Senin, 25 Juli 2016

The Role of Knowledge Processing Management in SME Development and Economic Growth

The Role of Knowledge Processing Management in SME
Development and Economic Growth
By: Kambiz Talebi[1], Mahla Zare Mehrjerdi[2], Seyed Mohammad Reza Akbari[3]
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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