A Review Study on the Influence and Effect of Knowledge Management in Small and Medium Enterprises

Abstract

Knowledge Management (KM) in Small and Medium Enterprises (SMEs) is a crucial aspect of enhancing competitiveness, innovation, and sustainability in these businesses. SMEs, often characterized by limited resources and tight budgets, can benefit significantly from effective KM practices. This article reviews innovation strategies and digital transformation (DT) of knowledge management in SMEs with artificial intelligence (AI) in Kerala. Initially, it explores the evolution of KM practices and models, highlighting the dimensions and classifications of KM processes, and shedding light on the barriers and tasks confronted by SMEs in implementing effective knowledge management systems. The review provides the position of KM in SMEs, especially in the background of technologically driven enterprises. This study explores how KM serves as a strategic necessity in the contemporary business environment, facilitating data-driven decision-making and enhancing competitiveness in SMEs. Various KM strategies are dissected to illustrate how they empower SMEs to harness their intellectual capital for growth. The paper investigates the integration of AI technologies that are revolutionizing KM in SMEs. It explores AI-powered collaboration tools that facilitate knowledge sharing (KS), AI-enabled chatbots that streamline information reclamation, and AI-enhanced search mechanisms that improve knowledge access. Additionally, Blockchain technology is examined for its potential to bolster knowledge discovery and empower decision-makers within SMEs. Digital transformation, a pivotal aspect of SMEs' growth, is closely examined in the setting of KM. The study delves into how KM strategies drive data-driven DT, support knowledge sharing in virtual teams, and foster customer-centric initiatives. Moreover, it highlights the significance of cybersecurity in safeguarding the knowledge that fuels DT efforts. A particular focus of this review is on the state of SMEs in Kerala, India, and their acceptance of open innovation (OI) strategies. It investigates cross-cultural aspects of SME KM in Kerala and explores open innovation platforms designed to enhance knowledge sharing within SME clusters. The review also unveils the open innovation approaches that facilitate knowledge transfer and absorption in Kerala's SMEs. In essence, this review paper delivers an inclusive and insightful overview of the current state of KM in SMEs, including the transformative impact of AI and the dangerous role of KM in driving digital transformation and open innovation strategies, particularly within the unique context of SMEs in Kerala, India.