KNOWLEDGE MANAGEMENT AND PERFORMANCE OF SMALL AND MEDIUMSIZED ENTERPRISES: LESSONS FROM TANZANIAN BAKERIES

Abstract

Small and Medium-sized Enterprises around the globe have for years been struggling to realize competitiveness. Literature proposes knowledge management as one of the drivers of their performance. However, most of these SMEs still face challenges in ascertaining the right knowledge management strategies that would influence their performance and competitiveness. The study seeks to find the contribution of knowledge management strategies on SME performance. It intends to draw lessons from the operations and practices of small and mediumsized bakeries in Tanzania. It has adopted a mixed research methods, and a multi-stage sampling technique and ultimately received responses from 161 questionnaires, and 20 in depth interviews from bakery owners/managers throughout Tanzania. By employing a moderator analysis which is preceded by principal component analysis, and the qualitative content analysis (manifest analysis), the study is able to establish that both the owner/manager’s education, and business experience, moderate the relationship between knowledge management strategies and SME performance. This study’s argument lies in the fact that the knowledge management practices need to be enhanced in order to drive SME competitiveness. The study also argues that the initiatives to enhance these practices need the support of all relevant players in SME development, including the policy development practitioners from both public and private sectors. Keywords: Knowledge Management, SME Performance, Bakeries, Tanzania Journal: Eurasian Journal of Business and Management