Social Capital On Knowledge Management Practices In Technology-based Smes

In the knowledge economy time, knowledge becomes one of the most important factors to firms' success, especially for those firms who are high-tech or knowledge-intensive. When the firms effectively apply and extend the knowledge that already exists in the firm, they can attain sustaining competitive advantage. Compared with those competitors in the market, they may be more possibly to gain success. Now more and more firms pay attention to knowledge management, the networks they possess of may have a great effect on their knowledge management behavior. Networks provide firms with access to knowledge, markets, or technologies. Social capital focus on firms' network resources, various scholars interested in network relationships have recognized knowledge management of networks and its link with competitive success. In many fields, the concept of social capital and knowledge management are gaining currency.In order to enhance technology innovation performance and market performance, High-tech Small-Middle Enterprises have to implement knowledge management. Based on the analysis on plenty of former theories about social capital, knowledge management and research on current condition within High-tech SMEs, this paper firstly supposed a conceptual modeling between social capital and knowledge management behavior. Using a social capital framework, this paper identifies structural, cognitive, and relational dimensions for social capital. Then this paper links these social capital dimensions to three aspects of knowledge management behavior and knowledge management behavior to firm performance.After the data collection and initial analysis, this paper used SME (Structural Equation Modeling) to establish the conceptual modeling and Amos software was taken as the analysis tool. Through evaluation and adjustment, an optimal and updated conceptual modeling was formed and all the text outputs were produced. According to these results, this research proposed many advices to improve firm's social capital and knowledge management behavior. Although the findings indicate that all three dimensions of social capital promote knowledge management behavior, they also indicate that effective knowledge management behavior enhance High-tech SMEs' technology innovation performance and market performance and the influence is remarkable. This research is valuable for High-tech SMEs to improve their knowledge management and enhance their firm performance.