Knowledge sharing for innovation performance improvement in micro/SMEs: an insight from the creative sector

Abstract

As economies become more reliant on innovative, knowledge-intensive firms, understanding the interaction between knowledge and improving innovation performance is increasingly important. Although most UK businesses are micro, small or medium-sized enterprises (micro/SMEs), knowledge management research has tended to focus on large companies Knowledge sharing can be critical for innovation performance, especially for smaller players with limited resources. Our study presents an insight from micro/SMEs operating in the highly knowledge-intensive and innovative games/entertainment software development sector. Using a mixed method approach, we investigate knowledge sharing and its contribution to firm innovation performance improvements. Our findings suggest that micro/SMEs are at the forefront of the creative sector precisely because of their smaller size. Our study reveals evidence of knowledge donation but limited evidence of knowledge collection in the knowledge sharing process. We develop a model highlighting the importance of industry context, individual knowledge and organizational size in knowledge sharing for innovation performance.