Knowledge management and succession planning in SMEs

Abstract

PurposeAn ignorance of knowledge attrition caused by employee exits is considered as careless and can lead to considerable consequences regarding both a firm's financial capital and intellectual capital, or in other words an ignorance of the danger of knowledge loss is associated with a missing or improper succession planning. The purpose of this study is to gain a better understanding of how a medium‐sized firm copes with the danger of knowledge loss due to employee exit or long‐term absence.Design/methodology/approachData were obtained through semi‐structured interviews with 14 organization members from a German medium‐sized enterprise operating in the printing sector. These participants represented different departments and positions.FindingsThe findings demonstrate the influence of a precarious financial situation on activities related to knowledge management and succession planning. Although the organization members are aware of obvious needs for improvement within the firm, their actual scope of action is centered on the execution of current orders.Research limitations/implicationsThe data are cross‐sectional and were collected in one organization. Future studies should consider longitudinal designs across multiple organizations.Practical implicationsBased on the findings some suggestions were derived that may help firms facing similar circumstances.Originality/valueThe study's findings provide fresh insights into how an established firm tackles the issue of knowledge attrition and its likely implications for the firm's performance.