Knowledge Management in Small Businesses

Nowadays, the drive of every company to outlive and outsmart all other companies and competitors has driven both employees and organizations to continuously search for new ideas, innovation, knowledge creation and new strategies in order to adapt, survive and grow in the rapidly changing business environment and create wealth. Companies are increasingly realizing that their knowledge base is the basis of their competitive advantage, and innovation is imperative for them to make progress. Knowledge management is now a well-established discipline in many large organizations. But what is its status and role in small businesses? This paper starts by summarizing the key characteristics of KM. Then it is followed by a review of current understanding of KM in small businesses. Finally, it is suggested that knowledge innovation the process of accessing, absorbing and converting knowledge into commercial products and services is probably the most fruitful area for policy initiatives.