The Role of Physical Space and Information Technologies in Knowledge Transfer Processes within SMEs

Summary The ability to create and replicate knowledge is important for organizations. Some organizational resources are easy to transfer, but knowledge, which is usually tacit and based on individuals, is more difficult to reproduce. Because knowledge is a valuable, rare and inimitable resource (Barney, 1991: 112), it is a relevant source of competitive advantage (Grant, 1996: 376), and organizations should look for the most efficient and effective way to manage it. The present study focuses particularly on knowledge transfer, a phase of knowledge management (KM) in which new knowledge is assimilated by the majority of organization members. New knowledge is created or acquired by a few individuals or small groups in firms, and it is important for organizations to ensure that all of their employees are able to assimilate and use the new intangible resource (Cohen and Levinthal, 1990). This chapter analyses two organizational elements that support knowledge transfer in small and medium enterprises (SMEs): (1) the attributes and conditions of physical space and (2) the use of information and communication technologies (ICTs). To evaluate the phenomenon under study, a two-stage exploratory research was conducted on SMEs. Findings suggest that the design of physical space and the layout of the organization enhance the transfer of knowledge by facilitating the process in a fast and timely manner and allowing for open interaction among employees. Furthermore, informal communications mechanisms, such as face-to-face chats, messaging and email, are more relevant in a knowledge-transfer process than ICT. Technology itself will never transfer knowledge; it is mainly a means that, due to its inherent capabilities, can disseminate it.