Knowledge Management as a Strategic Tool to Foster Innovativeness of Smes

39 Pages Posted: 2 Jun 2009  

Haibo Zhou

Erasmus University Rotterdam (EUR)

Haibo Zhou

University of Groningen

Lorraine M. Uhlaner

EDHEC Business School

Date Written: November 2009 5,

Abstract

This study examines the relationship between knowledge management (KM) (in terms of external acquisition and internal sharing) and innovation behavior. The concept of absorptive capacity and assumptions from the dynamic capabilities view underlie the proposed framework and hypotheses. The framework is empirically tested using a random sample of 649 Dutch small to medium sized enterprises (SMEs). Our empricial results indicate that external acquisition practices play a key role in fostering SMEs’ innovativeness while internal sharing practices do not appear to have a significant influence. External acquisition activity enhances a firm’s awareness of available knowledge opportunities. Firms which actively acquire external knowledge (regardless of the type of knowledge) may build a greater competitive dynamic capability to sense and seize business opportunities which in turn may lead to new or improved products or processes. We suggest that owners/entrepreneurs of SMEs and their firms will benefit in the long term if they strategically manage knowledge, especially using external acquisition practices.

Keywords: knowledge management, absorptive capacity, innovation orientation, innovation behavior, SMEs

JEL Classification: M13, O32, M, D83, O31

Suggested Citation

, Knowledge Management as a Strategic Tool to Foster Innovativeness of Smes (November 2009 5,). ERIM Report Series Reference No. ERS-2009-025-ORG. Available at SSRN: https://ssrn.com/abstract=1410468

Haibo Zhou (Contact Author)

Erasmus University Rotterdam (EUR) ( email )

Haibo Zhou

University of Groningen ( email )

P.O. Box 800
9700 AH Groningen
Netherlands

Lorraine M. Uhlaner

EDHEC Business School ( email )

24 avenue Gustave Delory
Roubaix, 59057
France

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