Influence of Socio-Economic Status on Knowledge Management Practice in Small and Medium Level Manufacturing Companies

Abstract

SMEs have a vital role in modern economies, as they are the primary source of entrepreneurial skills, innovation and employment. SMEs account for over 90% of enterprises worldwide, 50% of GDP and 60% of employment in many countries, implying that small businesses play a vital social and political role in national economic development. Despite their importance to many economies, however, SMEs are frequently locked in a cycle of low productivity and restricted expansion options. This article investigates the impact of socio-economic factors on knowledge management (KM) practice. The researcher has followed a non-experimental descriptive research design with a systematic sampling method. The sample size for this study is—164 employees from 3 companies in the Tiruchirappalli district with a total number of 822 employees. By using a payroll list in the companies, every fifth employee is considered as a sample for this study. This research has concluded that the socio-economic profile of the respondents has a prominent influence on the KM process by the chi-square test and Duncan Multiple Range Test (DMRT).