Knowledge Management (KM) projects and practices can serve as a means to develop dynamic capabilities in order to stimulate optimization and innovation activities. The aim of this paper is to analyse how KM projects can contribute to the development of dynamic capabilities; the study is based on four case studies of KM projects implemented by some Italian small and medium size enterprises. Results show that under some conditions KM projects can give an important contribution to the development of dynamic capabilities for both optimization and innovation activitie
