Indicators of Knowledge Management Cycle in Indonesian Small and Medium Enterprises

Indonesian SMEs need to increase their competitive advantage because they are dealing with high business discontinuation rate. Sustainable competitive advantage in SMEs can be fostered by conscious and systematic approach of knowledge management, called knowledge management cycle. This paper aims to identify the phases and develop the indicators of knowledge management cycle in SMEs based on literature review. The phases and indicators identified are 6 knowledge identification indicators, 9 knowledge creation and acquisition indicators, 5 knowledge storage and retrieval indicators, 6 knowledge dissemination indicators, and 4 knowledge application indicators. These indicators are useful for assessing knowledge management practices in Indonesian SMEs. For further research, a model can be developed to examine the relationship between knowledge management cycle and performance in Indonesian SMEs.