PurposeMuch of the literature on knowledge management (KM) has focused on KM practices in large organisations where KM seems to encompass every KM process from capture of knowledge to its eventual reuse. Small and medium‐sized enterprises (SMEs) practise KM processes to a lesser degree or differently owing to their special characteristics and limitations. The purpose of this study is to understand how the special characteristics of SMEs influence their KM processes.Design/methodology/approachAn in‐depth exploratory research study using a multi‐case design was conducted in four SMEs in Thailand. Four enterprise resource planning (ERP) service providers – two locally owned and two subsidiaries of multinational companies – participated in this qualitative study.FindingsThe analysis demonstrates that, in general, ownership and management structure as well as culture and behaviour characteristics of SMEs seem to have a more positive effect than other SME characteristics on KM processes. System, process and procedure, and customer and market characteristics have a more moderate effect. Human capital management seems to hinder somewhat rather than facilitate KM processes.Research limitations/implicationsThe study covers four organisations; all are ERP service providers. Hence, the results may not directly apply to other types of business such as manufacturing or trading.Originality/valueThe findings may be used as prescriptions for improving KM practices in SMEs. Further, this study may also serve as a basis for future quantitative research studies constructed to generalise these findings.

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The benefits of knowledge management are recognized mainly for the large organization. Small and medium-sized enterprises (SMEs) can also achieve the real benefits of KM. This paper investigates the relationship between the KM process and the organizational performance of SMEs. The objective of this paper is to assess the KM process and its relationship to different components of organizational performance in small and medium enterprise application service providers in Thailand. A survey approach was used with a sample of 81 respondents. The results show that knowledge organization, and retention and knowledge utilization improve individual performance, product performance, and overall organizational performance. Only knowledge organization and retention increases process performance. Knowledge dissemination influences customer satisfaction and reputation and cost reduction. These results demonstrate the benefits of the KM practices on the organizational performance in SMEs.

The benefits of knowledge management are recognized mainly for the large organization. Small and medium-sized enterprises (SMEs) can also achieve the real benefits of KM. This paper investigates the relationship between the KM process and the organizational performance of SMEs. The objective of this paper is to assess the KM process and its relationship to different components of organizational performance in small and medium enterprise application service providers in Thailand. A survey approach was used with a sample of 81 respondents. The results show that knowledge organization, and retention and knowledge utilization improve individual performance, product performance, and overall organizational performance. Only knowledge organization and retention increases process performance. Knowledge dissemination influences customer satisfaction and reputation and cost reduction. These results demonstrate the benefits of the KM practices on the organizational performance in SMEs.