Creation and categorization of knowledge in automotive components SMEs in India

Abstract

Purpose -New knowledge creation has gained currency in the global knowledge economy. It is important not only for big firms, but for small and medium size enterprises (SMEs) also. Indian automotive components sector is one of the fastest growing sectors of Indian economy and is dominated by SMEs. This research work aims to study the knowledge creation and categorization in SMEs in Indian automotive components sector. Design/methodology/approach -This paper uses a survey method to collect primary data to study knowledge creation and categorization in automotive components manufacturers. Findings -Among various kinds of knowledge, knowledge about customers is given most importance. Though new knowledge creation is gaining importance, research and development spending as percentage of turnover are very low. International automotive components manufacturers have a better perception about knowledge creation compared to the prevalent view in Indian firms. In terms of relevance, latest and timeliness, Indian and international automotive components manufacturers pay little credence to the knowledge available through government institutions and industry associations. Industry associations and governments need to have a re-appraisal of their practices and make their working more useful, fast and updated. Practical implications -This work has policy implications for government and industry associations. Corrective measures are suggested for industry associations and government bodies for contributing to knowledge creation and implementing knowledge management in organizations. Originality/value -First of its kind study in SMEs, particularly automotive components sector in India. It studies the current state of knowledge creation and categorization and suggests guidelines for improving knowledge creation in SMEs.

Knowledge governance within clusters: the case of small firms

“…In that sense, governance appears to be as important as geographical proximity when knowledge diffusion and creation are at stake -possibly even more important (Alberti, 2001). In the same vein, studying the creation and categorization of knowledge management in automotive components SMEs in India, Pillania (2008Pillania ( , p. 1460 concluded that "government and industry associations play an important role in creating the eco-system for new knowledge creation among SMEs".…”

“…Studies on small firms highlight that they often adopt individualistic behaviours to access scarce resources, such as labour, capital or services (Maskell & Lorenzen, 2004). Their lack of managerial skill and cognitive resources limits their ability to perceive opportunities for collaboration (Hewitt-Dundas, 2006;Pillania, 2008). Moreover, they are unable to use external sources to generate new knowledge and innovation, even though these external resources are fundamental to them as they represent the greater part of their knowledge renewal (De Jong & Marsili, 2006;Freel & Harrison, 2006;Pillania, 2008).…”

“…Firms have to make knowledge internally accessible and usable in order to apply it themselves or to prevent competitors from using it. Governance may also play a role in this third phase, providing levers to firms through collective and/or individual programs in order to encourage effective knowledge initiatives and utilization in individual firms (Pillania, 2008).…”

“…Their lack of managerial skill and cognitive resources limits their ability to perceive opportunities for collaboration (Hewitt-Dundas, 2006;Pillania, 2008). Moreover, they are unable to use external sources to generate new knowledge and innovation, even though these external resources are fundamental to them as they represent the greater part of their knowledge renewal (De Jong & Marsili, 2006;Freel & Harrison, 2006;Pillania, 2008). The wide diversity of members (private and public players) and of small firms themselves is another well-identified obstacle for knowledge creation and diffusion within industrial clusters (Alberti, 2001).…”

“…Along the same line, Bahlmann and Huysman (2008) recommend to identify the role of cluster governance with respect to knowledge. More generally, research on knowledge management in SMEs remains scarce (McAdam & Reid, 2001;Liao et al, 2003;Davenport, 2005) even though such firms are critically short in new knowledge creation (Pillania, 2008). Our objective is to shed light on this issue, placing the emphasis on small firms as these are faced with specific obstacles that may prevent or hinder knowledge identification, acquisition and utilization (Thorpe et al, 2005;Pillania, 2008).…”