Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)


Organizational Forgetting in Enhancing Innovation Performance through Knowledge Management: Study of Manufacture Companies in Indonesia

Author(s): Gromyko Bongso, Hamidah, Wibowo

This study aims to look for direct and indirect effects of organizational forgetting in an effort to improve innovation performance through knowledge management in manufacturing companies in Indonesia.This research was conducted with a quantitative approach by using surveys in research. The number of respondents in this study were 377 employees at manufacturing companies in Indonesia. This study uses a Likert scale to measure the perspectives of manufacturing company employees in an effort to create innovation performance. Structural Equation Modeling is used in this study by considering the goodness of fit test, validity and reliability testing and hypothesis testing.

This study shows the importance of organizational forgetting in improving innovation performance in manufacturing companies in Indonesia. The results of this study indicate a direct and indirect effect of organizational forgetting on innovation performance through knowledge management significantly. Organizational forgetting has a greater influence than knowledge management directly on innovation performance. Manufacture companies in Indonesia need to re-evaluate the strategic decision making and reward system to improve innovation performance. The model created in this study is not replicated from previous journals. Where one of the origins that is done is to test the indirect effect of organizational forgetting on innovation performance with knowledge management. The model in this study is able to measure quite large innovation performance with a value of 74.1%.

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