Tacit knowledge transfer and its implementation on Small and Medium Enterprises

Tacit knowledge is one of the most crucial factors in the SME (Small and Medium Enterprises) business, including in the field of production. The production comes from the work force who possesses certain amount of tacit knowledge. A model of the transfer of tacit knowledge to empower SME will help workforce to extract it easier. This research explains a model of the transfer of tacit knowledge that focuses on the transfer of knowledge at organizational level of SME. The models consist of six constructs: sources characteristics, receiver characteristics, tacit knowledge characteristics, organization context, media characteristics, and the effectiveness of the transfer of tacit knowledge. The validation of this model is conducted in Surya Usaha Mandiri SME that create coconut shell handicrafts in Bantul, Yogyakarta, Indonesia. The data computation is conducted through Structural Equation Modeling method. The result shows that the data influential factor towards the sources characteristics, receiver characteristics, tacit knowledge characteristics, organization context, media characteristics, and the effectiveness of the transfer of tacit knowledge. Conceptual model needs to be improved.