Abstract
Purpose Knowledge is fundamental that is able to make the company succeed and survive in different conditions. The focus of this study to test and analyze the role of tacit knowledge in innovation capability in sharia banking. Another factor that is capable of dang very important that the existence of social capital that are determinants of tacit knowledge sharing that leads to innovation capability in Islamic bangking
Design / methodology / approach This study begins with an overview of the literature related to the field of tacit knowledge sharing, knowledge quality, socal capital and innovation capability, then made a hypothesis that was developed based on the model that has been created. Then validated through a survey on 210 respondents. Mechanical analysis using statistical test equipment SEM-PLS
Finding The third variable that tacit knowledge, social capital and knowledge quality has a significant influence on innovation capability, these findings differ from previous findings. In this study, knowledge quality directly influence a positive and significant impact on innovation capability.
The practical implications organization that exists today has a very tight competition that is necessary to an understanding of innovation capability. The success obtained from the application of innovation capability is expected to be applied to other organizations that are just starting out or even walking. The application of knowledge management in addition to explicitly also expected to use the tacit knowledge, because tacit knowledge in research has been able to become a moderator of the innovation capability of variables.
Originality / value Many studies or literature that has been discussed about knowledge management in various sectors, but there is little research linking knowledge management (tacit knowledge) to the innovation capability in Islamic banking.
Discussion This study focused on the role of tacit knowledge sharing on innovation capability, which is supported by other factors such as social capital.

Key words: innovation capability, quality knowledge, tacit knowledge sharing, social capital.