Creation of knowledge in any organization is inevitably incessant. Its appropriate use and handling are strategic to the competitiveness of the organization. In many SMEs, while specific knowledge generation is a continuing activity, importance of its apt management could be crucial to its very existence. In a Globalised economy it is only knowledge creation and implementation which can keep the firm competitive and helps in its survival. SMEs collectively function as the fulcrum of the national economy, accounting for the bulk of industrial output, exports and employment. Indian automotive components sector is one of the fastest growing sectors of Indian economy and is dominated by SMEs. In order to compete effectively in global markets and achieve competitive advantage, manufacturers need to use effective knowledge management practices.This research work aims to study the implementation of knowledge management in SMEs in Indian automotive components sector to make the SMEs more competitive.

Multifaceted Contributions

Small and medium enterprises (SMEs) have been considered as the 'driving force' of modern economies due to their multifaceted contributions in terms of technological innovations, employment generation, export promotion, etc. India's robust and consistent economic growth over the past few years has accentuated the role played by SMEs in the development process of the country. SMEs alleviate poverty and propel sustainable growth especially in countries like India wherein capital is scarce and the supply of labor abundant.

The Government of India has continuously emphasized the role of SMEs in order to sustain the current high economic growth rate. Moreover, SMES have contributed 45% of the industrial output, creates one million jobs every year and produces more than 8000 quality products for the Indian and international markets. However, SMEs in India which constitute more than 80 per cent of the total number of industrial enterprises and form the backbone of industrial development are not export competitive and contribute only about 34 per cent of exports.

Indian automotive components sector is one of the fastest growing sectors of Indian economy and is dominated by SMEs. In order to enable Automobile SMEs tide-over the problems of technological backwardness and enhance their access to new technologies, it is imperative to offer them a conducive environment, which in the present context of globalization, calls for approach with knowledge playing a predominant role.

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