Page 32 – 45 | Anthony Ugoani, Raj Kumar Bhatta, Johan Henrik

Small and Medium Enterprises (SMEs) has a critical character in supporting the nation’s economy. Nevertheless, SMEs have not developed their full potential. Therefore, it is essential for the entrepreneurs to search for and shift towards better strategies to become more successful. In the present turbulent environments, knowledge has been viewed as a major strategic competitive resource. Given the importance of knowledge, entrepreneurs are encouraged to develop their capabilities to manage knowledge which will move them to become more competitive and innovative. Extensive research is available in the knowledge management literature investigating the process of knowledge management as a composite construct; nonetheless little research has been done to examine the independent effects of the individual dimensions of knowledge management capability. In particular, little empirical evidence has been found to determine the execution of knowledge management practices in the context of emerging country and small business. The purpose of this study is to bridge the perceived gap by examining the relationship between knowledge management capabilities and the sustainable competitive advantage of organizations. Knowledge management process capabilities were conceptualized as four-dimensional constructs namely knowledge acquisition, knowledge conversion, knowledge application, and knowledge protection. This paper anticipates that the four knowledge management process capabilities are important antecedents of sustainable competitive advantage, which has, in turn, a positive relationship with the organizational sustainable competitive advantage of SMEs. The findings of this study will provide insights to entrepreneurs and help them to identify and develop effective strategies towards enhancing their sustainable competitive advantage.

Keywords: Knowledge Management, Sustainable Competitive Advantage, Small and Medium Enterprises

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