Knowledge management systems : an adoption framework for small and medium enterprises (SMEs)

Abstract

Technology is becoming increasingly affordable and accessible through advances in innovation. At the same time, valuable organisational resources are moving from tangible (e.g., steel) to intangible resources (e.g., knowledge). For this reason, knowledge is viewed by many scholars as a sustainable competitive advantage. To compete successfully in the knowledge economy, organisational knowledge should be appropriately managed through management practices encompassing the creation, storage, retrieval, transfer and application of knowledge using IT systems. The combination of hardware and software to drive knowledge management (KM) is known as a knowledge management system (KMS). The literature has consistently acknowledged the high failure rates of technology adoption in organisations. It can have devastating consequences for small and medium enterprises (SMEs) as they have fewer resources to recover from KMS adoption failure. Equally important is the fact that SMEs contribute substantially to the gross domestic product and employment of national economies worldwide. The same is true for South African SMEs. Given the picture of KM in the SME context, it is important to investigate potential factors that can lead to improved KMS adoption in SMEs. As scholarly literature on KMS adoption in SMEs is limited, this study could contribute uniquely to the body of knowledge focused on these factors. Within the Technology-Organisation-Environment (TOE) framework, Diffusion of Innovation (DOI) and critical success factors (CSF), the study constructed a framework for KMS adoption in SMEs. After constructing a preliminary conceptual framework from the literature, data was collected using a two-phase approach. In phase one, four mini focus groups comprising four SMEs each were interviewed. The thematic analysis revealed eight themes that expanded the existing framework. The purpose of phase two was to validate the framework developed in phase one through face-to-face or online discussions with six SME subject matter experts. Phase two identified five themes that further confirmed and strengthened the framework. The study contributed on a theoretical, empirical and practical level. Having identified several key factors for KMS adoption, the framework aims to improve the use of KMS in SMEs by employees and, as a result, SME performance and sustainability. Future research could condense or identify additional factors to test the framework developed in the study. In addition, the framework could be tested on specific industries or with larger sample sizes.