Knowledge Management: A Key Driver for Entrepreneurship-an Empirical Study with Special Reference to Software Firms in Pune

Abstract

Background/Objectives: Knowledge-Based Economies generate high economic value through knowledge management and innovation along with a strong focus on Research & Development and showcase a vivid entrepreneurial culture. Knowledge management can be defined as the achievement of the organization's goals by making the knowledge factor productive. This is done primarily by facilitating and motivating people to tap into and develop their capacities and core competencies and to stimulate their attitude towards entrepreneurship. Methods/Statistical Analysis: This research highlight on the knowledge management activities and the role it plays in promoting and driving entrepreneurship in an organization. A primary survey was conducted using a structured questionnaire among 400 employees working in various software firms in Pune city. The exploratory factor analysis technique was deployed to identify the factors contributing to the knowledge management activities and regression analysis was performed to explain its role in promoting entrepreneurship in these software firms. Findings: Entrepreneurs are dependent on knowledge management systems as they aim to increase organizational knowledge and expertise in order to ensure their firms' competitive capacity and profitability. The findings show that three important factors emerge which contribute to the knowledge management activities in the software firms. These antecedents are 'Knowledge Gap Determination&Evaluation', 'Knowledge Acquisition&Development' and 'Knowledge Sharing' which are the major drivers in promoting entrepreneurship and the success of the firms. Applications/Improvements: This paper provides important empirical evidence to support the role of how knowledge management within software firms can act as a key driver in promoting entrepreneurship. This study attempts to interweave the disciplines of knowledge management and entrepreneurship.