Knowledge management processes in SMES and large firms: A comparative evaluation

Abstract

The competitiveness of a firm depends on the quality of knowledge they apply to their business processes. Knowledge management (KM) processes are part of the firm business processes. These processes require turning personal knowledge into corporate knowledge that can be widely shared throughout a firm and appropriately applied. This study examines how SMEs and large firms apply KM processes in their daily business activities and analyse the influence of KM processes on their financial and non-financial performance. KM processes comprise knowledge acquisition, conversion and application while firm performance is measured from financial and non-financial perspectives that consist of profit, growth, innovativeness, customer satisfaction, quality and flexibility. Survey questionnaires were distributed to managers at SMEs and large firms. Results showed that the effects of KM processes on financial and non-financial performance differ between SMEs and large firms. Findings from the survey could help these firms to enhance their financial and non-financial performance via appropriate KM processes.