The dynamics behind the alignment between strategy and knowledge in small firms

Using four case studies carried out on a sample of 60 north-eastern Italian small firms, this paper examines how knowledge exploration and exploitation might be differently implicated in the creation of competitive advantages for small firms. A pilot quantitative study on the whole sample demonstrated the existence of an alignment between competitive strategies and knowledge management strategies. The present study tries to address this alignment as an ongoing process, drawing attention to the multiple ways through which this alignment takes form in practical activity.