People-centered knowledge management systems and supply chain performance in SMEs

Purpose The study explores the impact of people-centered Knowledge Management Systems (KMS) on Supply Chain Performance (SCP). It also aims to reinforce the importance of people in an organization’s survival, particularly from a knowledge-based perspective, by empirically assessing the mediating effect of knowledge sharing on people-centered KMS and SCP. The model being assessed incorporates people-centered KMS that promote knowledge sharing and therefore improve SCP within Small and Medium sized Enterprises (SME) in developing countries, leading to their extended life span. Design/methodology/approach The study developed a knowledge-based SCP model using people-centered KMS as a predictor variable and knowledge sharing as a mediating variable, with SCP as the outcome variable. The data were collected from a sample of 580 SME owners from across Zimbabwe via a questionnaire developed based on validated constructs available in literature that was vetted through a pilot survey before distribution. The dataset was subsequently tested for validity of constructs and scales and analyzed using multiple regression. Findings The results of the study showed significant influence of three people-centered KMS, namely, Communities of Practice (CoP), Innovation Management (IM) and Organizational Culture (OC), on knowledge sharing but not from Social Capital. Thereafter, significant influence was also found of knowledge sharing on three process-based measures of SCP, namely, Time-Related Performance (TRP), Cost-Related Performance (CRP) and Responsiveness-Related Performance (RRP), but not on Operational Quality-Related Performance (OQRP). Thus overall, it was confirmed that people-centered KMS has a salutary impact on process-based SCP, with knowledge sharing serving as a significant mediator. Research limitations/implications The study makes a novel contribution to the extant literature by providing insight into how people-centered KMS impacts SCP through knowledge sharing. Additionally, the geographical scope of the study also makes it among the few that have studied supply chain management within the context of developing economies, especially those that face significant economic pressures, such as Zimbabwe. Finally, given the criticality of SMEs to the economic growth in developing economies juxtaposed with the low survival rates of SMEs therein, the study reveals a relatively low-cost strategy of knowledge sharing among supply chain partners as a valid strategy to improve the SCP of these SMEs in an effort to enhance their survival rates. The primary limitation of the study relates to potential difficulty in the generalizability of findings because data were collected from a single country. Originality/value The original contributions of the study include: utilizing a people-centered knowledge management perspective, an establishment of the relationship between KMS on SCP and demonstrating the salience of knowledge sharing as a mediator; addressing the dearth of literature on supply chain management in developing economies, especially those with stressed economies; demonstrating the usefulness of knowledge sharing as a relatively low-cost but effective strategy to improve the performance of SMEs in a developing economy and thus lead to higher survival rates, thus providing a tool that can be used by the public and the private sector in developing countries to build structures for successful economic development.