Explanation of Knowledge Creation Processes: Case Study: Iran SMEs

The main purpose of this research is the explanation of knowledge creation processes (KCP) in small and medium size enterprises (SMEs) in Iran through an empirical examination and presentation the structural equation model (SEM) between their factors. The study is based on Nonaka and Takeuchi’s (1995) conceptual model and a standard questionnaire in SMEs of Mazandaran Province. To prove the effects and its contribution on KCP, a questionnaire survey was conducted on 300 active SMEs of Mazandaran Province of Iran. The results demonstrate the proposed structural equation model have best-fitting comparison with data of real world and show the amount effects of socialisation, externalisation, combination and internalisation on latent independent variable (KCP). Therefore, the structural equation of KCP is proposed. This model is showed biggest effect of socialization on KCP. The managers of SMEs of Iran can apply this structural equation to measure their firms’ potentials for their organisational performance promotion and find the situation of their firms across other competitors.

SEM, Knowledge Creation Processes, SME, Mazandaran, Iran.