Knowledge management (KM) for small and medium sized enterprises (SMEs) in developing countries - How feasible is it?

Abstract

There have been on-going disagreements concerning very basic concepts in the Knowledge Management field, but most academic researchers and practitioners have agreed that Knowledge Management (KM) is a strategic resource for an organization to enhance its competitive advantage (Drucker, 1993; Hult et al., 2006). Reviewing the related literature, it seems KM not only increases competitiveness, but also is the absolute advantage of big and resource-rich firms. Although in every country, the current role of small and medium size enterprises (SMEs) is significant in the national economy, there are still very few studies which examine KM issues related to small business, as if it were too luxurious for those operating in that arena. This paper presents another approach to Knowledge Management for SMEs in developing countries. While the KM system for large firms requires expensive information technology platform, KM for SMEs, especially SMEs in developing countries uses a totally different approach, as they are operating in a different institutional environment and their resources are limited. In the framework of this paper, this approach is examined by a first-hand perceptual overview of how SMEs operate in Vietnam, a typical developing country in Southeast Asia, characterized by a semi-open market economy, a Confucian culture and a majority of small and medium size enterprises. This overview is the result of a mini-empirical survey conducted in the SME sector. The paper also discusses the possible factors that can influence the success of implementing KM in SMEs in a developing country. It takes into account the insights drawn not only from previous related studies but from the results of this empirical survey as well. The findings presented in this paper could serve as the framework for further systematic research to investigate related issues about KM implementation in SMEs in the context of a developing country.