The Impact of Knowledge Management on the Competitive Advantage of Small to Medium Enterprises in Pakistan

Abstract

Contrary to the majority of knowledge management research that focus on large firms in developed countries, this research focuses on Small to Medium Enterprises (SMEs) in Pakistan, a developing country, where 99% of the total business establishments are made up of SMEs. The relationship between knowledge management, innovation and competitive advantage is explored in this thesis, as well as the moderating roles of the sector-of-business and size-of-firm. The questionnaire survey approach is used to gather data from the owners of around 160 SMEs operating in the fields of garment and textile, furniture, advertising, handicraft, food, consultancy, software/IT and trading. The results will then be analyzed through various statistical methods as appropriate. The expected findings for this study should demonstrate that knowledge management significantly and positively affects competitive advantage and that innovation also positively and significantly effects the competitive advantage. Conclusions drawn from this study can be beneficial to both practitioners and scholars in understanding and implementing knowledge management successfully thus improving and enhancing overall performance of firms and the economy in the context of developing countries.