 Correspondence to : purnamarina71@gmail.com Received: July, 20, 2020 Revised: Sep, 2, 2020 Accepted: Sep, 10, 2020 JURNAL AKUNTANSI, MANAJEMEN DAN EKONOMI Vol.22, No. 3, pp. 21 - 29 Published online in http://jos.unsoed.ac.id/index.php/jame ISSN: 1410-9336 / E-ISSN: 2620-8482 INTRODUCTION Dynamic capabilities enable companies to adapt to a rapidly changing and risky environment by responding swiftly and nimbly. This is because dynamic capabilities create the ability to innovate and adapt to changing environments (Teece & Leih, 2016). Considering the rapid development in the automotive sector, companies must have good dynamic capabilities, and this must be supported by the company's resources, human resources and other resources owned by the company. It is difficult for companies to be able to survive in situations of intense competition in the traditional way. Many physical assets, the amount of investment can no longer guarantee the success of the company. Where the company's ability to manage intangible assets is far more important than just managing the physical assets they have. Founded in 1956, Jinan General Auto Works Plant, the predecessor of China National Heavy Duty Truck Group Co., Ltd. (SINOTRUK), is the cradle of China’s heavy- duty truck industry. The works manufactured China’s first heavy-duty truck – Huanghe JN150 8t truck in 1960, and introduced a heavy-duty truck project from Steyr in 1983 as China’s first enterprise that introduced heavy truck manufacturing technologies from abroad in an all-round manner. SINOTRUK was established following the reform and restructuring in 2001, and has become a domestic and overseas famous heavy-duty truck R & D and manufacturing conglomerate after a dozen years of development. We have initially built an international platform through the red-chip listing in Hong Kong in 2007; in 2009, we forged a strategic partnership with MAN which holding a 25%+1 stake in SINOTRUK (Hong Kong) Limited, and introduced D08, D20 and D26 engine technologies, medium & heavy-duty truck axle technologies and corresponding vehicle technologies, laying a solid foundation for our long-term development. To date, we have become China’s largest heavy truck manufacturing base that has made a remarkable contribution to the development of China’s heavy-duty truck industry and economic construction. The Dynamic Capability approach seeks to analyze the sources of wealth creation and capture by companies. The dynamic approach to capability is very relevant in the world of Schumpeterian, where company competition is based on innovation, price competition or performance competition, increasing profits, and creative destruction of existing competencies. In principle, every organization must carry out Knowledge Management consciously or not. The problem will arise when Knowledge Management is managed unplanned, organized and fully integrated with general Analysis Of The Effect Of Dynamic Capabilty, Knowledge Management On Employee Performance Rina Purnama 1 , Setyo Riyanto 2 1,2 Mercu Buana University, Indonesia Abstract This study aims to analyze the effect of Dynamic Capability on Knowledge Management, analyze the effect of Dynamic Capability on Employee Performance, and to analyze the effect of Knowledge Management on Employee Performance in SINOTRUK companies. The data analysis technique used is the Structural Equational Modeling (SEM) method, the method of collecting data using a questionnaire to employee SINOTRUK. Sampling technique using purposive sampling method with a sample size of 120 respondents. Based on the results of the study it can be concluded that Dynamic Capability has on positive effect on Knowledge Management, Dynamic Capability has a positive effect on Employee Performance, and Knowledge Management also has a positive effect on Employee Performance. Keywords Dynamic Capabilty, Knowledge Management, Employee Performance