Title: Knowledge acquisition and innovation: potentials for upgrading of very small and small firms in furniture manufacturing in Indonesia

Authors: Marina Van Geenhuizen, Nurul Indarti, Danny P. Soetanto

Addresses: Faculty of Technology, Policy and Management, Delft University of Technology, P.O. Box 5015, 2600 GA Delft, The Netherlands. ' Faculty of Economics, Department of Management, Gadjah Mada University Jl. Humaniora, Bulaksumur, Yogyakarta 55281, Indonesia. ' Lancaster University Management School, University of Lancaster, UK

Abstract: Among small firms in developing countries, innovation is often sorely needed. However, localised interactive learning tends to be poorly developed in these countries meaning that the inflow of new knowledge depends on interaction with global customers. Small firms may however be captured in unfavourable subcontracting relations and a low absorption capacity. This paper takes the furniture cluster of Jepara (Java, Indonesia) as an example, using a detailed fieldwork. The results picture a dominant learning-by-doing and interaction with buyers, and a low level of innovativeness, but also the presence of some highly innovative firms indicating a perspective for improvement.

Keywords: knowledge acquisition; innovation; buyer relations; localised interactive learning; furniture industry; Jepara; Indonesia; small firms; industrial clusters; learning-by-doing.

DOI: 10.1504/IJFIP.2010.037467

International Journal of Foresight and Innovation Policy, 2010 Vol.6 No.4, pp.207 - 224

Published online: 14 Dec 2010 *

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