Strengthening the Performance of SMEs Through knowledge management, Market Orientation and Competitive Environment

Abstract

This study aims to propose a framework for strengthening the performance of SMEs. It was identified that knowledge management, market orientation, competitive environment and access to finance are some of the effective tools employed by SMEs against large firms for their survival. A model was developed with the help of extensive literature review, thereby identifying the gaps to come up with four propositions. All four of these propositions were exhibited with a graphical model. The findings of this study suggest that Knowledge Management and Market Orientation have a strong association with SMEs Performance. The model further proposes that Access to Finance and Competitive Environment serve as a contingency between Knowledge Management and Market Orientation with SMEs Performance. This study significantly adds to the entrepreneurship literature and proposes a framework that has not been tested before. The theoretical model has a wider applicability and it can be used in any cultural context but it can prove more helpful in emerging economies.