Abstract
Background: New value innovations are organically ingrained and complementary to the
process of knowledge management. However, epistemological trends highlight only limited
studies to have explored how the effectiveness of knowledge management leverages new
value innovations.
Objectives: This research evaluates how the effectiveness of the small- and medium-sized
enterprises’ (SMEs) knowledge management systems enhance new value innovations so as to
identify the major paradoxes and a business model that coherently integrates knowledge
management with new value innovations.
Method: Using a qualitative research method, semi-structured interviews were used to explore
the opinions of 20 purposively sampled managers from 20 SMEs on how knowledge
management edifies new value innovations.
Results: A strong culture of information utilisation was found to enhance relevant analysis
and identification of new gaps in the markets that must be filled through new value innovations
or modifications of the existing products. However, poor culture of knowledge utilisation, cost
of knowledge management and the often poorly functional business information systems
were still reiterated as major paradoxes hampering effective knowledge management as one of
the determinants of new value innovations.
Conclusion: The study concluded with a model highlighting a continuum of knowledge
management–new value innovation pillars like a strong culture of information utilisation, and
encouragement of creativity that the executives must consider to create an effective knowledge
management foundation that subsequently leverages the overall effectiveness of new value
innovations.