Capability Development Strategy in SME Manufacturing Firms: A Case Study

Abstract

The two research articles contained in this thesis, namely “Capability Development Strategy in SME Manufacturing Firms: A Case Study” (‘Article 1’) and “New Knowledge Management framework for manufacturing SMEs working in strictly regulated sectors” (‘Article 2’) are focused on different facets of the case study investigated at an engineering Small and Medium Enterprise (SME) over a period of 6 years. The two articles serve to better understand a successful process of capability development over a significant period of time and to understand the specific characteristics of knowledge management practices in SMEs with a specific focus on their life cycle, growth models and resources constraints. Existing literature regarding SMEs, their lifecycle and growth models, resource-based view of the firm, adaptability, and knowledge management (KM) were explored across the two articles to fully understand the context of the capability development process and its associated KM initiative. The study also involved the development of an innovative case study methodology using process research approach and aiming to create a comprehensive timeline for the capability development of the Company. In terms of findings, Article 1 indicates advanced management capabilities as an essential prerequisite for continued capability development in an SME, particularly over the long term. Article 2 creates a lightweight and highly usable KM framework for manufacturing SMEs dealing with complex regulatory environments for the first time or for those who are trying to streamline their compliance efforts from an ad hoc basis to a more systematic one. It is explicitly geared towards low cost, thus making it ideal for SMEs. Taken together, the two articles represent a comprehensive treatment of a long-term successful process to create new capabilities within the Company while extending existing ones.