Promoting knowledge transfer to Czech SMEs: the role of human resource development in increasing absorptive capacity

The development of a viable and vibrant Small- and Medium-sized Enterprise (SME) sector has been widely recognised as vital for sustaining the process of economic transformation in East and Central Europe (ECE). Owing to the high rate of change in competitive dynamics within transformation economies, SMEs seek to develop new knowledge themselves or, more likely, transfer, adapt and implement new knowledge obtained from outside sources in order to increase their competitiveness. The effectiveness of identifying and transferring new knowledge and best practice depends to an extent on the level of absorptive capacity of the organisation, which, it can be argued, is strongly related to its inherent level of Human Resource Development (HRD). This paper reports the initial results of a research project which investigates the priorities for HRD in SMEs to enable managers to identify, transfer, assess and implement new knowledge gained through access to external sources. The study identifies significant differences between HRD priorities identified by management and the preferences of employees and potential employees in the form of undergraduate business students. The conclusions indicate that firms should consider the importance of both their own and employees' motivational factors in managing knowledge transfer mechanisms.