Relationship between knowledge management and the productivity of small and medium enterprises

Abstract

SMEs in the Philippines are constantly regarded as the backbone of the economy. In the continuous search for ways to improve, researchers have tested numerous new business concepts and practices to increase the productivity of SMEs in the country. This study, however, focuses on one of the fundamental aspects of businesses, and that is, “how do businesses know, what they know?”. This study determined the SMEs knowledge management and its relationship with organizational productivity. Using the quantitative method of research, a survey questionnaire was administered to individuals who work in SMEs in the town of San Nicolas, Pangasinan. The respondents were asked on their perspective of the effectiveness of the SMEs in managing knowledge and its productivity status. The results of this study include: a) Most of the respondents perceived their SMEs to be effective in knowledge management; b) Most of the respondents perceived their SMEs to be highly productive; and c) There was a moderate high positive correlation between knowledge management effectiveness and productivity.