Knowledge Management in Small Businesses: An Insight from Australia

Abstract

From a knowledge management (KM) perspective,
organisational effectiveness depends on an organisation’s
capacity to effectively perform a range of processes that
include identifying, acquiring, sharing, and storing valuable
knowledge. The literature suggests that the growth of interest
in the field of KM is largely centred on large organisations.
Small businesses have not received much attention in the
literature. This is surprising, given that small businesses
(however defined) represent the majority of businesses in most
countries and, as is the case in Australia, make a major
contribution towards business activity, economic development
and employment generation. This study employed a qualitative
exploratory design to investigate two aspects of KM. These are:
(1) the processes of identifying, acquiring, sharing and storing
knowledge; and (2) the adoption of critical success factors
(CSFs) in the KM processes. Data were obtained through semistructured
interviews with eight owners/managers of
knowledge-intensive small businesses in Western Australia.
Findings of the study reveal that knowledge-intensive small
businesses have a moderate level of KM understanding.
Technology was perceived to be the most common facilitator of
KM processes, and organisational culture was viewed as the
most important factor in fostering KM processes. Overall, the
findings of the study provide a preliminary guiding framework
for those small businesses that lack KM awareness.
Implications of the study findings for small business
owner/managers, small business development agencies and
KM practitioners are explained. Furthermore, limitations of
the study and avenues for future research are discussed.