The influence of SMEs core competences to the knowledge transfer practices

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School of Business | Master's thesis

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en

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89

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The purpose of this thesis is to research knowledge transfer practices employed by SMEs to transfer valuable knowledge from senior employees to younger employees in two groups of industries with different core competencies: craftsmanship-intensive and knowledge-intensive industries. Understanding the differences in practices used by SMEs is crucial for developing strategies to prevent knowledge loss effectively. This study aims to identify and compare the similarities and differences in knowledge transfer practices used between SMEs in craftsmanship-intensive and knowledge-intensive industries in Finland. This qualitative research employs 12 semi-structured interviews across seven SMEs operating in knowledge-intensive and craftsmanship-intensive industries. Thematic content analysis revealed eight themes of knowledge transfer practices. In the knowledge-intensive industry, four themes identified are: Active engagement with retiring workers, Communication, Continued involvement of senior employees and Saving knowledge for future use. In the craftsmanship-intensive industry, the four themes are: Engagement with retiring employees' work, Communication, Continued involvement of senior employees and Documenting knowledge. These findings show that SMEs employ a variety of knowledge transfer practices, addressing the transfer of both tacit and explicit knowledge. While both groups of industries share similar main themes, their specific practices differ. In knowledge-intensive industries, the transferred knowledge is often codifiable and explicit, making documentation and verbal consultation effective practices. However, also tacit knowledge transfer practices remain important. In contrast, craftsmanship-intensive industries predominantly deal with tacit knowledge that is difficult to articulate, necessitating alternative practices such as visual documentation, observation, and hands-on practice to ensure knowledge transfer. Moreover, craftsmanship-intensive industries rely heavily on in-person practices, while knowledge-intensive industries also utilize remote methods. Overall, in knowledge-intensive industry, practices facilitating explicit knowledge are seen more beneficial than in craftsmanship-intensive industry, where the focus is clearly more on practices facilitating tacit knowledge transfer. These differences underline the distinct approaches the two groups of industries adopt to transfer the valuable knowledge of senior employees to younger generations within SMEs in Finland.

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Leander Rapp, Marco
Kibler, Ewald

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