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Strategic Orientation in SME’s: The relationship between Organizational Structure and Knowledge Generation

SUMMARY

Knowledge generation (CG), organizational structure (OE) and strategic orientation (OE) are three central aspects for the functioning and performance of small and medium-sized companies (SMEs), since their sustainability is significantly related to their operational results. However, it is not yet clear how the different aspects of the SME organizational structure impact KM. And little is known about how SME strategic guidelines (OEs) moderate these same relationships. In this article, we discovered (1) the influence of different aspects of SMEs' OEs on the capacity of KM and (2) the way in which different OEs moderate these relationships. For this, we employ structural equation modeling (SEM) in the data, obtained through online research (Qualtrics), of 219 North American SMEs. Among the most important results is the positive - and counterintuitive - impact of formalizing OE in KM, regardless of PM OE; as well as the positive moderation of potential OE in the various relationships tested. Departmentalization, on the other hand, showed a strong negative influence on KM. These results provide important insights for SME managers when indicating how they can increase KM in their business by matching their OE and OE. The theoretical contribution of this study comes from the identification of the established relationships - until then little explored in the literature - between OE, OE and GC in the scope of SMEs. Finally, the results of the study indicate new avenues of research for investigations in the field of SMEs.

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