Knowledge transfer through networks: the case of Turkish SMEs.

Abstract

The study explores managers' attitudes to knowledge transfer in Small to Medium Sized Enterprises (SMEs) in the Turkish textile sector. The problem all firms face is how to manage knowledge to gain efficiency and competitive advantage. The relationship between knowledge transfer and competitive advantage has become better understood and codified as a result of extensive research conducted largely in innovative industries in developed economies. This exploratory study seeks to understand whether the findings of the earlier research are equally applicable to firms in a traditional and mature industry facing substantial international competitive pressure and operating in an emerging economy. The research explores the managers' attitude to knowledge transfer and identifies the methods of knowledge transfer employed. Twenty structured interviews were conducted in March 2007 with a sample of managers and owners of small to medium sized businesses in four Turkish cities. The results suggest that whilst there are considerable similarities between knowledge transfer in the Turkish textile industry and the earlier studies, particularly in relation to the emphasis on the importance of factors such as trust and the forms and extent of collaboration employed, knowledge acquisition for product and process innovation is considered less of a priority. The strongest threat these firms face is price competition from lower cost countries which is resulting in industrial consolidation via mergers, acquisition and business failures. As a result the emphasis of the managers was more on the acquisition of reliable market and organisational knowledge rather than technological knowledge that might have lead to new product development.