Managing Innovation through Knowledge Sharing In an Indonesian Coconut SME
ISBN : 978-1-4673-7404-0
ICAIA 2015
Managing Innovation through Knowledge Sharing
In an Indonesian Coconut SME
Muchammad Kodiyat P1, Machfud 2, Nastiti S lndrasti 2
Center for Industrial Research and Standardisation, Manado Indonesia
2
Faculty of Agroindustrial Technology, Graduate School, Bogor Agriculture University
Email : muchammad.prianggodo@gmail.com, machfud2 l@gmail.com, nastiti.indrasti@gmail.com
1
Abstract - This research seeks to know and
understand bow knowledge sharing is devtloped to
enhance innovation processes in an Indonesian
coconut SME. This research conducted a case
study approach in an innovative coconut SME, in
which 3 competent people were interviewed in the
company as a data collection method. The research
bas 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
bas 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 ｫｾｯｷｬ･､ｧ＠
is
available and accessible. Moreover, the role of
knowledge brokers bas given · an ｾ､
ｩｴｯｮ
｡ ｬ＠
understanding on bow knowledge sharing is
developed in an SME by broadening the
knowledge throughout the company. This study
bas also explored that absorptive capacity becomes
the main factor influencing the knowledge transfer
success. Employees' awareness to become self
learners, motivation, r eward system, and level of
education has emerged as reasons that determine
the level of knowledge acceptl\nce.
I. INTRODUCTION
I
ndonesia supplies more than 19 million metric
tonnes of world coconut needs, or 30% of total
world production. However, despite being a
numbe1 one producer of coconut all over the world,
Indonesia has not yet felt the benefits from the
advantage.
Manuscript received Ju ly 29, 2015. Tl11s work was supported in
pnrt by the Ministry of Industry of Indonesia
Muchammad K Prianggodo 1s \\llh the Sahu Riset dan
Standard1sas1 lndusm. Manado Indonesia (phone. +62 43 l 852
39S; fax: +62 431 852 396;
(e-mail: mychammad mjanggod0i'iilgmq1I com).
Macbfud 1s with the Agro mdustnal Technology Study
Progr.im, Graduate School, Bogor Agricultural University (I PD),
Bogor, ｬｮ､ｯｾｳｩ｡＠
(e-mail machfud2 l@'gmail com).
Nastiti S lndrasti is w11h the Agro Industrial Technology Study
Program, Graduate School, Dogor Agricultural University (IPO),
Bogor, Indonesia (e-mail MStiti indraslll@gmail com)
•
82
Most Indonesian coconut products are sold in forms
of low end products, such as copra and crude coconut
oil , which has less value compared to high end
products. The condition of low added value products
from Indonesia arises from the lack of innovative
practices of coconut producers, due to the fact that the
majority or producers are small and medium
Enterprises (SMEs).
Consequently, to raise
Indonesian coconut products to a higher value,
innovation is needed. There are many ways for SMEs
to perform innovation. One of which is by having
knowledge sharing in its organisation. The reason
why knowledge sharing can be important for SM Es is
because it becomes the foundation by which
individuals can continuously contribute to the
development of knowledge creation and management.
However, only a small number of researches have
focussed on knowledge sharing strategies in SMEs.
where most literature has discussed knowledge
sharing as part of knowledge management in large
firms. Therefore, this study aims to investigate how
the knowledge sharing is practiced in SMEs,
ｾｳｰ･｣ｩ｡ｬｹ＠
in an Indonesian coconut SME, as an
important fac1or that produce.· 357·365.
Hoffman. K. Pare;10. M, llessnnt. J & Perren, L 1998,
'Small firms, R&D, technology and innovation in the UK
a li1erature review. Technova11on, vol. I8, no. I. pp 3955
Kumara, N & Kapoorb. S 20 10. 'Value chain analysis of
coconut in Onssa·
Lay, A & Pasang. P 1998, 'Stra1eg1 dan implementas1
Pengembangan proJuk kelapa masa depan', l3ala1
Penehtran Tanaman Kelapa dan Palma Lam Manado
Lopez-Nicolas, C & Merono--Cerctan, AL 20 11 , 'Strategic
knowledge management, innovation and performance',
lnternationa: ｊｏｵｲｮｾｉ＠
of informauon management, vol 31 ,
110. 6, pp. 502-509.
Maqsood, T 2006, The role ｯｦｫｮｷｬｾ､ｧ･＠
management m
supponing innovation and learning in construction', RMIT
University.
