What is The Influence of Knowledge Creation to Innovation?
RUSLI, STEVAN (Adv.: Haibo Zhao, Dr., Ir.), Haibo Zhao, Dr., Ir.
Nowadays, in order to survive the competition, companies must have innovation on their side. Having an innovation will help the company to be more recognized by customers, and eventually creates more value for the company. Having a low cost strategy sometimes just not enough for companies to be the market leader. Apple the giant US company which is on the top list of 50 most innovative companies in 2011 according to www.fastcompany.com has displayed how the power of innovation can make a company a market leader. According to the Apple annual report, the R&D expenditure for three consecutive years (2008, 2009, 2010) are U$1,728 million; U$1,333 million and U$1,109 million respectively. Furthermore, there is also a significant increase on net income for the same three consecutive years. In 2008, Apple has a net income of U$6,119 million; in 2009 it increases up to U$8,235 million; and eventually in 2010 it reaches U$14,013 million; displaying more than 50 percent of increase from 2009 to 2010 (http://investor.apple.com/financials.cfm) . It shows how Apple tries to improve its innovation power every year which leads into a greater income generated. Furthermore, one of the top three in the list (Facebook) has proven that innovation power is what a company needs in this modern competition. The fact speaks for itself, “Facebook grew its U.S. user base by 145%, beating out Google as the top Internet destination, topped 600 million active users worldwide, and scored a $450 million investment from Goldman Sachs that values the company at $50 billion” (www.fastcompany.com). Both Apple and Facebook are only two examples out of 48 other companies on the list that have a great innovation power and proven to be so successful.
In this study, knowledge creation will act as the independent variable and innovation is the dependent variable. In order to investigate this relationship, an extensive literature review will be used in this bachelor thesis. The author hopes that this study will provide a summary on how far this relationship has been researched. Therefore, a research question is formulated as follow:
“What is the role of knowledge creation to Innovation?”
In the next chapter, the concepts of each variable will be explained extensively. Then an explanation of how the study is conducted and research method used will be provided. Lastly, the author will provide the conclusion of the study and some limitations.
Kata Kunci : prevalent innovation power, however, knowledge in organization holds an important role, especially related to the innovation
