Knowledge sharing for innovation performance improvement in Micro/SMEs: an insight from the creative sector

Abstract

As the economy becomes more reliant on innovative, knowledge-intensive firms, understanding the interaction between knowledge and improving innovation performance is increasingly important. Despite the majority of UK businesses being micro, small or medium-sized enterprises (micro/SMEs), knowledge management research has tended to focus on large companies, and the findings may not be applicable to micro/SMEs, especially in the creative sector. Moreover, the important role played by knowledge sharing in innovation can be critical to successful performance for smaller players in the creative sector where resources are limited. Our study presents an insight from micro/SMEs operating in a highly knowledge-intensive and innovative creative industry - games/entertainment software development. Using a mixed method approach, we investigate knowledge sharing and its contribution to firm innovation performance improvements. Our findings suggest that micro/SMEs are at the forefront in the creative sector precisely because of their smaller size. Our study reveals evidence of knowledge donation but limited evidence of knowledge collection in the knowledge sharing process in micro/SMEs. We develop a knowledge sharing model for innovation performance improvement in micro/SMEs. This highlights the importance of industry context, individual knowledge and organisational size in the role of knowledge sharing in innovation performance.