Over years, the economic impact of Small and Medium Enterprises in our societies has been significant. For instance, In Kenya, over 50 percent of jobs were created by this sector in 2005 leading to the growth of the country’s GDP. But despite its impact, SME’s often take the biggest blow in periods of slow business. When there are reduced orders, cancelation of orders, delayed payments by creditors, the impact is immediate as most of these firms don’t have a wide array of products or services compared to large organizations. Due to their limited resources, they operate without structures and have adopted informal business processes to manage their knowledge asset.
For the last two decades, previous researchers have proposed a number of knowledge management (KM) frameworks. Indeed there is abundant of literature on how large organizations have adopted and are practicing KM using some of these frameworks with outstanding results in their businesses. Unfortunately this is not the case for small and medium enterprise (SMEs). Prior studies have posited the general consensus in relation to the fact that the benefits of KM have not been fully exploited by small firms. Worse still, they argue that there is very little contributions on the critical success factors for KM adoption in SMEs. A more disappointing revelation from prior studies is the fact that empirical studies have been rarely conducted on this topic. To address these gaps, this study aims to investigate: knowledge management frameworks and practices infusion and adoption by Kenyan SME’s; the effect of the Knowledge management frameworks and practices adopted by the Kenyan SME’s on their achievement of their business strategy; and develop a more appropriate Knowledge management Framework for SMEs achieving business efficiency.
The methodology adopted for this study is descriptive taking a mixed method approach with three main stages as follows: a) A literature review on knowledge management frameworks, practices and adoption in small business; b) A semi-structured self-administered survey questionnaire developed and validated in a number of focus group discussions. The questionnaire survey conducted through self-administration, and/or interviews with managers of small firms belonging to the representative sample to be investigated; and (c) Experiment with a new design of a simple knowledge management framework to demonstrate the adapted SME Knowledge management Framework for achieving business efficiency. The project looks to share insights on how knowledge management frameworks and practices are adopted by Kenyan SME’s, the effects of the Knowledge management frameworks and practices adopted by the Kenyan SME’s and their achievements in line with their business strategies and how a refined knowledge management framework towards the Kenyan SME’s would aid in achieving business efficiency and effectiveness hence success.
The approach used for this case provided a practical experience into SME’s and knowledge management practices adopted by the Kenyan SME’s. Also, it provided key lessons that can be borrowed by any other SME’s interested in managing their knowledge more effectively in order to achieve efficiency, continued innovation and success. Startups and small organizations looking for a practical way of managing and implanting knowledge in their organizations may have point of reference. With the results, the study proposed a refined knowledge management framework designed for SME’s in Kenya. This aids in implementation and management of the Knowledge resource within any startups and SME’s. The suggested practices and elements served as key component when any of the small organizations planned on how to manage new and existing knowledge in order to achieve a competitive edge. Firms that leverage on knowledge, experience efficient operations, successful innovations, ability to predict trends, increase in customer service experience. Lack of reference material in relation to Knowledge management practices for Kenyan SME’s made it a challenge to harness the necessary data. The project provides a reference point for scholars and businesses in relation to knowledge management practices within the Kenyan SME, a knowledge management strategy and framework that can easily be adopted by SME’s.