This research was conducted at Islamic banking company in North Borneo, Indonesia. To improve the performance of service innovation, companies need knowledge gained from knowledge sharing and absorptive capacity activities. The study was tested with 148 employees working in Islamic banking companies in North Borneo, Indonesia. Data were collected using survey method with a questionnaire. The survey responses submitted by the respondents in this study indicate that the effect of knowledge sharing and absorptive capacity on the performance of service innovation shows significant results.
JEL classification numbers: D83, L89, M31
Keywords: knowledge sharing, absorptive capacity, and service innovation performance.
ISSN: 1792-7552 (Online)