Analysis individual tacit knowledge toward innovation

This research is based on an issue that tacit knowledge is a crucial asset to create an innovation. Innovation is an important factor for a company to survive in economical competition. Therefore, this research has aims to analyze the correlation between individual tacit knowledge and the company´s innovation. This research is done by doing a case study at PT.X. PT X is an automotive company manufacturing in Indonesia. Simulation result using PLS show a strong correlation between tacit knowledge and a company´s innovation, tacit knowledge towards individual innovation capability, and individual innovation capability towards company´s innovation. But tacit knowledge only has an influence to 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 innovation in a company.