Proceedings of the 12th European Conference on Knowledge ...

Tendayi Gondo and Edmore Kori
demonstrated an element <strong>of</strong> specialization <strong>of</strong> functions were performing relatively better on <strong>the</strong> three
major threads <strong>of</strong> <strong>the</strong> KM development process. Such specialization was also found to be consistently
related to <strong>the</strong> size <strong>of</strong> <strong>the</strong> SMS. Larger SMEs rated well on our generated KMS scale than smaller
ones. These findings compare well with those by Haan et al (2007), who observed that larger SMEs
were more likely to adopt IT resources to manage <strong>the</strong>ir logistics. In our analysis one major limiting
factor for most SMEs is <strong>the</strong> fact that specialization <strong>of</strong> functions in most SMEs is not too deep (Mentzer
et al 2001).
Several o<strong>the</strong>r limiting factors were also discerned, including <strong>the</strong> limited role <strong>of</strong> computer technology,
lack <strong>of</strong> credible leadership, absence <strong>of</strong> a business strategy and <strong>the</strong> relative lack <strong>of</strong> government
assistance. Government assistance has always played an instrumental role in SME development in
Ethiopia, through training and o<strong>the</strong>r Business Development Servises (BDS) – including technical
advise and <strong>the</strong> much needed financial assistance. Such assistance was however found to be limited
to a few SME who had been exposed to TVET training programmes. Gondo and Dafuleya (2010)
have however shown that such government extension services are always restricted in <strong>the</strong>ir
coverage. The role <strong>of</strong> IT as both an enabler and facilitator <strong>of</strong> <strong>the</strong> change process (Attaran 2004; Hung
2006; Trkman et al 2007; Groznik et al 2008) has not been harnessed. Several o<strong>the</strong>r studies have
underscored <strong>the</strong> important role played by IT more specifically at <strong>the</strong> business activity / process level
(Melville et al 2004; Ray et al 2007). Despite significant investments in computer technologies, a
considerable number <strong>of</strong> enterprises have not been able to derive full benefits due to <strong>the</strong>ir inability to
effectively deploy IT in <strong>the</strong>ir business strategies (Karim et al 2007). The likelihood <strong>of</strong> innovation in
SME operations have also been severe hampered by lack <strong>of</strong> benchmarking. Benchmarking usually
result in <strong>the</strong> adoption <strong>of</strong> best practices (Reijers and Mansar, 2005). Organizational learning <strong>the</strong>refore
becomes critical in any enterprise that seeks to be a knowledge driven enterprise. Our analysis also
reveals that some benchmarking tendencies in some SMEs are retrogressive in that <strong>the</strong>y do not
encourage effective learning. Many more SMEs seemingly compare <strong>the</strong>ir operations with o<strong>the</strong>r similar
and <strong>of</strong>ten struggling SMEs. We did not find any evidence <strong>of</strong> vertical benchmarking. Given a host <strong>of</strong>
<strong>the</strong>se and o<strong>the</strong>r limiting factors, it is not surprising to find out that many more seemingly adopt an ad
hoc or haphazard approach to KM. Such ad hoc approaches to KM are characterized by good
performance in some KM attributes and non performance in o<strong>the</strong>rs. Such performance and / non
performance is usually not consistent over time as some KM practices are not performed regularly.
Consequently it seems that <strong>the</strong>re is considerable distance to be travelled to arrive at a universal
appreciation <strong>of</strong> <strong>the</strong> need to incorporate knowledge portals in SME operations <strong>of</strong> Ethiopia.
Acknowledgements
The author would like to thank <strong>the</strong> institutional support rendered by <strong>the</strong> Ethiopian Civil Service College
under its World Bank / UNDP funded Urban Management Masters Programme (UMMP) and <strong>the</strong>
Department <strong>of</strong> Urban and Regional Planning at <strong>the</strong> University <strong>of</strong> Venda in South Africa. The views
expressed here are however <strong>the</strong> sole responsibility <strong>of</strong> <strong>the</strong> authors and not <strong>of</strong> <strong>the</strong> supporting
institutions.
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