Purpose – It is widely agreed that the know-ledge management (KM) lay beyond the success of companies. In case of small and medium sized enterprises (SMEs) the value of
KM is indisputable; some research has even shown that the majority of SMEs’ competitive advantages refer to knowledge management and intangible assets. However, KM has been studied extensively especially in large organisations, but not in SMEs. The purpose of this study is to find out the utilization of KM in brand creation and R&D within an international marketing channel (marketing channel replaces supply chain, because of the marketing nature of the case) of SMEs.
Design/methodology/approach – We propose an approach of a case study methodology as our aim is at theory building rather than theory testing. Case studies may be used as illustration in the context of making a conceptual contribution and to sharpen existing theory. The focus is on KM in international marketing channel between two SMEs. The case companies, one in Finland and the other one in the United States, are analysed during their first seven years of cooperation (1959-1965).
Originality/value –This methodology puts in evidence that KM utilization within an international marketing channel of two SMEs can include brand creation and R&D. Successful operation requires knowledge sharing, trust, commitment and learning.
Practical implications – The outcomes of the application suggest for managers knowledge sharing, commitment and trust for successful cooperation in marketing channel. on the one hand the Finnish manufacturer recognised the potential of its U.S. partner and granted the right to its brand, but on the other hand the partner realized a tremendous opportunity, together with a major responsibility, in creating a strong brand. This reflects consortium in licensing models.
Keywords – knowledge management, marketing channel, SMEs, brand, R&D