¹Faculty of Business and Science, University of Akureyri, Nordurslod, Akureyri, Iceland

Correspondence: Ingi Runar Edvardsson, Faculty of Business and Science, University of Akureyri, Nordurslod, Akureyri 600, Iceland. Tel.: +354 460 8613; Fax: +354 460 8999; E-mail: ire@unak.is

Received 13 June 2008; Accepted 2 September 2008.

Abstract

This paper presents findings from a survey on knowledge management (KM) in small and medium-sized firms (SMEs) in Iceland conducted in 2007 and was a follow-up of a similar survey from 2004. The paper analyses whether the extent, strategy and effects of KM in SMEs in Iceland has changed in the period. The main conclusion is that KM is not losing ground among SMEs in Iceland. Identical numbers of firms used KM in 2004 and 2007, and slightly more firms were examining the need in 2007 than 3 years earlier. It is, however, of great concern that many more firms have no KM strategy in 2007 than 2004. More managers in SMEs need to consider the strengths and weakness of KM, and to implement a formal KM strategy. Only 24% of Icelandic firms have a KM programme in place, and most of them have invested in simple information and communication technologies. The most common way of sharing tacit knowledge in Icelandic firms is encouraging face-to-face communication. The surveys indicate that benefits of KM programmes are quite positive even in SMEs. Accordingly, the research findings indicate that KM could improve organisational and managerial as well as financial aspects of SMEs. This research was carried out in only one country, and is based on a questionnaire. Its results should therefore be interpreted with care.