Achieving best practice through knowledge management : benchmarking and competitive intelligence as techniques for strategic decision-making in small and medium sized enterprises
Date
2008-03
Authors
Wagner, Roland
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Abstract
SMMEs provide opportunities for employment and economic growth for South Africa.
SMMEs need to be as prepared as their larger counterparts in the ever-changing local and
global business environment. In order to become not only successful but also sustainable, the
smaller enterprise must be aware of what is happening in both its external and internal
business and operating environment. It is important for these smaller enterprises to take
cognisance of changes in the political and legislative environments, as well as changes in
customer expectations and competitor behaviour. Knowledge management tools such as
competitive intelligence and particularly internal and external benchmarking are vital for the
company’s survival.
Concepts such as benchmarking for internal and external best practices, as well as competitive
intelligence to gain important external decision-making knowledge, can be as beneficial to
SMMEs as they are to the large corporate entities. However, knowledge management is
largely ignored in the smaller company’s decision-making processes, due to financial and
time constraints as well as a lack of the necessary skills to utilise knowledge management
tools. Knowledge management can therefore be as important and beneficial to the smaller
enterprise’s operations and decision-making mechanisms as it may be to corporations and
large companies.
The broad goal of this study is to review the literature on achieving best practice by
implementing knowledge management in organisations. The examination of the literature and
the subsequent description of the outcomes could be used to create awareness that, like larger
companies, SMMEs need to process internal as well as external information in order to make
strategic decisions. The utilisation of CI tools such as SWOT analysis, PEST analysis and
benchmarking allow the company to systematically gather and interpret information. By using
the Baldrige criteria, a systematic and continuous approach for learning and improvement is
developed.
This methodology (the literature review) provides a framework for gaining the knowledge
that already exists (in books, journals and on the Internet). By disseminating this knowledge
according to the methods described, it is hoped that the research will construct already
existing knowledge into a new approach that might benefit the discipline as a whole. From the results of the study, it should become clear that certain aspects of enhancing CI in
smaller enterprises require attention. Although there are organisations that assist SMMEs
with relevant information, this information is scattered across various sources in different
formats. Not much information and assistance is available to smaller enterprises that provides
a clear framework of how to achieve internal CI practices by using the CI tools and business
models such as benchmarking within the formal structure of the Baldrige criteria.
Description
Thesis (MPhil (Information Science))--University of Stellenbosch, 2008.
Keywords
SMME, Baldrige, Knowledge management, Competitive intelligence, Small business -- South Africa, Small business -- South Africa -- Management, Small business -- South Africa -- Decision-making, Small business -- South Africa -- Information services, Dissertations -- Information science, Theses -- Information science