This study aims to evaluate the effects of individual creativity, group creativity, internal organizational characteristics, and external factors of knowledge creation toward organizational creativity of small firms in Indonesia creative industry. In addition, it evaluates the relationship between the organizational creativity and the performance. The study was carried out using a cross-sectional survey with 34 samples (convenience sampling). The correlation between key variables was analyzed using path analysis. Results indicate that organizational creativity is significantly influenced by group design creativity, while individual creativity, organizational characteristics, and external factors of knowledge creation have no significant effect on organizational creativity. The results of the study show that if the small creative industry wants to improve its performance, one of the creativity variables that needs to be optimized is the creativity of the design group.

Previous research was built the effectiveness of knowledge transfer model from University to Small Industries. The model was validated by enterviews with expert from Trunojoyo University and the owner of Small Industry in Bangkalan. This research is validating the previous ones quantitatively by using questioner. Validated was done in Trunojoyo Universityand Small Industry in Bangkalan. This research used 22 processes transfered. Based on unit analisys there were two kind of respondents : (1) 22 lecturers as resource of transfer knowledge, (2) 4 small industries as receiver of transfer knowledge. Data was calculated using SEM basedPLS. From the calculated the most factors that affect the effectiveness of knowledge transfer from University to Small Industries are direction of knowledge transfer, availability of receiver, form of knowledge, information system and personal relationship. There are relationship between endogenous variable as previous model. Only one relationship that not significant was relationship between environment characteristic and receiver characteristic.

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