KNOWLEDGE CREATION AND RELIGIOUS HEURISTIC DECISION

Abstract

The COVID-19 pandemic has significantly affected economic dynamics. In this context, BUMDes (Village-Owned Enterprises) play an innovative role supported by human resources with strong knowledge in quality management, enabling improved and sustainable organizational performance. Religiously based decision-making heuristics can assist human resources in enhancing organizational outcomes.
This study investigates the relationship between knowledge creation, organizational performance, and heuristic decision-making that incorporates religious values. BUMDes, particularly in Kendal Regency, require focused attention to address various challenges in driving the rural economy. The research employs a mediation analysis using regression and the Sobel test. Primary data were collected through questionnaires and analyzed using Structural Equation Modeling with Partial Least Squares (SEM-PLS). The findings were then discussed in depth. The results indicate that knowledge creation significantly contributes to enhancing the sustainable performance of BUMDes. Additionally, the ability of BUMDes managers to generate knowledge has a positive influence on religiously grounded heuristic decision-making. Such religious heuristics serve as a critical factor in improving BUMDes performance. This research is highly relevant in the context of strengthening the performance of BUMDes.