Knowledge Management and Innovation in Technology-Based Small and Medium Sized Enterprises

Abstract

High-tech enterprises operate in a dynamic and complex environment. To be successful, these enterprises need to develop and build dynamic capabilities to respond to and shape changes in their environment. In other words, they require continuous improvement and innovation. For innovation, these enterprises need to focus on continuous learning to create, transfer and integrate knowledge. The paper aims at examining the process of knowledge creation, transfer and integration at small and medium sized enterprises operating in High-tech industries. Two different hypotheses are tested: one focusing on differentiating between three different categories of SMEs, namely, micro, small and medium enterprises and second differentiating between innovators and non-innovators. It is found that there are significant differences among the three categories of firms, namely micro, small and medium, in terms of objectives, managerial and learning processes, capabilities and performance. Similarly, innovators are also different from non-innovators in terms of knowledge management processes.