—Innovation in an organization is importance,
because it is the key to compete in this globalization era.
Especially for small and medium enterprises that need to
compete with large companies. There are some views that if the
model management of knowledge (tacit knowledge) is good then
it will affect the innovation of an organization. In addition to
manage the management of knowledge, wealth (intellectual
capital) of an organization that is invisible is also an important
factor for innovation of the organization. This research is done
to find out the influence of the management of knowledge and
intellectual capital of an organization towards innovation of an
SME. This research is conducted to analyze the effect by using
the results of the questionnaire and then processed using SEM
software Partial Least Square (PLS).
The result of data processing based on the result of the PLS
software shows that tacit knowledge does not affect the
innovation, due to the lack of attention from SME Karya Kulit
to develop knowledge of each employee that resulted in
difficulties to give ideas or innovation. Result for Intellectual
Capital which affect the innovation can happen because the
owners of SME have unknowingly implemented or considered
factors of Intellectual Capital at every process in SME.
—Tacit knowledge, intellectual capital,
Augustina Asih Rumanti and Amelia Kurniawati are with the Department
of Industrial Engineering, Telkom University, Indonesia (e-mail:
Hendru is with the Department of Industrial Engineering, Atma Jaya
Catholic University, Indonesia (e-mail: firstname.lastname@example.org).
Ceicalia Tesravita is with the Department of Industrial Engineering,
Parahyangan Catholic Universtity, Indonesia (e-mail:
Cite: Augustina Asih Rumanti, Amelia Kurniawati, Hendru, and Ceicalia Tesavrita, "The Influence of Tacit Knowledge and Intellectual Capital towards Innovation," International Journal of Knowledge Engineering vol. 2, no. 4, pp. 142-147, 2016.