Dynamic capabilities and the evolution of knowledge management projects in SMEs

Abstract

This paper investigates the development path of four knowledge management (KM) projects in small and medium-sized enterprises (SMEs) that lead to the emergence of dynamic capabilities. First, we empirically show how KM projects create a learning context in which KM routines emerge that function as dynamic capabilities for adaption, absorption, or innovation to enable SMEs to remain competitive in a dynamic environment. In particular, KM projects aiming at adaption and absorption (efficiency, transfer of knowledge and experience) achieve sufficient results for obtaining enough resources and attention for a further development. Once the structure of the KM routine is established, the content migrates towards innovation. Second, we also provide an in-depth description of the evolutionary learning path from establishment to routinisation of KM projects winding up as dynamic capabilities.