pag. 310	Considerations about Intellectual Property Rights, Innovation and Economic Growth in the Digital Economy Author: Carmen Nadia CIOCOIU
	Abstract Three technological trends—the omnipresence of information in digital form, the generalised use of computer networks, and the rapid proliferation of the World Wide Web—have profound implications for the way intellectual property (IP) is created, distributed, and accessed by every sector of society. In the last ten years much discussion of these issues has occurred in the literature and political and legislative domain. The information infrastructure offers an extraordinary ease of access to a vast array of information and peril for information to be reproduced inappropriately and for information access to be controlled in new and problematic ways. IPR regimes affect the diffusion of scientific knowledge, the innovation process and, ultimately, economic performance. Information technology raised some problems regarding the protection of intellectual property and drived to the discovery of a large number of solutions during past years. This paper's purpose is to reveal what is the situation regarding IPR protection, economic growth and innovation in Romania, in the context of digital economy. JEL Classification: O34  Keywords: intellectual property rights (IPR), innovation, economic growth, digital economy, Romania

 

pag. 324	Contributions to the Development of a General Methodology for Innovation and Forecasting Authors: Gabriela IONESCU, Ion IONITA
	Abstract The paper presents authors' contributions to the achievement of a first variant of the innovation and forecasting methodology. The various tools of TRIZ methodology (laws of systems development set for technical systems, the matrix of contradictions, the 40 inventive principles, the 39 parameters, Su-Field analysis, the method of the 9 screens etc) are already available, or can be customised to the specific type of the organization system. The TRIZ methodology for economics was embedded in a more general methodology for innovation and forecasting. The eight laws of evolution systems were customised to economics. The authors also make a comparative analysis of the technical TRIZ matrix to the company management matrix. Based on the analysis performed, it can be concluded that a general methodology can be prepared for innovation and forecasting, making use of TRIZ methodology, by customising some classical instruments of the technical field, and bringing in other specific economic tools. JEL Classification: C53, E17    Keywords: innovation, forecasting, matrix, methodology, TRIZ

 

pag. 332	Differences Awareness Model to Fundament Long Term Strategy Extension in a New Emerging Market Author: Elena Madalina SERBAN
	Abstract The globalization opened the opportunity for multinational companies to increase their businesses in emerging markets and also to local giants from developing countries to step in the western markets. The objective of this paper is to propose a model for analyzing the differences between operating businesses in emerging markets and developed markets. The model purpose is to be applied in the strategic process by mainly the multinationals or local giants intending to develop long term businesses outside their traditional geographies. The studies on emerging markets identified two main axes to be considered when appreciating the attractiveness of the markets: the business dynamics both inside and outside the company and the institutional environment, as facilitator of efficient encounter between sellers and buyers. JEL Classification: M11, L2 Keywords: business dynamics, developed markets, strategy, emerging markets, institutional environment

 

pag. 348	Economic Indicators of Condition and Tendencies of Serbian Economy Author:  Zorica SREDOJEVIC, Marko JELOCNIK, Jonel SUBIC
	Abstract Global economic crisis has, following financial crisis, hit real sector, and as after effect, large number, mostly developed countries in the world are in recession. Serbian industry is also influenced by global economic crisis. Outer debt is significantly and constantly increasing since beginning of transition process. Main cause to it is rather large disproportion between import and export. Trends in structure of outer debt indicate on notable decrease of national debt on account to private one, during whole transition period. On short term there is no significant risk for country on account of outer debt, but for long term elimination of this risk, it is necessary to considerably increase total export. Former policies should be linked to unconventional employment initiatives, as for new labour, as for redundant ones from restructuring economy branches. State has prominent role in transition process, by helping market exhibit its functions through physical and institutional infrastructure, as well trough public sector, removing most of the market obstacles, and stimulating technical-technological development and education. JEL Classification:  A10, E0, E29 Keywords: economic indicators, economy, transition, tendencies

 

pag. 359	Investment Process in Romania and Institutional Dysfunctionalities Author: Dan Marius VOICILAS
	Abstract The concepts set out and the macroeconomic policies implemented during the past twenty years have been different and controversial. They have aimed at creating an economic environment conducive to the infusion of foreign capital and development of sectors considered as a priority at that time, which can ensure a sound macro-economic stability, taking into account the fact that there is not enough domestic capital to participate in achieving these objectives. In this paper we will focus on foreign direct investment (FDI) policies designed to promote them, their effects on national economy in general terms and features of investment in rural and agricultural sector, which we consider key elements of success in economic growth. Also, the institutional framework in which the investment process took place is thoroughly addressed given that most times the general investment climate of a certain market is influenced both by legislation and the institutions involved in economic life. The experience of transition and the experiences of other countries have shown how important are institutions created to coordinate, support and control of investment activity. We included in this analysis institutions and organizations in Romania with responsibilities in the investment field. Based on this analysis, and on the contributions of institutions to create the proper economic development, but also by investors' direct contribution to the creation of this framework by policy makers recommendations, it is obtained a profile of the business environment in Romania, including what is best but what is missing and it needs to be implemented. We consider that this approach is an important step in addressing the institutional investment process and it creates prerequisites of disseminating essential information and remedial implications to stakeholders. JEL Classification: G28, O11, Q19 Keywords: business environment, foreign direct investment, institutions, investments, Romania

