The Role of Knowledge Management in Improving Small, Micro and Medium Enterprises Productivity: A Case of Nkonkobe Municipality, South Africa

Abstract

The paper explores the role of knowledge management (KM) in Small, Micro and Medium Enterprises (SMMEs) as a catalyst for an improved productivity. The paper highlights that KM as important resources, and as an intellectual capital to help small business achieve sustainable growth. The aim was to confirm that small business competitiveness requires an ability to create, retain, use and transfer knowledge as business intelligence. Data was collected through a systematic literature review, interviews and observations. The findings showed that SMMEs could improve productivity through knowledge sharing and transfer. It was difficult to test the robustness of sharable knowledge claim in the business processes. The paper shows that the business owners experience difficulties on how knowledge acquisition, retention and transfer impact their operations. Most of the SMMEs still lack the skills to convert tacit knowledge into an explicit knowledge for business intelligence and improved productivity. The paper recommended that the SMMEs give adequate priority to the importance of collaboration through business intelligence gathering and sharing. SMMEs should endeavour to convert their tacit into explicit knowledge. This might facilitate process replication, and knowledge transferability.

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