| This research has aims to analyze the influence of combination knowledge and innovation toward organizational development. Knowledge combination can affect the organizational development, explicit knowledge which continuously developed and adapted to existing conditions will allow employees to do their works, so it will affect the development of the organization itself. Innovation also has an important role in an organization to survive in the competition and to develop the organization. This research is done by doing a case study at Garuda Jaya Small and Medium Enterprise. Garuda Jaya Small and Medium Enterprise is a small and medium enterprise which produce dried flower handcraft with cornhusk as a base material. This research using SmartPLS software to show the influence of knowledge combination and innovation toward organizational development. Based on the results, the knowledge combination and the innovation affect the development of Garuda Jaya Small and Medium Enterprise. The results have conformity with the actual situation and also have conformity with external validation conducted by the Head of Business Services LLP-KUKM. |