Organisational culture plays an important role in the processes of knowledge creation, transfer, exploitation and exploration. It impacts on attraction, development and retention of human capital and thus contributes to (or hinders) the value creation process. The aim of the present paper is to study how small firms have adapted their strategies in response to requirements for higher dependence on knowledge, information and high-skill levels, and the role of the organisational culture in the resulting strategy implementation, to address “knowledge absence”. The research method chosen to explore the interrelationship between strategy, knowledge strategy and culture and day-to-day practices in place is qualitative. It consists of two phases. In the first phase semi-structured interviews were conducted with managerial staff of 22 small European Union (EU) firms (personnel less than 50 people) from three sectors that are considered to be knowledge-intensive, namely information technologies (IT), finance and tourism. In the second phase, in-depth case studies of two of the firms based on the data from the interviews were developed. The results of the research to date show that organisational culture links closely to the knowledge management strategies and practises in place and is an important factor impacting on the value creation process. This exploratory research provides evidence about good practices in relation to how successful knowledge strategies acknowledge and create an organisational culture that facilitates the process of generating knowledge resources and building human capital in the context of small businesses. The outcomes of this study contribute to the development of knowledge strategy theory and offer a useful practical framework to facilitate further empirical studies. The research findings and evidence of good practices will inform future research.