Knowledge creation as a source for innovation in SMEs: A literature review

Purpose - The purpose of the paper is to review research on KM within smaller firms to identify gaps in our understanding on knowledge creation. According to this aim the following research questions were formulated: 1) Which studies have been conducted that focus on knowledge creation within SMEs? 2) What were the main findings of the studies? 3) Do the studies focus on knowledge creation as a process, an output or an outcome?, and 4) Which methods were used? Design/methodology/approach - We propose an approach of literature review for the period 2001 to 2011 in order to understand knowledge creation in SMEs. 10 papers were included in our analysis. Findings - Knowledge creation represent areas that are poorly understood. Given the prevalence of small and medium-sized enterprises there is a strong need for more research on this important topic, particularly regarding their link to innovation. Originality/value - To the best of the authors' knowledge, no systematic literature review on this topic has been conducted as of yet. Practical implications - The findings indicate the critical meaning of learning, networks, and KM tools as facilitator of knowledge creation in SMEs. They also highlight the close link to innovation. Future research should stronger consider this relationship.