Knowledge management practices and innovation: A deliberate innovation management model for SMEs

Abstract

ABSTRACT We propose and test a deliberate innovation management model for small and medium enterprises (SMEs) reconciling the “cognition-action” logic underlying the knowledge management and innovation literature and the “intention-action” logic underlying Mintzberg and Waters’s deliberate strategy perspective. Consistent with a proposed “cognition-intention-action” logic, the empirical results from a sample of 633 Dutch SMEs support our predictions. SMEs that deliberately scan external information (via external knowledge acquisition practices) and distribute, interpret, and create internal knowledge (via internal knowledge-sharing practices) are more likely to enhance their innovation orientation and in turn, their innovation performance. Our study advances current understanding of innovation management, including the role of both external and internal knowledge management (KM) practices and also the value of considering innovation orientation in the overall innovation process. Our findings also offer some practical implications for SMEs to enhance their innovation ability.