Managing innovation through knowledge sharing in an Indonesian coconut Small and Medium Enterprise (SME)

Abstract

Indonesia supplies more than 19 million metric tonnes of world coconut needs, where this number covers 30% of total world production. However, Indonesia coconut processing industry is still dominated by semi-finished products such as copra and coconut crude oil. This indicates that coconut products from Indonesia have not implemented innovative activities, and it is generally believed that knowledge sharing become an element which will drive the innovation process. Therefore, this research seeks to know and understand how knowledge sharing is carried out in an Indonesian coconut SME. This research conducted a single case study approach in an innovative coconut SME, Ein which 3 competent people were interviewed in the company as a data collection method. The research has found that knowledge sharing is developed by two methods, direct and indirect. While the direct method focuses on the interaction of knowledge contributor and receiver, the indirect method uses the help of media as a means of knowledge sharing. The research results indicate that direct method has been a considerably more effective in achieving knowledge sharing, due to tacit knowledge usage. Meanwhile, the indirect method serves as leverage for the company to ensure that knowledge is available and accessible. Moreover, the role of knowledge brokers has given an additional understanding on how knowledge sharing is developed in an SME by broadening the knowledge throughout the company. This study has also explored that absorptive capacity becomes the main factor influencing the knowledge transfer success. Employees' awareness to become self learners, motivation, reward system, and level of education has emerged as reasons that determine the level of knowledge acceptance.