McAdam, R & Reid. R 2001 , 'SME and large organisation
perceptions of knowledge management comparisons and
ICAIA 2015
ISBN : 978-1-4673-7404-
•
( 16)
(17)
[ 18)
[ 191
(20)
[21)
(22)
contrasts'. Journal of KnO\\ledge management, \OI 5, no
3.pp :!31-2.tl
Nonaka. I 1991. 'The knowledge-creaung compan>'·
Har\ard l>usmess review. 'ol 69, no 6, pp 96-104
Ohiorenora. JO & Ooodan, JA 2014, 'Kno\\1edge Sharing
In Small And Medium Sc:ile Enterprises In Benin Cuy,
Edo State'. European Sc1entificJournal, vol. 10, no. 1
Polnny1. M 1967, The tacit dimension 1967. Garden Cny,
Ne\1 York, \'OI 217.
Riege. A 2005. 'Three-dozen ｫｮｯ｜ｾ･､ｧＭｳｨ｡ｲｩ＠
l:xlmers
nmnagers must consider', Journal of Kno11ledge
management, 101. 9, no. 3, pp. 18-35.
Seidler-de Alwis. R & Hanmann, E 2008. The use oftacn
knowledge within innovative companies: kno11-1edge
management m 111novat1ve enterprises'. Journ:11 of
"nowh:dge man.1gcment. vol. 12, no. I, pp. 133-147.
Smnh. EA 2001. 'The role of taci t and explicit knowledge
in the workplace', Journal of Knowledge managemcm. vol
5, no 4, pp. 311-321.
Szulnnsk1. G 1996, 'Exploring internal stickiness
Impediments 10 the transfer of best practice 11ith111 the
firm'. Strategic management journal, vol 17. no. S2. pp.
2743.
[23]
(24)
(25)
(261
[27]
Takeuchi. H 2006, 'The New Dynamism of the
Knowledge-Crentmg Company'. Kno\\ledge Economy, p.
I.
Tamer Ca,·usg:I S. Calantone, RJ & Zhao, Y 2003, iacn
ｾｮｯ｜＠
ledge transfer and firm mno1ation capab1hl) '. JoumJl
of ｢ｵＮｾｭ･ｳ＠
&. mdustnal marketing. voi 18. no l, pp
ICAIA 2015
Managing Innovation through Knowledge Sharing
In an Indonesian Coconut SME
Muchammad Kodiyat P1, Machfud 2, Nastiti S lndrasti 2
Center for Industrial Research and Standardisation, Manado Indonesia
2
Faculty of Agroindustrial Technology, Graduate School, Bogor Agriculture University
Email : muchammad.prianggodo@gmail.com, machfud2 l@gmail.com, nastiti.indrasti@gmail.com
1
Abstract - This research seeks to know and
understand bow knowledge sharing is devtloped to
enhance innovation processes in an Indonesian
coconut SME. This research conducted a case
study approach in an innovative coconut SME, in
which 3 competent people were interviewed in the
company as a data collection method. The research
bas 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
bas 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 ｫｾｯｷｬ･､ｧ＠
is
available and accessible. Moreover, the role of
knowledge brokers bas given · an ｾ､
ｩｴｯｮ
｡ ｬ＠
understanding on bow knowledge sharing is
developed in an SME by broadening the
knowledge throughout the company. This study
bas also explored that absorptive capacity becomes
the main factor influencing the knowledge transfer
success. Employees' awareness to become self
learners, motivation, r eward system, and level of
education has emerged as reasons that determine
the level of knowledge acceptl\nce.
I. INTRODUCTION
I
ndonesia supplies more than 19 million metric
tonnes of world coconut needs, or 30% of total
world production. However, despite being a
numbe1 one producer of coconut all over the world,
Indonesia has not yet felt the benefits from the
advantage.
Manuscript received Ju ly 29, 2015. Tl11s work was supported in
pnrt by the Ministry of Industry of Indonesia
Muchammad K Prianggodo 1s \\llh the Sahu Riset dan
Standard1sas1 lndusm. Manado Indonesia (phone. +62 43 l 852
39S; fax: +62 431 852 396;
(e-mail: mychammad mjanggod0i'iilgmq1I com).
Macbfud 1s with the Agro mdustnal Technology Study
Progr.im, Graduate School, Bogor Agricultural University (I PD),
Bogor, ｬｮ､ｯｾｳｩ｡＠
(e-mail machfud2 l@'gmail com).
