
Effective tacit knowledge transfer in small and medium-sized enterprises (SMEs)
This article is part of a series looking at knowledge management (KM) in small and medium enterprises (SMEs).
In a recently published Master’s Thesis1 for Novia University of Applied Sciences, Leopold Nkowa Njampa examines the barriers, strategies, and methods for effective tacit knowledge transfer in small and medium-sized enterprises (SMEs).
As raised in other articles in this series, SMEs face unique challenges due to their limited resources and smaller talent pools in comparison to larger enterprises. Because of this, Nkowa Njampa advises that tacit knowledge is valuable for SMEs as it critically represents a competitive advantage that separates them from their larger counterparts. SMEs can draw on the expertise, know-how, and spontaneous understanding of their limited workforce to drive innovation, operational efficiency, and overall business success.
Nkowa Njampa’s research has involved a systematic literature review. A keyword search of academic databases was followed by the application of inclusion and exclusion criteria, resulting in the identification of 19 papers for further analysis. From this analysis, Nkowa Njampa makes the following findings.
Barriers that hinder tacit knowledge transfer in SMEs
The findings indicated several key barriers:
- SMEs often need more dedicated time and resources for formal knowledge management initiatives. This means allocating more time for interactions during working hours or accommodating events that require employees to interact more.
- Lack of motivation is a barrier many managers may need to recognize regarding the strategic importance of tacit knowledge transfer. This is a result of managers not showing appreciation for work done or new ideas from employees, which would lead to them not wanting to share their tacit knowledge with other employees in the organization.
- There can be a lack of trust, with employees fearful of sharing their expertise because this might make themselves dispensable. Employees can also be hesitant to share their expertise due to a fear of a backlash from other employees who might not like or trust their ideas. Trust is essential when it comes to knowledge and information transfer or sharing because if one transfers the wrong knowledge, it will eventually be applied, which may cause problems.
- Language and cultural differences can impact effective tacit knowledge transfer., especially in international contexts. This results from having people speak different languages and with varied communication styles, so others may not understand them.
- Employee turnover is another barrier common with SMEs because many employees want to try new challenges (new jobs) after a short period. They leave with all the knowledge they have acquired, and this hinders the organization from sharing tacit expertise.
Strategies that SMEs can adopt to enhance tacit knowledge transfer
The reviewed research suggests that tacit-to-tacit knowledge transfer (direct transfer between individuals) is more effective in SMEs than attempts to convert tacit knowledge to explicit forms. This aligns with the personal, experience-based nature of implicit learning.
Key strategies SMEs can adopt for tacit-to-tacit knowledge transfer are internalization, combination, and organizational culture (innovation and organizational performance):
- With internalization, tacit knowledge becomes part of an individual’s understanding and skills, which they can share with others in different forms, such as storytelling or mentoring.
- A combination strategy is one in which an employee gets different tacit knowledge from various individuals or sources to create new knowledge for personal use. This is common in organizations that motivate their employees, as they will be willing to learn from multiple sources to know more and use the knowledge to stand out from their colleagues.
- Organizational culture as a strategy would bring different cultures together, leading to new idea generation and innovation. The enhancement of performance on the transfer and utilization of tacit knowledge within SMEs would eventually improve due to diversity.
Methods for transferring tacit knowledge in SMEs
Related to the above strategies, some key tacit knowledge transfer methods SMEs can use include:
- Creating a knowledge-friendly culture that fosters an environment that values and encourages open knowledge sharing through mentorship programs that formalize clear goals and outcomes. These mentorship programs can be very effective because they are conducted by experts who have gained extensive experience over a long period.
- Organizing regular knowledge-sharing events like workshops, seminars, and storytelling sessions to promote the exchange of experiences. During these events, experts can share their expertise on how they carry out a specific task based on their knowledge so rookies can learn from them.
- Guest speakers with experience and a track record of telling stories can also be brought in to share their knowledge to help boost new ideas and skill sets in new employees.
- Mentoring and apprenticeship programs that pair less experienced employees with seasoned mentors allow for the hands-on transfer of skills and insights through close collaboration.
- Storytelling and case studies are suitable methods because they use narratives to convey complex ideas and experiences in a relatable way.
- Creating diverse teams facilitates knowledge exchange across departments in a cross-functional team setting.
- Socialization as a method of transferring tacit knowledge is innovative as it leads employees to participate in social activities where they can share knowledge and interact more.
- Technology can be used to bridge geographical gaps and incorporate knowledge-sharing into HR practices, recognizing and rewarding employees who actively share their expertise.
Header image source: Andrea Piacquadio on Pexels.
Reference:
- Nkowa Njampa, L. (2024). Effective Ways of Transferring Tacit Knowledge in Small and Medium-sized Enterprises. (Master’s Thesis, Novia University of Applied Sciences.) ↩