Can knowledge management save regional development?

Australia needs to create innovative regions to sustain economic prosperity and regional development. In order to do this, regions will need to systematically address their knowledge needs and identify tools that are appropriate in maximising their effectiveness. Many initiatives have focused on information and communication technology (ICT) to enable knowledge exchange and stimulate knowledge generation, but active knowledge management (KM) strategies are required if ICTs are to be used effectively. These strategies must respond to the regional economic and social environments which incorporate small and medium enterprises (SMEs). This paper outlines the importance of KM for supporting regional cluster development and the key ways in which communities of practice (CoPs), a KM technique, have been used to add value in similar contexts. How CoPs and their online counterpart, virtual communities of practice (VCoPs), can be used and developed in regional areas of Australia is considered along with a program for further research.<br /

Socio-technical factors influencing channel use for knowledge-sharing in regional SME networks

The economic sustainability of regional areas is dependent on cross-industry innovation and knowledge-sharing among Small and Medium Enterprises (SMEs). The web-based initiatives deployed in regions worldwide to facilitate SME knowledge-sharing have typically been unsuccessful. This paper argues that the main reason for these failures is the lack of understanding of the socio-technical factors which influence the use of web-based channels (websites, online forums and expertise databases) as well as the more conventional channels (face-to-face and e-mail). This paper reports the findings of interpretive case studies of two regional SME business networks. It evaluates the major channels on six socio-technical criteria: link strength; trustworthiness; tacitness; usability; durability and currency. None of the channels were strong against all socio-technical factors. This highlights the importance of achieving an appropriate mix of channels to facilitate SME knowledge-sharing.<br /

Knowledge management for SME-based regional clusters

This paper considers the need for knowledge management (KM) in regional clusters comprising many small and medium enterprises (SMEs) and the appropriate KM techniques for this form of economic organisation. Information and communication technologies offer a range of tools to help such clusters develop into electronically-linked eClusters, making KM possible on a scale not previously possible. Most KM techniques have been developed by large organisations and their relevance to SME-based clusters has received little attention. Based on our analysis of the literature, we conclude that KM approaches based on personalised rather than codified information are the most promising model for regionally-based eClusters and that Communities of Practice arising from open forms of internet collaboration are most likely to be successful in this environment. Future research will identify key issues and appropriate techniques for supporting regional clusters with electronic systems for KM.<br /

Communities of enterprise : developing regional SMEs in the knowledge economy

Purpose &ndash; This paper proposes the concepts of Communities of Enterprise (CoEs) and Virtual Communities of Enterprise (VCoEs) to describe business networking patterns in regional areas where there is no central organisational or industry focus and small and medium enterprises dominate the economy. Design/methodology/approach &ndash; Based on analysis of the literature this paper builds on theoretical understandings of knowledge management, clustering and regional development.Findings &ndash; The concept of CoEs is most appropriate for regional areas characterised by many small enterprises in diverse industries. CoEs enhance development of regional clusters by contributing to their intellectual capital, innovation culture, value networks and social capital. The incorporation of ICT creates VCoEs which provide added potential by enabling regions to expand their learning potential through innovation.Research limitations/implications &ndash; This paper provides a conceptual foundation for empirical research into regional network or cluster development using ICT.Practical implications &ndash; Virtual Communities of Enterprise value creation potential is substantial but only when the socioeconomic elements of regional clusters are understood. The VCoE approach addresses the fact that without an industry focus it can be difficult to engage and link SMEs from different industries, although this is where the greatest potentialfor value creation in regional clusters is to be found.Originality/value &ndash; The Virtual Communities of Enterprise (VCoEs) concept specifically addresses the unique requirements of SMEs in regions. It has the potential to provide value for regions in a way few ICT based regional development initiatives have been able to achieve.<br /

Virtual communities of enterprise value creation potential for regional clusters

The research examines regionally networked small business practices. A new concept Virtual Communities of Enterprise is proferred to explain the nature of knowledge sharing both interpersonally and online, and its potential for creating value for small businesses and their regions. Social capital emerges as an essential pre-requisite for accessing value

