The Role of Knowledge Transfer and Organizational Learning to Build Innovation Capability: Evidence from Indonesian Automotive Industry

Abstract

Nowadays, innovations are much talked about, discussed, written and discussed in small to large classrooms, meeting rooms for managers and leaders. Innovation is associated with the need to survive amidst the industrial era 4.0. Innovation cannot be separated from personal knowledge and communal knowledge. Whereas knowledge consists of tacit and explicit knowledge both of which require good and continuous management. This study aims to measure the effect of tacit and explicit knowledge on innovation capability mediated by organizational learning. Data collection was carried out by simple random sampling via electronics in a population of automotive industry technicians in Indonesia. The results of the questionnaire returned and valid were 1137 samples. Data processing using SEM method with SmartPLS 3.0 software. The results of this study is only tacit knowledge has a positive and significant effect on innovation capability, both directly and through mediating organizational learning. But explicit knowledge will only effect the innovation capability through organizational learning. This research novelty is proposing a model of building innovation capability in the automotive industry through tacit & explicit knowledge transfer with organizational learning as mediation. This research can open the way to increase readiness index in the automotive industry to deal with industrial revolution 4.0.