Adoption of Knowledge Management Systems in SMEs; Realities and Challenges from Ethiopia

Most Small-scale Medium Enterprises (SME's) are becoming relentless in managing and developing knowledge management systems. This is a view however that is based on anecdote rather than reliable empirical evidence. Using data from 300 SME's in Ethiopia, this paper helps redress this deficit. Specifically the paper explores the extent to which SMEs in Ethiopia engage in knowledge management programmes and deciphers some of the factors which may explain the use and non - use of knowledge management practices. The analysis reveals that although a significant number of SME's are knowledge conscious, many more seemingly adopt an ad hoc or haphazard approach. For example less than tenth have credible knowledge management systems. Consequently it seems that there is considerable distance to be travelled to arrive at a universal appreciation of the need to incorporate knowledge portals in SME operations. The analysis also reveals that larger SMEs are more likely to adopt knowledge management systems where the employed labourforce is high and where government assistance is readily available.