Abstract
This study was conducted to develop previous findings in the form of building communities with insignificant innovations that can be mediated by knowledge-sharing variables. The sample used in this study were 105 owners of Small and Medium Enterprises (SMEs) in Bantul Regency, Yogyakarta which was collected through research questionnaires. The research method used is the quantitative method. Data were collected and analyzed using PLS. The results of the study indicate that the concept of knowledge sharing can increase the innovation of SMEs. With the view of the theory of Self-Determination Theory (SDT) means the illustrated model for self-determination motivation. SDT describes the externally controlled motivators provided by the organization, described resources which include assets, capital, finance, human resources, and so on.
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