The impact of knowledge management and strategy configuration coherence on SME performance

According to recent literature, effective knowledge management should be coherent and based on the firm's strategy. Prior empirical research, in contrast, tries to evaluate the impact of knowledge management initiatives directly on performance but finds inconsistent results and not allows the understanding of knowledge management contribution to competitive advantage generation. In this study we aim to investigate the impact of knowledge management and strategy configuration coherence on SMEs innovation and organizational performance through a quantitative analysis carried out on a sample of 60 manufacturing SMEs in northeast Italy. Our findings reveal that a significant coherence exists between knowledge management and strategy configurations. Most of the SMEs with a prospector and defender strategy adopt, in turn, an aggressive and conservative knowledge management. Moreover, we find that such coherence has a significant impact on the overall performance. This is particularly interesting since it suggests that the inconsistency in the results of prior studies on the impact of knowledge management on performance (Kalling in J Knowl Manag 7(3):67-81; 2003) may be due to the lack of consideration of knowledge management and strategy configuration coherence. © 2012 Springer Science+Business Media, LLC.