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Knowledge Management (KM)
Abstract
There are a growing number of studies on knowledge management (KM) in SMEs for various reasons. One has been the growing realisation that SMEs are in a unique situation because their most significant assets are intangibles comprised mainly of knowledge. SMEs constitute the largest number of enterprises in the economies of both developed and developing countries, as already discussed in preceding chapters. In Germany, for example, 97.9% of all companies fall within the scope of SMEs and provide approximately 36% of all industrial investments (Wimmer and Wolter, 2000). Likewise in Australia, SMEs account for 97% of all private sector businesses and produce 30% of the nation’s output (Australian Bureau of Statistics- ABS, 2001). Handzic (2006) stresses that organizations that manage knowledge better will deal more successfully and effectively with the challenges of the new business environment. KM is therefore perceived to be a key factor in realizing and sustaining organizational success for improved efficiency and innovation.
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