Exploring the Link between Knowledge Management Practices and Operational Performance: Empirical Evidence from Nigerian SMEs

The study examined the influence of knowledge management practices on various operational performance constructs, including product and service quality, cost management, and delivery speed, among SMEs in Nigeria. A descriptive research design was employed to collect data from a stratified sample of 393 SME respondents across various sectors via structured questionnaires. Data analysis was done using Partial Least Squares Structural Equation Modeling (PLS-SEM). Results reveal that knowledge application (β = 0.175, t = 2.531, p < 0.05) and knowledge sharing (β = 0.221, t = 3.169, p < 0.05) have a positive and significant influence on product and service quality. Knowledge capturing (β = 0.110), storing (β = 0.125), and creation (β = -0.031) were all insignificant. For cost management, knowledge capturing was the only significant one (β = 0.163, t = 2.012, p < 0.05). In contrast, knowledge application (β = 0.190), sharing (β = 0.169), and storing (β = 0.154) were all found to have a positive and significant impact on delivery speed. The results emphasise the strategic need for knowledge application, sharing, and storage to enhance the operational performance of SMEs. This study also encourages further investigation into other factors that affect the cost efficiency of SMEs in emerging economies.