Knowledge management enablers and outcomes in the small‐and‐medium sized enterprises
| Date | 26 June 2009 |
| DOI | https://doi.org/10.1108/02635570910968072 |
| Pages | 840-858 |
| Published date | 26 June 2009 |
| Author | Mahmoud Migdadi |
| Subject Matter | Economics,Information & knowledge management,Management science & operations |
Knowledge management
enablers and outcomes
in the small-and-medium
sized enterprises
Mahmoud Migdadi
Management Information Systems Department, King Faisal University,
Al-Hofuf, Saudi Arabia
Abstract
Purpose – This paper attempts to accomplish the following aims: first, identify the preliminary
knowledge management (KM) critical success factors (CSFs) or enablers that need to be concentrated
by small-and-medium sized enterprises (SMEs) before launching a full-scale KM initiative. Second,
develop a conceptual research model which comprises both CSFs and outcomes. Finally, empirically
assess the relationships between CSFs and performance outcomes in SMEs.
Design/methodology/approach – The approach of this study consists of two phases: first,
development of a conceptual model based on the literature. Second, an empirical evaluation of the
validity of the conceptual model. This phase is carried out by developing a survey instrument
comprising 16 factors. Then, through a postal survey, data are collected from SMEs in Saudi Arabia in
order to investigate the relationships between KM CSFs and outcomes.
Findings – The survey instrument is shown to be both reliable and valid. Pertinent statistical analyses
are then performed. The overall results from the empirical assessment were positive, thus reflecting the
appropriateness of the proposed CSFs and outcomes.
Research limitations/implications – The current findings of this research study may indicate
some limitations. Although this study shows that CSFs may enhance an organization’s capability to
manage knowledge effectively and in return achieve better outcomes, the findings of this study are the
results of a “snapshot” survey that do not take into account the feedback effects. Hence, further
researching such as longitudinal studies into the relationships between CSFs and outcomes in SMEs to
further validate the conceptual model is needed.
Practical implications – The set of CSFs proposed is in itself important because it can act as a list
of items for SMEs to address and deal with when adopting KM. This helps to ensure that essential
issues and factors are covered during implementation of KM. Later, it can provide a basis for them to
systematically evaluate their KM practices. For academics, this study provides insights into the
relationships between KM efforts and outcomes.
Originality/value – This study is probably one of the first to systematically determine the CSFs for
KM implementation and comprehensively explain the criteria for measuring KM efforts in SMEs.
It offers valuable information, which will encourage SMEs to practice KM from the right perspective in
order to reap outcomes from KM initiatives.
Keywords Knowledge management, Small to medium-sizedenterprises, Critical successfactors,
Saudi Arabia
Paper type Research paper
Introduction
The foundation of organizational competitiveness in the contemporary economy has
shifted from tangible resources to knowledge. Businesses that can efficiently capture
The current issue and full text archive of this journal is available at
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IMDS
109,6
840
Received 10 September 2008
Revised 12 November 2008
Accepted 18 November 2008
Industrial Management & Data
Systems
Vol. 109 No. 6, 2009
pp. 840-858
qEmerald Group Publishing Limited
0263-5577
DOI 10.1108/02635570910968072
the knowledge embedded in their organizations and deploy it into their operations,
productions and services will have an edge over their competitors. Many organizations
are increasingly viewed as knowledge-based enterprises in which formal (knowledge
management (KM)) is essential.
The need for a more systematic and deliberate study on the critical success factors
(CSFs) for implementing KM is crucial. Organizations need to be cognizant and aware
of the factors that will influence the success of a KM initiative. Ignorance and oversight
of the necessary important factors will likely hinder an organization’s effort to realize
its full benefit. Because CSFs are the driving force in carrying out KM, they do not just
generate knowledge in the organization by stimulating the creation of knowledge and
experiences with one another, allowing organizational knowledge to grow concurrently
and systematically (Ichijo et al., 1998).
CSFs are the mechanisms for the organization to develop its knowledge and
stimulate the creation of knowledge within the organization as well as the sharing and
protection of it. They are also the necessary building blocks in the improvement of the
effectiveness of activities for KM (Ichijo et al., 1998).
Initially, KM appeared to be adopted only in large, multinational and international
companies and hence, research work on CSFs has been largely centered on them. Most of
these studies have not considered the differences of company size as well as the specific
features of small and medium enterprises (SMEs) that could affect KM. Frey (200 1),
asserted that although major corporations have led the way in introducing and
implementing KM, it is increasingly important for SMEs to manage their collectiv e
intellect. Okunoye and Kartsen (2002) stated that KM has indeed become the underlying
sources for successful organizations regardless of their size and geographical locations.
Therefore, a better understanding of the CSFs for implementing them in SMEs is needed
in order to ensure the success of their efforts.
Thus, through the study of CSFs in SMEs of Saudi Arabia, this research not just
only tries to validate theory with reality, but it also hopes to provide a reference for
academia as well as the business field.
While KM has been acknowledged to improve organizational performance, ther e
are no well-developed performance measures within the organizations surveyed to
assess the value of their knowledge assets (Longbottom and Chourides, 2001). Many
researchers contended that the lack of understanding of KM purposes and the
failure to measure the value and performance of knowledge assets are major
obstacles in managing knowledge (Longbottom and Chourides, 2001). KM
implementation is an investment that needs resources and it requires efforts to
measure its results.
This paper thus fills the gap by comprehensively examining the KM performance
outcomes as identified from the previous literature. It is posited that an understanding
of KM performance outcomes would lead to a better understanding of KM purposes.
This will eventually help to enable organizations to practice KM from a better
perspective in order to reap its benefits.
Significance of study
A broad range of factors that can influence the success of KM implementation has been
mentioned in the literature. However, no systematic work exists on characterizing
a collective set of CSFs for implementing KM in the SMEs sector. An appropriate set of
KM enablers
and outcomes
in the SMEs
841
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