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Knowledge as a Critical Resource in Innovation among Small Furniture Companies in Indonesia: An Exploration

Gadjah Mada International Journal of Business (GamaIJB) · Vol. 7 No. 3 (2005) · pp. 371–390

DOI
10.22146/gamaijb.5581
ISSN
2338-7238, 1411-1128
Published
2005-09-12
Publisher
Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada
Language
eng

Abstract

The furniture industry makes a significant contribution to the Indonesian economy but is exposed to an intensifying competitive environment and to emerging shortages of raw material. These circumstances have prompted small furniture manufacturers in the district of Jepara to undertake several types of innovation. It appears that of all first ranked innovations, product innovation is the largest category. In the overall pattern of innovations, market innovation and logistics innovation are also important, a situation that can be explained by the typical character and current circumstances of the furniture industry in this area. The innovation process concerned mainly relies on traditional knowledge sources, namely in-house learning-by-doing and experimentation, and buyers (customers). However, the manufacturers show willingness to use other knowledge sources in the near future, particularly more formal and globally oriented ones, such as exhibitions, research institutions, and the Internet. What tends to hamper such progress is that the manufacturers’ capability to access these knowledge sources is limited by financial obstacles and to a smaller extent by complexity and language obstacles. The paper concludes with a few policy recommendations and potential directions of future research. One of the policy recommendations aims at a combination of the traditional way of knowledge generation through in-house learning-by-doing and experimentation with knowledge from modern and formal sources.

Keywords

Collaboration network of the authors

3 authors · 2 co-authorship links · 2 across different organisations

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  • Delft University of Technology
  • Universitas Gadjah Mada
  • University of Agder
  • Different organisations
  • Same organisation
  • Affiliation unknown
  • Thicker line = more joint articles · bigger circle = more articles
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Co-authorOrganisationJoint articles
Stein KrinstiansenUniversity of Agder1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) https://journal.ugm.ac.id/gamaijb/oai, first harvested 28 Okt 2026, last seen 28 Okt 2026.
Original metadata (oai_dc) 
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	<dc:title xml:lang="en-US">Knowledge as a Critical Resource in Innovation among Small Furniture Companies in Indonesia: An Exploration</dc:title>
	<dc:creator>Geenhuizen, Marina van</dc:creator>
	<dc:creator>Indarti, Nurul</dc:creator>
	<dc:subject xml:lang="en-US">clusters; developing economy; furniture industry: Indonesia; innovation; knowledge sources;  SMEs</dc:subject>
	<dc:description xml:lang="en-US">The furniture industry makes a significant contribution to the Indonesian economy but is exposed to an intensifying competitive environment and to emerging shortages of raw material. These circumstances have prompted small furniture manufacturers in the district of Jepara to undertake several types of innovation. It appears that of all first ranked innovations, product innovation is the largest category. In the overall pattern of innovations, market innovation and logistics innovation are also important, a situation that can be explained by the typical character and current circumstances of the furniture industry in this area. The innovation process concerned mainly relies on traditional knowledge sources, namely in-house learning-by-doing and experimentation, and buyers (customers). However, the manufacturers show willingness to use other knowledge sources in the near future, particularly more formal and globally oriented ones, such as exhibitions, research institutions, and the Internet. What tends to hamper such progress is that the manufacturers’ capability to access these knowledge sources is limited by financial obstacles and to a smaller extent by complexity and language obstacles. The paper concludes with a few policy recommendations and potential directions of future research. One of the policy recommendations aims at a combination of the traditional way of knowledge generation through in-house learning-by-doing and experimentation with knowledge from modern and formal sources. </dc:description>
	<dc:publisher xml:lang="en-US">Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada</dc:publisher>
	<dc:date>2005-09-12</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:type xml:lang="en-US">Peer-reviewed Article</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://journal.ugm.ac.id/gamaijb/article/view/5581</dc:identifier>
	<dc:identifier>10.22146/gamaijb.5581</dc:identifier>
	<dc:source xml:lang="en-US">Gadjah Mada International Journal of Business; Vol 7, No 3 (2005): September-December; 371-390</dc:source>
	<dc:source>2338-7238</dc:source>
	<dc:source>1411-1128</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://journal.ugm.ac.id/gamaijb/article/view/5581/4552</dc:relation>
</oai_dc:dc>