Among the most dynamic and spirited businesses in the contemporary world, software (SW) industry takes the lead. Being an engineering discipline, it requires intelligence of skilled workers and the practice of complex processes. The rapid change of technologies and user requirements leave the software development companies with a great risk on a ground where many are rivals. This atmosphere is less promising to the Small and Medium Scale Software Companies (SMSCs) compared to the large companies with sound expertise, finances and well set processes. This is where Knowledge Management (KM) comes in handy to provide competitive advantage as well as sustainability for such organizations to thrive with improved productivity, quality, customer satisfaction and people friendly internal culture. This paper presents a conceptual model of KM that helps SMSCs to achieve competitive advantage.

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