The Role of Knowledge Processing Management in SME
Development and Economic Growth
Published :
China-USA Business Review, March 2016, Vol. 15, No. 3, 130-136
ABSTRACT
Small and medium enterprises (SMEs) contribute to economic
development by virtue of their employers’ numbers and increasing share in Gross
National Product (GNP). SMEs strengthen the resilience of the countries to face
a competitive and challenging global environment. A large body of
investigations has been done on the identification of factors which facilitate
the creation or development of SMEs. One of the most important factors which
affect the creation and development of SMEs is individuals’ information
processing. In this study, by using a theoretical model, authors tried to
determine the role of knowledge processing in recognizing those opportunities which
lead to SME creation and development. Based on Olson’s theory (1985), authors
considered two moods for cognitions styles which affect knowledge processing in
entrepreneurs and lead to SME creation: intuition versus analysis and the
result of factor analysis showed that opportunities are both born and created
but not by accident, authors found those entrepreneurs who develop and create
SMEs have special characteristics in recognizing and processing the
information. They can process the business related information much faster than
typical people. This ability allows them to turn their knowledge into a large
endowment of assets which form a new SME or extend an existing one.
Keywords: economic growth, knowledge process, SME
Knowledge
Processing in SME Management
SME development is the process of recognizing profitable
opportunities and founding an organization to exploit them. Information
resources are scare. Due to the asymmetry of information, individuals with
higher alertness can grasp information and exploit it faster than others.
Hence, one of the most important factors which contribute to SME development
through opportunity recognition is the information processing style of an entrepreneur
(Julien & Vaghely, 2002). During last three decades, scholars showed that
knowledge processing style is mainly affected by the individual’s cognitive
styles. While an individual has an intention to create a . . . . . . . .(Read More)
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