Implementation of KM in Indian SMEs: modeling the variables

It has been observed that all over the world, small and medium enterprises (SMEs) are considered as major source for economic growth. Indian SMEs sector is also one of the fastest growing sectors of Indian economy. So it is very important for SMEs to know what their knowledge assets are, and how to manage and make best use of these assets to get maximum return. The effective implementation of Knowledge Management (KM) in SMEs will be governed and facilitated by certain critical variables. The objective of this paper is to identify, discuss and consider the critical variables which are helpful for successful implementation of KM in Indian SMEs. In this paper, based on a review of the literature, eight critical variables have been identified, in order to enhance the competitiveness of SMEs. Interpretive Structural Modeling (ISM) is a methodology for identifying and summarizing relationships among specific variables, which define an issue or problem. It provides a means by which order can be imposed on the complexity of such variables. In the present paper the important variables for the implementation of KM in Indian SMEs has been analyzed to obtain an ISM, which shows the interrelationships of the variables and their levels. These variables have also been categorized depending on their driving power and dependence.