Knowledge sharing in SMEs: has the Web a role to play in their competitive advantage?

Abstract

It is a well-known fact that small businesses form an integral part of the South African economy. However, small and medium-sized enterprises (SMEs) are currently facing various obstacles which may have an impact on their existence. These are, inter alia globalization, the lowering of trade barriers and reduction of import tariffs that has in turn resulted in increased international competition. Businesses are thus forced to carry out continuous improvements and innovation in order to survive, keep abreast of change and excel. Knowledge has been identified as a definite source of competitive advantage (CA). The literature review suggests that the knowledge base of an organization has become a central source of competitive advantage whilst innovation has become crucial for ensuring that these advantages are sustained. Various approaches are available to achieve and improve competitive advantage. It would seem that South African SMMEs are not using the mechanisms of knowledge utilization to gain competitive advantage, and this research project will seek to address this problem. The research project will specifically seek to establish how knowledge management (KM) and the World Wide Web (WWW) can be applied within SMMEs to gain competitive advantage. The study will be limited to the establishment of a relationship between KM and CA in SMMEs and the extent to which it is used. The research will aim to create a set of guidelines to establish more effective management of knowledge in organisations where it does not exist. The research will cover SMEs as SMMEs are invariably too small as they are often managed by one person. The research will focus on SMEs in the consulting civil engineering sector Western Cape where a limited number of SMEs will be interviewed.