The purpose of this paper is to examine the role of knowledge management (KM) capabilities on small to medium‐sized enterprises' (SMEs') organizational performance.
In this study, Data were collected from 30 SMEs in Iran. The present study employs a questionnaire survey approach to collect data for testing the research hypotheses. The response rate was 60 percent. Relevant statistical analytical techniques, including regression for analysis, were then used.
The results indicate that all three factors of KM capabilities (knowledge acquisition, knowledge sharing, and knowledge application) have positive and significant effects on SMEs' organizational performance.
The practical implication of the results is that managers need to actively manage their firm's human capital to stimulate its capability in managing knowledge acquisition, sharing, and application. Furthermore, research suggests appropriate investments in KM initiatives can enhance organizational performance.
The main contribution of the paper is to provide empirical evidence about the impact of KM capabilities on SMEs' organizational performance. Also the findings of the study are important for both practitioners and academics.
