Knowledge has long been recognized as a crucial competitive tool for organizational survival and competition. In practice, many organizations that are adept in leveraging and capitalizing their knowledge resources experience business success and performance improvement [ 4]. Despite dedicated attempts to follow the prescribed knowledge management (KM) guides and success path, small and medium-sized enterprises (SMEs) often encounter uncertainties and face the threat of possible failure or unmet KM results, which are little known and attended [ 11]. This study on KM capability was motivated with a view to filling this knowledge gap and in consideration of the important economic role played by SMEs in many countries. In Hong Kong, SMEs represent 98% of business establishments and 50% of total employment according to Hong Kong Government statistics circa 2007. In comparison with the large enterprises, SMEs could be even more nimble and flexible in adapting their systems and structures for KM purposes, with fewer problems
By Ivy Chan and Chee-Kwong Chao
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