Creation and categorization of knowledge in automotive components SMEs in India

Purpose – New knowledge creation has gained currency in the global knowledge economy. It is important not only for big firms, but for small and medium size enterprises (SMEs) also. Indian automotive components sector is one of the fastest growing sectors of Indian economy and is dominated by SMEs. This research work aims to study the knowledge creation and categorization in SMEs in Indian automotive components sector. Design/methodology/approach – This paper uses a survey method to collect primary data to study knowledge creation and categorization in automotive components manufacturers. Findings – Among various kinds of knowledge, knowledge about customers is given most importance. Though new knowledge creation is gaining importance, research and development spending as percentage of turnover are very low. International automotive components manufacturers have a better perception about knowledge creation compared to the prevalent view in Indian firms. In terms of relevance, latest and timeliness, Indian and international automotive components manufacturers pay little credence to the knowledge available through government institutions and industry associations. Industry associations and governments need to have a re‐appraisal of their practices and make their working more useful, fast and updated. Practical implications – This work has policy implications for government and industry associations. Corrective measures are suggested for industry associations and government bodies for contributing to knowledge creation and implementing knowledge management in organizations. Originality/value – First of its kind study in SMEs, particularly automotive components sector in India. It studies the current state of knowledge creation and categorization and suggests guidelines for improving knowledge creation in SMEs.