Abstract—This research is based on an issue that tacit knowledge is a crucial asset to create an innovation. The development of innovation process is now changing from close innovation to open innovation. Open innovation is one way that can be done to improve the ability to innovate an organization. In open innovation the knowledge used to innovate can be obtained from the external and internal organization, both in large scale organization, medium scale and small scale. Open innovation enables organizations such as SMI to innovate their ability by adopting knowledge from outside the organization, internalizing and then transferring knowledge to other organizations with similar scale and type of business. Knowledge that moves on open innovation consists of explicit knowledge, implicit knowledge and tacit knowledge. Tacit knowledge management is relatively more difficult than explicit knowledge management. This happens because the tacit knowledge is abstract, attached to the individual, and its existence is not fully realized.
Innovation is an important factor for a company to survive in economic competition. Therefore, this research has aims to analyze the correlation between tacit knowledge and individual innovation capability to open innovation. This research is done by doing a case study at SMI. Simulation result using PLS show a strong correlation between tacit knowledge and open innovation towards individual innovation capability. This result is caused by the lack of company’s concern to individual tacit knowledge which leads to the problem of individual tacit knowledge codification that is used for doing open innovation in SMI
Index Terms—Tacit knowledge, intellectual capital, innovation.
The authors are with Departement of Industrial Engineering, Bandung Institute of Technology, Indonesia and Department of Industrial Engineering, Telkom University, Indonesia (email: augustinaar@gmail.com, asamadhi@mail.ti.itb.ac.id, iwan@lspitb.org, rya_ryo@yahoo.com).
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Cite: Augustina Asih Rumanti, T.M.A. Ari Samadhi, Iwan Inrawan Wiratmadja, and Indryati Sunaryo, "Open Innovation towards Individual Innovation Capability: Tacit Knowledge Perspective in Indonesian Small and Medium Industries (SMI)," International Journal of Knowledge Engineering vol. 4, no. 1, pp. 55-59, 2018.
