Green Production Implementation Through Perspective of Knowledge Sharing and Open Innovation: Case Study at Indonesian Handmade Batik Industries

Small Medium Industries (SMIs) are the industry model that originates from the regions' ability to explore their potential. SMIs fostered in the district have more advantages because they can share information, knowledge, and facilities communally. The green production application in SMIs demands an innovation process that environmentally friendly. Limitations possessed by the organization are capital, inadequate technology, lack of knowledge and skills in managing the internal organization, understanding of competition and market desires, and the ability to manage networks with an external organization. The concept of open innovation provides an opportunity for many organizations, including SMIs, to enhance their innovative capability through the usage of knowledge from the external organizations that have similar characteristics. Knowledge sharing is a source of open innovation in an organization. Knowledge sharing is considered a social activity to build inclusion of individuals to obtain new knowledge as a basis to strengthen the capability of innovation.