Communities of enterprise: SMEs, ICT and regional development

Many regional economies have pursued a strategy of stimulating the development of regional clusters. Such clusters typically include small and medium enterprises (SMEs) as a core component of those economies. Effective cluster development in that context depends on SMEs sharing knowledge and generating innovation. ICT networks can be an important resource for this sharing and innovation. This paper proposes the concept of &lsquo;Communities of Enterprise&rsquo; to conceptualise the relationships and communication patterns used in cluster development. This concept builds on theoretical understandings of information systems, clustering and regional development. The value creation potential of Communities of Enterprise, supported by ICTs is substantial, but only when the socioeconomic elements of regional clusters are understood. The Community of Enterprise approach addresses the fact that without an industry focus it can be difficult to engage and link SMEs from different industries, although this is where the greatest potential for value creation in regional clusters is to be found. This paper concludes by considering the relevance of Communities of Enterprise for understanding and researching eCluster development in the Australian regional context.<br /

Factors Influencing Australian SMEs Knowledge Sharing Online

The Web offers a powerful tool for knowledge-sharing among small and medium sized enterprises (SMEs). Such online initiatives have, however, frequently been unsuccessful. This paper examines factors motivating SMEs to share knowledge online. It reports data from a telephone survey of 192 SME members of two successful regional business networks comprising members from diverse industries. Although the majority of SMEs actively used the Web in their daily business operations and most were willing to share knowledge face-to-face, this did not translate into willingness to share online. The most significant factors affecting the willingness to share knowledge online were the how many of networks SMEs were involved in, the number of years an SME had been in business, the geographical scope of their operations, and intensity of their use of the web. These findings challenge the commonly-held view that SMEs will automatically share online if the infrastructure is provided

Virtual Communities of Practice for Regional Small Businesses: Bringing Informal Networks Online

Virtual communities of practice (VCoPs) are online business networks which are increasingly used by large organisations as a key strategy for creating value in the knowledge-based economy of the 21st Century. This paper examines the applicability of VCoPs to cross-industry regionally clustered small business networks. Interviews conducted with government and industry informants in two regional areas of Australia indicate that these strategies used for establishing VCoPs are applicable to such small business networks. Both regions had regional networks with active member involvement displaying CoP characteristics. Significant social capital existed on which VCoPs could be built, and there were viable alternatives to satisfy the roles of sponsors and leaders. There were, however, significant impediments that will have to be addressed before VCoPs can be implemented such as the apparent reluctance of many SME owners to use the Internet and ICT generally, and the preference for informal networking. Funding to ensure that VCoPs are sustainable was also an issue. VCoPs appear to be extremely useful in linking small businesses in regional areas and in the development of viable regional clusters

Factors affecting SMEs\u27 willingness to share knowledge online : a path model

This paper presents the findings of a study of SME owner-managers that examined their willingness to share information online with other members of a local business network. The main variables associated with willingness to share knowledge online were found to be willingness to share information in conventional modes and the intensity with which they used the internet for business activities. A number of other variables were found to be indirectly or unrelated to willingness to share knowledge online. A significant locality effect was also identified which suggests that the social context of the network to which the business belonged influences willingness to share knowledge online. Our work supports previous research which concludes that online knowledge sharing initiatives should enhance relationships within the business network itself as well as the technical aspects of the networking platform and the technical competence of potential users.<br /

Encouraging SMEs to participate in the management of common pool resources

In this paper we contribute to an understanding of how small and medium sized enterprises (SMEs) can be encouraged to participate in the management of environmental common pool resources. We do this by applying ideas from general theories about collective actions and, using evidence from interviews of people with experience dealing with SMEs, show how the ideas are relevant to SMEs. In line with previous research, we present evidence that communication is also necessary to help ensure SME participation. We conclude noting some evidence that suggests that local networks may contribute to successful management of global common pool resources.<br /