This paper aims to focus on how small knowledge‐intensive business service (KIBS) firms manage their knowledge‐based processes, or what are termed “intellectual assets”.
The paper is based on data collected from a sample of small KIBS firms located in Scotland. The methodological approach is novel in that it utilises the results of an online benchmarking tool allowing firms to gauge their intellectual asset base in comparison with other firms.
The paper finds that approaches to the strategic management of intellectual assets vary significantly according the size and type of KIBS firm. Differences in these approaches impact on the development of effective innovation processes, with resource deficiencies in smaller firms constraining their innovation capability.
It is concluded that small KIBS firms face particular challenges in managing the innovation process and establishing sustainable knowledge management practices, and may benefit from targeted policy intervention.
Unlike many other studies of KIBS firms, this paper focuses on how small KIBS firms manage their own knowledge processes as part of their strategic management approach for creating competitive advantage.
