Knowledge Management Challenges in
in Small- and Medium-sized Firms
KAVOOS MOHANNAK
School of Management, QUT Business School
2 George Street, Brisbane, QLD 4001, Australia
E-mail: k.mohannak@qut.edu.au
This paper is presented at The ISFAM 2014 World Congress in Tokyo – Management in Crisis Tokyo, Japan September 2-4, 2014.
Research Context

In this study, knowledge management (KM) is all the
activities by which an organization identifies and utilizes
external and internal knowledge.

The research findings suggest that innovations occur
when existing or new knowledge is integrated within
organization which will result in a new product or service
(Cavusgil et al. 2003).

Little attention has made to investigate how they manage
and integrate their specialised knowledge for innovation
which is at their core of their business.
Research Questions

Where are the potential challenges for the integration of
specialised knowledge?

What processes and practices are used by small
medium sized technology-oriented firms to transfer,
create and capture knowledge for the organisation’s
benefit?

How is knowledge integrated, sourced and recombined
from internal and external sources for innovation and
new product development?
Strands in Literature

Kogut & Zander (1992) suggest that the primary challenge of the firm is to
create and transfer knowledge efficiently within the firm (combinative
capabilities)

Knowledge-based view of the firm (see, Boisot, 1998; Grant, 1996a; Teece,
1998).

Recent empirical study by Palacios, Gil & Garrigos (2009) also provides a bridge
from knowledge management activities to technological innovation and
distinctive competencies.

Four categories of organisational resources and capabilities impact knowledge
integration: 1) team-building capability; 2) integration of individual specialized
knowledge that are sources of technical and commercial information; 3)
knowledge integration through communication networks within and outside the
organization; and 4) technology/knowledge systemic integration (Hargadon and
Fanelli 2002; Huang and Newell 2003; Andreu and Sieber 2005).
Conceptual Framework




Path dependency: Path dependency is a process in which the pattern of
behaviour of the firm is based on the earlier experiences and cumulative
knowledge of the firm.
Mechanisms for linking technological and commercial knowledge: The
framework emphasises the dynamic nature of the knowledge flows that
must occur between the commercial and technological functions in the firm,
linking to the strategy, innovation and operational processes,
Knowledge Context: The specific knowledge integration issues faced by
firms depend on the characteristics of specialised knowledge and
technology context of the firm.
Organisational Context: The organisational context (internal and external)
refers to structure, systems, infrastructure, culture, and the particular
business environment and challenges confronting the firm, which change
over time.
Conceptual Framework
Knowledge
Determinants: Path
dependency; knowledge
linkage mechanisms;
Organizational and
Knowledge context
Firm specific
specialized
Knowledge base; KM
Systems
Knowledge
Activities:
Identification, selection,
acquisition &
development,
exploitation, protection
External Knowledge: Search processes and
integration and transfer of different knowledgebases through partnerships and generic knowledge.
Organizational Knowledge Integration
•KI within project team - team building capability
•KI and capturing of individual specialized
knowledge that are sources of technical and
commercial information.
• KI through communication networks/systems
within and outside the organisation; and
•Technology/knowledge systemic integration.
Internal Knowledge: Learning processes,
internal knowledge capabilities and competencies
Innovation
Performance:
Scale of new
product/service;
competitive
advantage;
capability
development
Case Studies:
Multiple case study method employed:

Company A is an innovative firm and does much research and
development in the area of information systems and automation
engineering.

Company B is a nanotechnology company which started about ten
years ago and currently has about 30 employees.

Company C is a commercial biotech laboratory that offers a range of
chemical and microbiological testing across food, agricultural and
environmental sectors utilising the best technology.

Company D provides health-care solutions and products based on
the science of cell biochemistry.
Research Findings

Identifying the knowledge Gap
“...it will generally come from a meeting where we discuss that we have
these things coming up, how are we going to achieve them. That is where
we start trying to identify gaps and holes...”

Knowledge Acquisition and Development
“ ...it could be in a number of different ways, it could well be that we decide
somebody needs training … it could be as I said that we hire an external
resource. It could be a contractor/specialist in that area, it could well be that
we use documentation...”

Knowledge utilisation and sharing
“...we have quite a few social evenings where we encourage the guys to do
things together at lunchtime and we have our little lunch learning meetings,
they are less formal environments, but they still allow the guys to talk about
and share ideas...”

Organisational knowledge integration
“...that is probably the biggest challenge for us is to capture that experience
if you like...”
Practical Implications
(1)
(2)
(3)
(4)
(5)
(6)
Technology-based firms must be strategic in
knowledge management processes for
innovation, especially for knowledge integration
Leadership and management should
encourage various practices for knowledge
management,
Capturing and sharing tacit knowledge,
Team knowledge integration practices,
Knowledge management & integration through
communication networks, and
Technology systems for knowledge
management and integration.
Conclusions


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Knowledge management and integration process is very much
project focused and not embedded within the overall organisational
routines and mainly based on ad hoc and informal processes.
The research highlights that technopreneurial firms must be
intentional in order to manage their specialised knowledge
strategically.
Gaining access to internal knowledge and integrating this
knowledge into new product development process was important;
however equally important was gaining knowledge through external
interaction.
There is a need to improve the general effectiveness of the systems
in supporting the management of knowledge beyond simple use of
databases.
Knowledge integration is not a stand-alone process. It has to be
embedded throughout all business processes and has to become
part of the firm’s culture and routines.
Thank You ….