Knowledge management and intellectual capital in networks of small- and medium-sized enterprises

Published date10 July 2017
Date10 July 2017
DOIhttps://doi.org/10.1108/JIC-11-2016-0120
Pages667-692
AuthorRicardo Vinícius Dias Jordão,Jorge Casas Novas
Subject MatterInformation & knowledge management,Knowledge management,HR & organizational behaviour,Organizational structure/dynamics,Accounting & Finance,Accounting/accountancy,Behavioural accounting
Knowledge management and
intellectual capital in
networks of small- and
medium-sized enterprises
Ricardo Vinícius Dias Jordão
Department of Management, Fundacao Cultural Dr Pedro Leopoldo,
Pedro Leopoldo, Brazil, and
Jorge Casas Novas
University of Évora, Évora, Portugal
Abstract
Purpose The purpose of this paper is to propose a theoretical-conceptual model supporting the analysis of
the effects of small- and medium-sized enterprises (SMEs) networks on knowledge management (KM) and
intellectual capital (IC).
Design/methodology/approach The paper reviews literature on KM, IC and networks theories. The role
of SMEs networks on KM and IC was discussed, analysing previous studies that supported the proposition of
the model in question. In such model SMEs networks are seen as knowledge networks which are analysed in
terms of the network formation process, the context, the strategy, the organisational culture and the stimuli
for the sharing of knowledge. KM is observed in terms of knowledge creation, systematisation and sharing.
Finally, IC encompasses human capital, structural capital and relational capital. It is noteworthythat KM and
IC were considered deeply and closely related.
Findings The conclusions obtained help to fill an important gap in the management, accounting, KM and
IC literature, showing that the processes of creating, acquiring, maintaining, systematising and sharing
information and knowledge and IC generation in SMEs networks can be influenced by the network formation
process, by the organisational context, as well as by the strategy, organisational culture and stimuli to
sharing knowledge.
Research limitations/implications The paper provides a theoretical contribution by increasing
understanding of the effect of SMEs networks on KM and IC practices an understanding still at the early
stages in the literature. Moreover, the originality of the model proposed extends the relevance of this research,
as the literature does not contain a sufficiently established and tested approach that simultaneously provides
a clear view of the relations between SMEs, networks, KM and IC, highlighting how SMEs can use networks
as a strategy to achieve a more effective management of the knowledge assets forming IC. So, the paper offers
several avenues for future research.
Practical implications Based on previous empiri cal research, it was perceived that the origin al model
presented in this paper is consistent, collabo rating to improve manag ement practice, provi ding a
competitive benchmar king process. This can a llow analysts, manager s and other decision make rs, by
using SMEs networks to im prove organisational performance, in novation, sustainability, competit iveness
and value.
Originality/value The paper presents an innovative theoretical-conceptual model focussed on the role of
SMEs networks on KM and IC, indicating a strong link between the former and the latter in such enterprises
in terms of performance, innovatio n, sustainability, competitive ness and value, an issue whose
understanding, although quite relevant, is still incipient in the literature.
Keywords Competitiveness, Sustainability, Knowledge management, Intellectual capital,
Small- to medium-sized enterprises, Networks
Paper type Conceptual paper
Journal of Intellectual Capital
Vol. 18 No. 3, 2017
pp. 667-692
© Emerald PublishingLimited
1469-1930
DOI 10.1108/JIC-11-2016-0120
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1469-1930.htm
The authors are pleased to acknowledge the financial support from Fundação para a Ciência e a
Tecnologia and COMPETE (UID/ECO/04007-POCI-01-0145-FEDER-007659). The authors would also
like to thank the reviewers and editor of the Journal of Intellectual Capital for their valuable comments
and suggestions to improve the quality of the paper.
667
KM and IC in
networks of
SMEs
1. Introduction
Matters involving knowledge management (KM) and intellectual capital (IC) have gained space
in the contemporary literature, being considered a subject of great interest in academic
communities and in the business environment ( Jordão, 2015; Ngah et al., 2015; Andreeva and
Garanina, 2016; Rossi et al., 2016; Verbano and Crema, 2016; Cerchione and Esposito, 2017;
González et al., 2017; Mendoza, 2017; Novas et al., 2017). At the same time, inter-organisational
and collaborative networks between organisations have become an important phenomenon
throughout modern society (Pöyhönen and Smedlund, 2004; Durst and Ferenhof, 2014; Jordão,
2015; Khalique et al., 2015), gaining prominence in academic, economic, social and business
spheres (Balestrin et al., 2014), especially when formed between small- and medium-sized
enterprises (SMEs) (Martins and Sole, 2013; Jordão, 2015). Khalique et al. (2015) emphasise the
economic and social importance of SMEs as the main generators of employment and because
they represent more than 90 per cent of the worlds companies.
Curiously and paradoxically, even considering the strategic importance of SMEs for the
economy, society and governments (Durst and Edvardsson, 2012; Khalique et al., 2015;
Marzo and Scarpino, 2016), the challenge to understand the peculiarities of KM and IC in
SMEs organised in networks (henceforth SMEs networks) is still something to be explored
in depth (Verbano and Crema, 2016), and according to Marzo and Scarpino (2016) little is
known about the subject.
Recognising this research gap, this paper aims to propose a theoretical-conceptual model
supporting analysis of the effects of SMEs networks on KM and IC.
Research is justified whenever its results contribute to a substantial segment of society,
as argued by Jordão and Souza (2013) and Jordão et al. (2014). Therefore, besides filling the
above-mentioned gap and considering the recommendations of scholars such as Pöyhönen
and Smedlund (2004), Durst and Edvardsson (2012), Jordão (2015), Ngah et al. (2015) and
Marzo and Scarpino (2016), this study sought to make the following contributions:
theoretical (by increasing understanding of the effect of network organisation on KM and IC
practices in SMEs an understanding still at the early stages in the literature) and
managerial (by improving understanding of information and knowledge-sharing practices
and IC formation in SMEs networks). The originality of the model proposed extends the
relevance of this research as the literature does not contain a sufficiently established and
tested approach that simultaneously provides a clear view of the relations between SMEs,
networks, KM and IC, revealing how SMEs can use networks as a strategy to achieve more
effective management of the knowledge assets forming IC.
This paper is structured in six sections including this Introduction. Section 2 discuss es
the conceptual and characteristic aspects of KM and IC. Section 3 analyses studies dealing
with KM and IC in SMEs networks. Section 3 describes the research methodology. Section4
presents the theoretical-conceptual model proposed, analysingit critically. Section 5 contains
final considerations about the proposed model and its theoretical and practical potential.
2. KM and IC: conceptual and characteristic aspects
Although IC is a contemporary subject of high academic and professional relevance
(e.g. Andreeva and Garanina, 2016; Omerzel and Jurdana, 2016; Verbano and Crema, 2016;
Mendoza, 2017; González et al., 2017), studies involving the subject and its formative elements
are not new. In the 1970s, Martins (1972) already revealed that there were studies on the subject
dating from 1891. Even so, authors such as Bontis (2000) and Novas et al. (2017) explain that
there is not yet an exact dimension of the value of organisational IC.
The international literature usually associates KM with IC (e.g. Kianto et al., 2014;
Novas et al., 2017). Stewart (1999), for example, defines IC as the set of knowledge and
information found in organisations that add value to products and/or services, through the
application of intelligence to the enterprise, providing it with a competitive advantage.
668
JIC
18,3

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