Abstract for: A Dynamic View on Knowledge Development: A Case of Industrial Aerospace Supply Chain Development in Indonesia
Indonesia, through a state-owned aircraft industry named PT. Dirgantara Indonesia (PTDI), is trying to develop its national capacity in aerospace industrial technology. The strategy being thought to realize this objective is to build the aerospace supply chain industries through which the Small & Medium Enterprises (SMEs) can take a role in the global aerospace supply chain industries in the near future. As a main focus for this purpose, the Quality Management Systems (QMS) like AS 9100 has to be internalized in the SMEs; because, in reality, the Indonesian SMEs have not yet been experiencing with the quality requirement. Therefore, it is important to simulate the QMS learning process in the SMEs through an outsourcing collaboration between PTDI and SMEs. To simulate the learning process, a system dynamics model of knowledge development is constructed based on the inter-organizational learning dynamic model developed by Otto and Richardson (2004). A modification of the original model is made to accommodate an assistance mechanism for SMEs learning process in order that the QMS knowledge and experience of SMEs is adequate enough prior to the outsourcing partnership with PTDI. This study shows that the assistance is very important for SMEs those have not adequate prior knowledge and experience in QMS to increase their knowledge level.