International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

 

THE DEVELOPMENT OF INNOVATION CAPABILITY OF SMALL MEDIUM ENTERPRISES THROUGH KNOWLEDGE SHARING PROCESS: AN EMPIRICAL STUDY OF INDONESIAN CREATIVE INDUSTRY
Rahab, Sulistyandari, Sudjono

Abstract
The study sets out to examine the influence of individual factors (enjoyment in helping others and knowledge self-efficacy), organizational factors (top management support and organizational rewards) on knowledge sharing processes and whether more leads to superior firm innovation capability. Based on a survey of 305 employees from 92 SMEs at creative industry in BARLINGMASCAKEB area.This study applies partial least squares (PLS) to investigate the research model.The results show that one individual factors (enjoyment in helping others) and one of the organizational factors (top management support) significantly influence knowledge sharing processes.The results also indicate that employee willingness to both donate and collect knowledge enable the firm to improve innovation capability. Future research can examine how personal traits (such as age, level of education, and working experiences) and organizational characteristics (such as firm size and industry type) may moderate the relationships between knowledge enablers and processes. Practical implications, From a practical perspective, the relationships among knowledge-sharing enablers, processes, and firm innovation capability may provide a clue regarding how firms can promote knowledge-sharing culture to sustain their innovation performance. The findings of this study provide a theoretical basis, and simultaneously can be used to analyze relationships among knowledge-sharing factors, including enablers, processes, and firm innovation capability. From a managerial perspective, this study identified several factors essential to successful knowledge sharing, and discussed the implications of these factors for developing organizational strategies that encourage and foster knowledge sharing.

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