Role of Knowledge Management in Small and Medium Enterprise Performance

Abstract

Aim-The aim of this study is to bring a unified framework that integrates Knowledge Management Process (KMP), Innovation Capability(IC), Internal Social Capital(ISC), and Organizational Performance(OP) and empirically explore the framework in the context of SMEs. These small and medium enterprises are highly relevant because of their economic and social importance globally, as they constitute nearly 90% of all firms in OECD countries, 70% of jobs, and 50-60 % of value creation. Design/ methodology/ approach-The study addressed the CEO and managers of Small and medium enterprises with the help of a designed questionnaire. The study being exploratory in nature, and employs Partial Least Square-Structural equation modeling (PLS-SEM) using Smart PLS. Practical Implications-SMEs, compared to large firms' esp. in developing economies, require different strategies to sustain and perform in the long term. Therefore, it is imperative that these enterprises begin processing knowledge management for the sake of overall organizational performance. Originality/ Value-The existing research has explored the phenomenon in the context of large enterprises, and this study explored the comprehensive framework in SMEs. The study extends the previous literature by understanding the role of Internal Social Capital in enhancing organizational performance through the knowledge Management Process.