Absorptive Capacity of Business Incubator for SME's Rural Community Located in Indonesia's Village

According to the Chairman of the Association of Disadvantaged District, Jayabaya Mulyadi, said as many as 32 thousand villages in Indonesia in the category of left behind. One way to improve the life and economy of the village is to promote small and medium enterprises (SMEs) through business organization that could accelerate the growth. What we want to propose is business incubator that already successfull work in develop country. But can it will work at developing country such as Indonesia? An incubator must nurture businesses, provide shared expertise, and link entrepreneurs with venture capitalists. To support SME become successfull, we need to analyze the absortive capacity of the SME. We use definition of absorptive capacity from Cohen and Levinthal and some other definition from another scholar such Zahra and George. This study combines quantitative and qualitative approaches (Gilbert, 1992), which involves a complex research design, usually with stages of research that may iterate (Danemark, Ekstrom, & Karlsson, 2002), such as this research. By combining the methods, the study experts to reach a more comprehensive, nuanced understanding of the implementation of absorptive capacity in village based business incubator, the experience and the ways the organization adopt and use and manage innovation to meet their strategic need.