Role of Knowledge Sourcing in Albanian Small- andMedium-Sized Enterprises

Knowledge sourcing can contribute to the growth and development of Small and Medium sized enterprises (SMEs) in developing countries such as Albania. The role of knowledge sourcing in knowledge sharing and management has not been explored to a great extent, especially in the context of developing countries. SMEs constitute a significant proportion of economy in most developing countries. According to the European Union commissioned report on SME development in South Eastern Europe, Albanian SMEs constitute significant proportion of Albanian economy with SMEs constituting 99% of registered businesses. The report also states the weak points in SME development in Albania including human capital development and technology capacity among others. The lack of technological, financial and human resources hinders the growth and development of SMEs in developing economies. The small size in terms of human resources limits the potential of knowledge sharing within the organization. SMEs can take advantage of knowledge sourcing, in association with their local and international partners, to improve the efficiency of their existing products and processes. This paper investigates the role of knowledge sourcing in human capacity development in Albanian SMEs. This study focuses on the knowledge sourcing practices, if existent, in the SMEs and identifies potential barriers to knowledge sourcing. This study involves survey of 15 SMEs distributed among three priority economic sectors: construction, ICT, and financial services. This study would benefit researchers in understanding the role of knowledge sourcing in SMEs in the context of emerging transition economies such as Albania. This paper would also contribute to the existing literature on knowledge management in SMEs in Albania as well as other countries with similar demographic and economic conditions, especially in emerging post-communist transition economies.