Technology orientation’s moderating effect on the relationship between knowledge management, innovativeness and manufacturing SMEs performance

Small and Medium Enterprises (SMEs) performance extensively relies on several important factors including Knowledge Management and innovative practices. This research study examined the type of relationship that exists between knowledge management, innovativeness, Technology Orientation and manufacturing SMEs of Sultanate of Oman. Study also explored the moderating effect of technology orientation on the expected association between knowledge management, innovativeness and the SMEs performance. While using proportionate stratified random sampling and employing survey method, structured questionnaires were distributed to 500 manufacturing SMEs, out of total 1200 registered manufacturing SMEs. However, only 325 respondents’ surveys were usable for analysis. Based on the theoretical framework, five main hypotheses were developed and statistically tested and analyzed. Study was quantitative in nature and based on primary data. Manufacturing SMEs were target population. The Partial Lease Square – Structural Equation Modeling was used to analyze the nature of relationships that exist. Results supported the hypothesized direct effects of knowledge management on SMEs performance. In addition, technology orientation also moderated this relationship. However, the relationship of innovativeness to SMEs performance was not supported, similar result regarding the moderating effect of technology orientation on the relationship between innovativeness and SMEs performance. In general, these findings supported the view that knowledge management and innovative practices can enhance the overall performance of manufacturing SMEs by incorporating technology. Study provides significant contributions to both managers and scholars for further understanding of the performance challenges to Omani SMEs. Study established that improved performance of organizations can advance the economic prosperity in organizations and recommends more efforts be applied in developing and utilizing knowledge management and organizational innovativeness, while more government support is also desired. Recommendations and opportunities for future research are also indicated, along some limitations