This study aims to determine the effect of open and closed sources of knowledge on
the innovation performance of SMEs in Bali. The object of this research is UKM in
Bali Province. The purposive sampling technique was used for sampling and data
collection was carried out by distributing questionnaires to 202 owners or
operational managers of UKM in Bali. Analyzed using validity test, reliability test,
classical assumption test, multiple linear regression test, simultaneous significance
test (F test), independent variable significance test (T test), correlation coefficient
test (R), and determination coefficient test (R2 test). The results of this research
indicate that open sources of knowledge (internal and external oriented knowledge
sources) have a positive effect on the innovation performance of SMEs in Bali and
closed sources of knowledge (internal-oriented knowledge sources) have a positive
effect on the innovation performance of SMEs in Bali