The purpose of this paper is to show that small and medium enterprises (SMEs) play an important role in national economies.
The paper shows that we are experiencing a new kind of economy in recent times known as the “knowledge economy” which considers knowledge as the main resource of organizations for innovation and competitiveness.
The paper finds that considering SMEs as the microelement of a society or macro economy, knowledge management is crucial to drive them towards becoming learning organizations and to achieve sustainable competitiveness.
The research results in this paper can help SME leaders to understand the knowledge management dimensions that will move their organizations towards becoming learning organizations, and is especially relevant for developing countries.
