Tacit Knowledge Sharing for Individual Innovation Capability at Indonesian SMI

Abstract

Knowledge sharing is an asset for industrial organizations. These assets play a
key role in global competition. Especially in increasing the innovation capacity
of Small and Medium Industries (IKM). In this case innovation means
introducing new products, making qualitative changes to existing products,
introducing new processes in industrial organizations, creating new markets, and
developing new sources of raw materials or other inputs. Much knowledge is
stored in individuals, which is called tacit knowledge. Sharing tacit knowledge
among individuals associated with industry organizations can increase the
capacity of innovation previously explained. This study analyzes the
relationship between sharing tacit knowledge and organizational innovation
capabilities. Certain SMI employees located in Semarang, Central Java were the
respondents for this study. Opinions as many as 45 members of each IKM have
been analyzed using the hypothesis testing method. Through this research, it is
shown that the level of sharing of tacit knowledge influences IKM's innovation
ability.