Author(s): Akeke Niyi, Akeke Adenike Rita, Oyebanji Olufemi Mathew
The study examines the intervening role of competitive strategy on the relationship between knowledge management and firm performance in the SME sector. Data was collected from a sample of SMEs operators operating in Southwest of Nigeria through a cross-sectional survey. Out of 1428 data instruments circulated to firms that were sampled, 1158 questionnaires were returned out of which 978 provided useful responses. The results of the study revealed that direct effect of knowledge management is significant with a reducing effect on performance. The results showed further that the addition of competitive strategy contributes a significant mediating effect on the relationship between knowledge management and performance of SMEs. It is concluded that managers of business must search for the development of business model that will enable them identify and provide customer value in a unique form and at low price for improve performance relative to competitors.