Abstract
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.
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