Abstract
This research is based on an issue that knowledge is a crucial asset to create an innovation. Innovation is an important factor for a organization to survive in economical competition. Therefore, this research aims to analyze the correlation between individual tacit knowledge and the innovation as well as organization improvement. Individual innovation capability is an important part of business growth for all kind of organizations. There are several ways to develop the human resources and individual innovation capability, such as action like knowledge internalization. Conversion process can go well if supported by learning by doing activity, where the worker is pushed through a learning process complimented with hands-on experience. A method that can be applied is Learning Cycle method, which pushes the worker to learn continuously through comprehension and trial. Our research results show that knowledge internalization affects the human resources development and individual innovation capability. It can be concluded that the leaning cycle method can be applied to develop the human resources by individual innovation capability in organization.
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