian et al. , 2019. Rover, 2. The innovative behavior can be realized well because of one's good knowledge. The knowledge is exemplary from someone who has always sought to improve things he feels do not have a positive impact. Good knowledge will affect innovative behavior (Choi. Kim. Ullah. , & Kang, 2016. Tsai, 2. DISCUSSION Extrinsic motivation influences the acquisition of knowledge through support from the environment and successful predecessors. The perpetrators with extrinsic motivation possess good knowledge. The perpetrators, in this case, the women, are highly motivated despite being busy as mothers. Their household are derived with enthusiasm from external parties, positively impacts knowledge. The results of this research are supported by (AleksiN. Rangus. , & Slavec Gomezel. Butt & Ahmad, 2019. Carsrud et al. , 2. This study shows that extrinsic motivation influences innovation behavior. The full support from external parties given to MSME batik craftsmen, especially for batik processed using traditional tools or more towards handmade, strongly influences their behavior to create products with unique characteristics. The existence of support from family, relatives, and friends can lead perpetrators to behave in ways that differentiate the product from others (Geri. Gafni. , 2017. Law et al. , 2016. Nguyen et al. , 2. The results of previous Ekuitas: Jurnal Ekonomi dan Keuangan Ae Volume 9. Number 2. June 2025 : 321 Ae 335 research indicate that external support can influence behavior that can produce more creative products. Moreover, this study finds that good knowledge mediates the influence of extrinsic motivation on innovative behavior. The insight, expertise and understanding possessed by MSME actors which are applied in a product can play an important role in mediating the influence of support provided by external parties in the form of inspiration and moral support that can influence the formation of particular behavior in the form of innovation Such results are relevant to to prior findings (Geri. Gafni. , 2017. Law. Chan. , & Ozer, 2016. Nguyen et al. , 2. This study also shows that intrinsic motivation influences good knowledge. There is an urge within oneself that makes a person want to carry out a specific behavior. The motivation that exists within oneself in the form of what is done has been thought about beforehand. Their strength within oneself with adequate abilities will create the strength to behave in a certain way. In this study. MSME actors, especially mothers, already understand the risks they will face So having the ability within themselves will encourage the actors to have a strong belief that they can provide a valueable thing. The test is based on previous research (Rover, 2013. Sedighi et al. , 2018. Yoo, 2. This study also indicates that intrinsic motivation influences innovative behavior. Innovative behavior manifested in a particular product requires the expertise and skills of MSME actors. Naturally, the desire demands an inner drive, a strong belief that MSME actors can innovate in a way that results in a good product. The resulting product is differentiated from other products as supported by previous research (Cui & Yu. Liu et al. , 2021. Niu, 2. In the context of female entrepreneurship, intrinsic motivation often includes passion for social impact, community empowerment, or self-realization rather than purely economic gain (Brush. , & Cooper, 2. Women entrepreneurs frequently emphasize relational and social outcomes in their innovation goals, such as improving well-being, sustainability, or inclusion (Henry et al. , 2. Good knowledge in this study mediates the influence of intrinsic motivation on innovative behavior and directly affects it. The knowledge possessed by MSME actors has significant value. The condition certainly makes individuals more confident since their knowledge can mediate the influence of intrinsic motivation on innovative behavior (Shin et al. , 2016. Yuan & Wu, 2. The behavior of a person is influenced by their ability to create a product of greater value, driven by a strong internal motivation, combined with their knowledge. All influence the acts for a positive influence and mediation in the research test (Yu et al. , 2. Furthermore, a person certainly possesses invaluable knowledge. The knowledge held by MSME actors can inspire creativity, leading to innovative behavior (Pian et al. , 2019. Rover. One's innovative behavior can be effectively realized because of their good Such a person has always tried to improve things he feels do not have a positive impact, believing that this knowledge will foster active behavior (Choi et al. , 2. CONCLUSION In this study, all hypotheses show significant results, indicating that the antecedents play an important role in shaping innovation behavior. The possession of good knowledge is important for an individual. The knowledge acquired is not only theoretical but also practical. It is an appropriate combination. Good knowledge must be applied to those who need to fulfill roles in both extrinsic and intrinsic motivation as entrepreneurs. Theoretical Implications The tested and analyzed variables demonstrate that behavioral theory is essential in shaping individual behavior to create a product with added value, not only from an economic perspective, but also from a cultural It also provides value or points. Apart Role of Motivation to Innovation Behavior. Ae Safrizal. Soares. Ahmad from behavior, it is also influenced by intrinsic and extrinsic motivation. Practical implications This study results recommend some significant and practical implications. The first implication is for MSME players. In particular, the product players use traditional and handmade systems in which sustainability must be maintained in order to survive. The second is for employees in the batik industry. They have its own art and uniqueness of batik since one culture remains sustainable and The three behavioral innovations are significant in producing products with added value because innovative behavior becomes a competitive advantage, enabling the company to face competition. This study also convince that good knowledge can be a good dimensional variable for motivation towards innovative behavior in producing a product that has its own uniqueness. Therefore. MSME actors are advised by these findings to encourage and facilitate opportunities for teams to exchange and share knowledge. The action will be a constructive way to increase employee innovation levels. Limitations This research focuses on two limitations. Firstly. MSME actors, especially women, have a hectic time. However, women can provide a solution in dealing with dynamics. Secondly, ithis study only focuses on batik as a form of culture that has been passed down from generation to generation. In this research, batik is made by hand from processing until the batik is ready to be used by customers. In other cases, batik should be preserved. REFERENCE