Indigenous knowledge is associated with the knowledge of indigenous communities that are shared from generation to generation. The aim of the study is to measure the influence of innovation to indigenous knowledge sharing, organisational memory, and indigenous erosion on indigenous batik enterprise. This study used a quantitative approach and the methods used to collect data were a self-administered questionnaire and virtual focus group discussion with the representative of indigenous batik enterprise. The results showed that indigenous knowledge sharing has an effect on organisational memory of indigenous batik enterprise. Secondly, innovation has an effect on organisational memory on indigenous batik enterprise. Thirdly, indigenous knowledge erosion has an effect on organisational memory. Fourthly, indigenous knowledge erosion has a significant effect on indigenous knowledge sharing. Finally, innovation has a significant effect on indigenous knowledge erosion. Copyright © 2023 Inderscience Enterprises Ltd.