Impact of tacit and explicit knowledge on knowledge sharing at Indonesian Small and Medium Enterprise

Tacit knowledge is an asset that kept within individual while explicit knowledge that can be documented directly an organization. Tacit and explicit knowledge is an important factor in the development of knowledge sharing within an organization. The object of observation in this study is Small and Medium Enterprises (SMEs), in which knowledge sharing is important to help cooperate with other SMEs in a particular area because generally SMEs in Indonesia growing and developing together in the cluster. The main objective of this research is to analyze the impact tacit knowledge and explicit knowledge on knowledge sharing. Tacit knowledge, explicit knowledge and knowledge sharing are the constructs or latent variables that will be analyzed. Respondents in this study were all individuals who are in SMEs include the owners. The results of this study indicate that each indicator in each construct the model has good validity value, reliability and high level of significance. This shows that the tacit knowledge of each individual in SMEs and explicit knowledge stored by SMEs need to be considered to achieve optimal knowledge sharing process.