Knowledge Management Enablers, Processes and Innovation in Small Manufacturing Firms : A Structural Equation Modeling Approach

Manufacturing sector is a significant contributor to nation’s Gross Domestic Product (GDP) and is the highest employment provider in developing countries like India. The sector which is dominated by Small and Medium Enterprises (SMEs) faces challenges that are multifarious such as low capital base, scarce availability of skilled labor, expensive technology and inadequate research activities. Knowledge Management (KM) is embraced as a powerful tool which helps organizations tackle many problems that are unique to SMEs and improve their innovation and competitiveness. This paper is a comprehensive study aimed at investigating the KM processes and factors that enable KM in small manufacturing firms. Further, the impact of KM processes on innovation performance of the firms is also analyzed. The results revealed that organizational culture and leadership support had a partial impact on KM, whereas technology had no impact on KM. The innovation performance of the firms is also partially influenced by KM