Knowledge Management and Firm Performance in Algerian F&B SMEs: The Role of Trust as a Moderating Variable

Abstract

This study examines the influence of Knowledge Management (KM) on SMEs’ performance using data from a survey of 210 owners/managers of Algerian Small and Medium Enterprises (SMEs) operating in the Food and Beverage (F&B) industry. It highlights the moderating effect of trust as a facilitator of the potential acquisition, sharing, and application of the company’s knowledge to improve SMEs’ financial and non-financial performance. To analyze this moderating effect, we used the method of second-generation structural equations (PLS-SEM) using SmartPLS 3.2.7 statistical software. The results show a significant and positive effect of knowledge management on SMEs’ performance. On the other hand, these results indicate that the importance of the direct effect of KM on firm performance became very strong in the presence of a high level of trust. Implications of the study and future directions for research are discussed at the end of the study.