This document discusses knowledge management in small and medium enterprises (SMEs). It notes that knowledge is the most important resource for SMEs. It then describes several key aspects of knowledge management in SMEs, including the dominance of socialization, common knowledge across employees, low risk of knowledge loss, leveraging external sources of knowledge, and a people-centered rather than technology-centered approach. The document also covers managing ignorance, developing knowledge management strategies at multiple levels, and the benefits of knowledge management for increased productivity, efficiency and understanding new opportunities.

1. in SMEs
Khalid Alsayari
Qais Mohamed

2. knowledge management at SMEs
Presentation outlines:
 Introduction.
 Managing knowledge for SMEs
1. Dominance of Socialization in
the SECI Cycle
2. Common Knowledge
3. Knowledge Loss
4. Exploitation of External Sources
of Knowledge
5. People Centered Knowledge
Management
6. Managing Ignorance
7. Process of Development
8. What are the benefits of
knowledge management for the
SMEs?
 Conclusion

3. Introduction
• Managing knowledge is a critical
capability for SMEs to master because
it helps them leverage their most
critical resource.
• Organizational knowledge is the most
salient resource at the disposal of SMEs
in terms of availability, access, and
depth.

4.  Successful SMEs are those who can
leverage their knowledge in an
effective and efficient manner, so as to
make up for deficiencies in traditional
resources, like land, labor, and capital.
 Today knowledge can be divided into
two categories: tacit and explicit.
Introduction

5. Dominance of Socialization in the
SECI Cycle
 SECI Cycle – (Nonaka et al. 1995 )
Knowledge creating cycle comprises of
four activities: socialization,
externalization, combination, and
internalization (SECI).
 In SMEs it was found the presence of
SECI model - a variant of the SECI
model.
 Success of an organization depends
on how well, it converts tacit
knowledge into explicit.
 Socialization was the predominant
way through which knowledge
transfer occurred from owner to
employees and between employees.

6. Common Knowledge
 In SMEs, each employee is given a
deep introduction into the way
the SME conducts business.
 Facilitates ease of communication
and sense making. Forms a shared
context for interpretation and
communication.

7. Common Knowledge
 Emphasized by training initiatives
 Results in each employee had very
similar foundation and grounding in
organizational matters.
 In larger organizations, for the most
part, employees have scant “common
knowledge” due to excessive
specialization of duties and distributed
nature of work assignments.

8. Knowledge Loss – Not a Problem
 SMEs never considered it a real
problem or issue.
 The core knowledge is held by the
owner/managers of the organization.
 Deliberate mechanisms in place to
prevent knowledge loss from becoming
a problem.
I. Promotions from within the
Organization.
II. Backups in terms of Knowledge
Work.
III. Presence of Common Knowledge

9. Exploitation of External Sources of Knowledge
o Appetite and ability to exploit foreign
sources of knowledge.
o Utilization of ready-made knowledge of
external sources.
o Well-connected to local communities
o Reason: SMEs cannot afford to invest
resources in the creation of new
knowledge, as they are starved for
resources, especially during the initial
conception and growth stages.

10. People Centered Knowledge Management
 Technology is almost never used as a
central means to manage knowledge.
 Knowledge is created, shared,
transferred, and applied via people
based mechanisms such as face-to-face
meetings, observations,
apprenticeship, etc.
 Knowledge generated is immediately
put into practice, rather than being
stored in some obscure technology
artifact, like an electronic repository,
e.g. Intranet Portal.

11. Managing Ignorance
 SMEs are normally quick to admit
ignorance areas they lack competency
in.
 Not afraid to call experts to help them
gain knowledge in areas of ignorance.
 This is important as SMEs cannot afford
to spare resources on “risky”,
“unknown”, or “futile” projects. They
do extensive homework before
committing, one aspect being checking
if they have the requisite knowledge

12. Critical factors for SMEs
Proposed critical factors for SMEs for
implementing KM
 management leadership and support;
 culture;
 IT;
 strategy and purpose;
 measurement;
 organisational infrastructure;
 processes and activities;
 motivational aids;
 resources;
 training and education; and
 HRM.

13. Process of Development
How to empower, motivate, encourage,
lead and manage SMEs:
Entrepreneurial processes
Identifying, evaluating and exploiting
business new business opportunities
Managerial processes
Developing Dynamic Capabilities to Craft
Competitive Advantage to face changing
business environment

14. Process of Development
 KM strategy needs to implement at three different
levels in SMEs.
Technology
Level

15. What are the benefits of knowledge
management for the SMEs?
 Successful knowledge management
though SMEs lead to cash flow
success.
 It can increase productivity,
effectiveness and efficiency in
operations.
 Having a more complete view of the
organization enhances the ability to
understand new opportunities that
were previously hidden from view

16. What are the benefits of knowledge
management for the SMEs?
 knowledge allows
organizations to do the right
thing.
 eliminating non-value added
activity and getting to the
right solution without trial-
and-error guess work.
 move an organization ahead
of its competition.

17.  Professional Knowledge Management
lead to understanding of the information
can create higher efficiency in
employees throughout the company.
 The employees in the company will have
quicker access to important information
and know where to find the information
when it is required. This will save a lot
of time in the workplace for the
employees and the management.
What are the benefits of knowledge
management for the SMEs?

18. Conclusion
 SMEs, knowledge management
must be applied in a practical,
business-oriented approach.
 Knowledge management is not a
technology initiative, it is a
workforce initiative that employs
technology to improve worker
performance.
 small firms do informal knowledge
management, but often in
structured and deliberate ways.
 Knowledge is the most powerful
and ubiquitous resource of any
enterprise in general and SMEs in
particular. Therefore,
implementing the of KM in SMEs is
useful and necessary