Determinants of Innovation Capability in the Islamic Banking

Purpose Knowledge is fundamental that is able to make the company
succeed and survive in different conditions. The focus of this study to test
and analyze the role of tacit knowledge in innovation capability in sharia
banking. Another factor that is capable of dang very important that the
existence of social capital that are determinants of tacit knowledge sharing
that leads to innovation capability in Islamic bangking
Design / methodology / approach This study begins with an overview of the
literature related to the field of tacit knowledge sharing, knowledge quality,
socal capital and innovation capability, then made a hypothesis that was
developed based on the model that has been created. Then validated
through a survey on 210 respondents. Mechanical analysis using statistical
test equipment SEM-PLS
Finding The third variable that tacit knowledge, social capital and
knowledge quality has a significant influence on innovation capability, these
findings differ from previous findings. In this study, knowledge quality
directly influence a positive and significant impact on innovation capability.
The practical implications organization that exists today has a very tight
competition that is necessary to an understanding of innovation capability.
The success obtained from the application of innovation capability is
expected to be applied to other organizations that are just starting out or

even walking. The application of knowledge management in addition to
explicitly also expected to use the tacit knowledge, because tacit
knowledge in research has been able to become a moderator of the
innovation capability of variables.
Originality / value Many studies or literature that has been discussed about
knowledge management in various sectors, but there is little research
linking knowledge management (tacit knowledge) to the innovation
capability in Islamic banking.
Discussion This study focused on the role of tacit knowledge sharing on
innovation capability, which is supported by other factors such as social
capital.
Keywords: innovation capability, quality knowledge, tacit knowledge
sharing, social capital.
Correspondance:
Ririn Tri Ratnasari
Faculty of Economics and Business, Universitas Airlangga Surabaya,
Indonesia