Exploring the rationales for ERP and knowledge management integration in SMEs

Purpose – To survive in the global economy, SMEs have to improve their products, services and processes, exploiting their intellectual capital in a dynamic network of knowledge‐intensive relations inside and outside their borders. This paper aims to explore the rationales for the integration of knowledge management (KM) and ERP in SMEs and to present a conceptual model for their integration. Design/methodology/approach – A wide range of academic and practitioner literature related to ICT and KM adoption from SMEs is reviewed. On the basis of this review and analysis, a conceptual model is designed. Findings – The proposed model is regarded as an adaptable solution, where an SME with a traditional business structure uses existing IT applications and builds on them. Before applying the proposed model, SMEs should ensure that their KM initiatives fit into their organisational culture, or otherwise they should be prepared to change it. Research limitations/implications – The applicability of this model in an SME seeking to gain a competitive advantage needs to be explored. Practitioners should use the model in order to develop new platforms and extended ERP modules. Practical implications – The model can be used in any area of information and knowledge management. Originality/value – Using the model, SMEs can achieve the integration of ERP and KM, which is proven to be a necessity for them in the knowledge economy.