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Knowledge Management and Open Innovation for Improving Social Performance of Small and Medium Industry: A Pilot Study

In: Intelligent Engineering and Management for Industry 4.0

Author

Listed:
  • Amelia Kurniawati

    (Bandung Institute of Technology
    Telkom University)

  • T. M. A. Ari Samadhi

    (Bandung Institute of Technology)

  • Iwan Inrawan Wiratmadja

    (Bandung Institute of Technology)

  • Indryati Sunaryo

    (Bandung Institute of Technology)

  • Rocky Reynaldo

    (Target Sourcing Services)

Abstract

Social performance is a measurement of organizational outcome in social, environmental, economic, and government domain by considering multiple stakeholders. Increasing the social performance of Small and Medium Industry (SMI) can be done through innovation. Innovation concept that is suitable to be implemented in SMI is open innovation. Open innovation is characterized by the existence of knowledge flow among SMIs and between SMI and stakeholders. Knowledge flow in an organization is managed through knowledge management. The relationship between knowledge management and open innovation has been discussed in previous literature. However, there is no previous research that identifies the role of knowledge management and open innovation which supports the enhancement of SMI’s social performance. In this study, a conceptual model which represents the relationship between knowledge management and social performance through open innovation in SMI context is developed and tested. The knowledge management concept is represented by knowledge identification, knowledge acquisition, knowledge retention, knowledge sharing, and knowledge application. The open innovation concept consists of two dimensions which are inbound and outbound. The social performance concept is represented by the focus on community and employee. The respondents of this study are 27 small and medium industries which produce batik in Indonesia. The model is tested using the partial least square. The result shows a significant relationship between knowledge acquisition and inbound open innovation, knowledge sharing and outbound open innovation, and inbound open innovation and social performance.

Suggested Citation

  • Amelia Kurniawati & T. M. A. Ari Samadhi & Iwan Inrawan Wiratmadja & Indryati Sunaryo & Rocky Reynaldo, 2022. "Knowledge Management and Open Innovation for Improving Social Performance of Small and Medium Industry: A Pilot Study," Springer Books, in: Yong-Hong Kuo & Yelin Fu & Peng-Chu Chen & Calvin Ka-lun Or & George G. Huang & Junwei Wang (ed.), Intelligent Engineering and Management for Industry 4.0, pages 127-135, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-94683-8_12
    DOI: 10.1007/978-3-030-94683-8_12
    as

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