Nastiti S lndrasti is w11h the Agro Industrial Technology Study
Program, Graduate School, Dogor Agricultural University (IPO),
Bogor, Indonesia (e-mail MStiti indraslll@gmail com)
•
82
Most Indonesian coconut products are sold in forms
of low end products, such as copra and crude coconut
oil , which has less value compared to high end
products. The condition of low added value products
from Indonesia arises from the lack of innovative
practices of coconut producers, due to the fact that the
majority or producers are small and medium
Enterprises (SMEs).
Consequently, to raise
Indonesian coconut products to a higher value,
innovation is needed. There are many ways for SMEs
to perform innovation. One of which is by having
knowledge sharing in its organisation. The reason
why knowledge sharing can be important for SM Es is
because it becomes the foundation by which
individuals can continuously contribute to the
development of knowledge creation and management.
However, only a small number of researches have
focussed on knowledge sharing strategies in SMEs.
where most literature has discussed knowledge
sharing as part of knowledge management in large
firms. Therefore, this study aims to investigate how
the knowledge sharing is practiced in SMEs,
ｾｳｰ･｣ｩ｡ｬｹ＠
in an Indonesian coconut SME, as an
important fac1or that produce.· 357·365.
Hoffman. K. Pare;10. M, llessnnt. J & Perren, L 1998,
'Small firms, R&D, technology and innovation in the UK
a li1erature review. Technova11on, vol. I8, no. I. pp 3955
Kumara, N & Kapoorb. S 20 10. 'Value chain analysis of
coconut in Onssa·
Lay, A & Pasang. P 1998, 'Stra1eg1 dan implementas1
Pengembangan proJuk kelapa masa depan', l3ala1
Penehtran Tanaman Kelapa dan Palma Lam Manado
Lopez-Nicolas, C & Merono--Cerctan, AL 20 11 , 'Strategic
knowledge management, innovation and performance',
lnternationa: ｊｏｵｲｮｾｉ＠
of informauon management, vol 31 ,
110. 6, pp. 502-509.
Maqsood, T 2006, The role ｯｦｫｮｷｬｾ､ｧ･＠
management m
supponing innovation and learning in construction', RMIT
University.
McAdam, R & Reid. R 2001 , 'SME and large organisation
perceptions of knowledge management comparisons and
ICAIA 2015
ISBN : 978-1-4673-7404-
•
( 16)
(17)
[ 18)
[ 191
(20)
[21)
(22)
contrasts'. Journal of KnO\\ledge management, \OI 5, no
3.pp :!31-2.tl
Nonaka. I 1991. 'The knowledge-creaung compan>'·
Har\ard l>usmess review. 'ol 69, no 6, pp 96-104
Ohiorenora. JO & Ooodan, JA 2014, 'Kno\\1edge Sharing
In Small And Medium Sc:ile Enterprises In Benin Cuy,
Edo State'. European Sc1entificJournal, vol. 10, no. 1
Polnny1. M 1967, The tacit dimension 1967. Garden Cny,
Ne\1 York, \'OI 217.
Riege. A 2005. 'Three-dozen ｫｮｯ｜ｾ･､ｧＭｳｨ｡ｲｩ＠
l:xlmers
nmnagers must consider', Journal of Kno11ledge
management, 101. 9, no. 3, pp. 18-35.
Seidler-de Alwis. R & Hanmann, E 2008. The use oftacn
knowledge within innovative companies: kno11-1edge
management m 111novat1ve enterprises'. Journ:11 of
"nowh:dge man.1gcment. vol. 12, no. I, pp. 133-147.
Smnh. EA 2001. 'The role of taci t and explicit knowledge
in the workplace', Journal of Knowledge managemcm. vol
5, no 4, pp. 311-321.
Szulnnsk1. G 1996, 'Exploring internal stickiness
Impediments 10 the transfer of best practice 11ith111 the
firm'. Strategic management journal, vol 17. no. S2. pp.
2743.
[23]
(24)
(25)
(261
[27]
Takeuchi. H 2006, 'The New Dynamism of the
Knowledge-Crentmg Company'. Kno\\ledge Economy, p.
I.
Tamer Ca,·usg:I S. Calantone, RJ & Zhao, Y 2003, iacn
ｾｮｯ｜＠
ledge transfer and firm mno1ation capab1hl) '. JoumJl
of ｢ｵＮｾｭ･ｳ＠
&. mdustnal marketing. voi 18. no l, pp