Knowledge management and growth in Finnish SMEs

Abstract

The impact of knowledge management on the financial success of companies has not yet been properly researched. This paper makes a contribution by examining the relationship between sustainable sales growth and knowledge management activities in 108 Finnish small and medium sized enterprises (SMEs). Design Data were generated from a questionnaire survey of 108 SMEs from different fields and thematic interviews with 10 companies. Findings Higher levels of KM-Maturity were found to correlate positively with long-term sustainable growth. Although Finnish SMEs display a surprisingly high awareness about KM, only a minor proportion of the sample firms has been able to benefit in terms of growth from their KMrelated activities. The results have implications for policy formulation in the field of SMEs, since half the Finnish SMEs in the sample do not grow. We found that the fast-growing companies with high KM-Maturity are applying KM-related activities in a comprehensive and balanced way, thereby raising question marks around the effectiveness of eclectic "KM implementations". Research limitations and implications This research was carried out only in one country and the results cannot be generalised. Furthermore, this study doesn't provide any information concerning the causal relationship of knowledge management and SME performance. Therefore, further studies in the field are needed. Practical implications The results from this study also suggest that SMEs might be able to shift into higher growth by applying a comprehensive KM-approach incorporating all intangible assets equally. Value This study provides new information concerning the relationship between knowledge management and small business performance.

The Spread of Knowledge Management in SMEs: A Scenario in Evolution

“…In detail: three out of 17 papers [101][102][103] indicate that KM supports all five performances; four contributions show that KM positively affects four performance types [17,[104][105][106], two papers point out that KM positively influences three performances [107,108], whereas one paper highlights two performances [109], and seven papers show only one performance [110][111][112][113][114][115][116]. This seems to highlight that KM contributes to an overall growth of SMEs by simultaneously enhancing more performance.…”

How to deal with knowledge in small companies? Defining emergent KM approach

“…They are also less successful in sharing knowledge by means of formal systematic approaches. To sum up, in SMEs, KM can be practised even if it may be not recognized as such (Salojärvi et al, 2005).…”

Towards a Knowledge Sharing Model for Small Businesses

“…2 80,81,82,83,84,85,86,87,88 . The task of organising and storing existing knowledge is enormous with minimal tangible benefits until the knowledge is reused.…”