 

pag. 371	Country Risk Importance on Investment Decision Making Authors:  Elena Mihaela ILIESCU, Felicia Alina DINU
	Abstract Given the controversies, especially from the last period, in terms of credibility of the major international rating agencies, this article aims to assess the correlation between country risk ratings and the evolution of FDI flows in the receiving economies. In this regard, we chose to analyze the degree of these influences manifestation in Romania. The study, based on statistical information on the rating granted to Romania and the value of foreign direct investments during the period between 2000 and 2010, confirms the indirect natural connection of the two indicators. Thus, the results show that, when the rating falls in an immediate lower class, foreign direct investments are reduced by 1173.76 billion Euros, which represents 27.2% of the investments average mean made within the 11 analyzed years. Conversely, we can observe an influence of 0.05% of FDI on Romania's rating. The data obtained demonstrates the interdependence between the two indicators, however, a low correlation can be observed. The qualitative analysis performed, showed arguments that support the decrease in importance of rating, such as: reducing the credibility of rating agencies as a result of exposing the weak points from the methodologies applied, granting of incorrect ratings, the inability to foresee the financial crisis or increasing the transparency of governments which makes more and more information available to investors. This doesn't mean that the role of country rating is denied. It remains an important decision making criterion in guiding the flows within the global economy space, but it is not sufficient and it is not indispensable. JEL Classification: F21, F41 Keywords: country risk, foreign direct investments, interdependence

 

pag. 380	Developing an Integrated Monitoring and Evaluation Flow for Sustainable Investment Projects Author:  Florin TACHE
	Abstract Under the circumstances of certain weaknesses in the monitoring and evaluation processes of sustainable investment projects, the paper aims to develop a general integrated flow, encompassing both a project monitoring system and also a project evaluation system for the investment projects involving economic objectives, as well as cross-cutting social and environmental targets. The whole approach is being presented as a flowchart, which highlights the intimate relationship between the monitoring and evaluation processes, and provides a formal framework for performing a logical monitoring and evaluation process, taking into account simultaneously the economic, social and environmental perspectives, within an investment project. Last, but not least, the article states both the estimated advantages and the disadvantages of such a managerial tool, opening new perspectives for developing further improved models and systems. JEL Classification: H43, O22, Q01  Keywords: evaluation, flow, investment projects, monitoring, sustainability

 

pag. 392	Comparative Analysis of Emerging Green Certificate Markets from a Computable General Equilibrium Perspective Authors:  Cristina GALALAE, Alexandru VOICU
	Abstract Whether using market mechanisms to allocate green certificates in various countries is an optimal solution for stimulating green electricity production represents a question proposed by numerous recent comparative analyses, with opinions being split. Our paper proposes a differing perspective, employing modern computational economics techniques in order to study if general equilibrium is achievable, nationally and internationally, and how it compares with the non-market steady state. We analyse the field, determining exogenous and endogenous factors of influence that we cast into functional relationships via econometric estimation. Subsequently, we study four multi-period general equilibrium models, recursive and non-recursive, solving the latter ones via a Johansen/Euler method for simultaneous all-year computation. General equilibrium is shown to be achievable but dependent on country specific conditions, with optimality being relative in a globalised context. In closing, we present a case study focused on providing useful guidelines for future international marketing efforts in this domain. JEL Classification: C68, M39. Keywords: computational economics, general equilibrium, globalisation, multi-period model, optimising behaviour

  

pag. 399	Ecological Fiscal Policy: between Theory and Practice Author: Mariana VUTA
	Abstract The environment is becoming a more important element in the public decision process. Governments, non-profit organizations, civil society and firms are involved in different projects in order to protect this public good. But what does a state do in order to correct the damages brought upon the environment? This paper aims, on one side, to underline state's fiscal leverages in order to internalize costs related to pollution externalities, and on the other side to preset clean investments encouraging instruments. The study will show that even though in Romania the fiscal pressure in high budgetary encasements obtained though environmental instruments do not help in putting in place a coherent policy with positive and visible effects upon future generations. JEL Classification: Q50, H23  Keywords: environment, environmental taxes, ecological fiscal policy

 

pag. 406	Integrating Market Based Instruments for Pollution Control - Strategic Option for Enhancing Competitiveness within Energy Industry Author: Oana Catalina TAPURICA
	Abstract The paper aims to emphasize the efficiency of using market based instruments for both reducing pollution and enhancing competitiveness within the energy industry. Given the previous experience of European countries, as well as the characteristics of the main market based instruments, the paper is focused on developing two alternatives for combining green certificates schemes, white certificates schemes and emissions trading schemes (black certificates schemes) in strategic options, aiming to increase the competitiveness of the energy industry and to decrease the emissions generated within this field. Each strategic option presented includes an integration scheme, as well as the main advantages and disadvantages deriving from the implementation of these mechanisms. The paper also demonstrates that an integrated market based instruments' scheme is more efficient and even cost-effective than using single instruments. The whole analysis places a higher focus on white certificates, as these are the more recent market based instrument for enhancing competitiveness within energy industry. JEL Classification:  Q42, Q52 Keywords: competitiveness, energy industry, green certificates, market based instruments, pollution control, white certificates

 

pag. 417	Corporate Philanthropy in Top Romanian Companies Authors:  Ana-Maria PETRACHE
	Abstract This paper aims to provide an insight on the CSR activities developed by top Romanian companies and to analyze whether some economic indexes as number of employees and turnover have a considerable impact on the decision of companies to involve in social responsible activities. The approach is based on a cross-analysis of the statistical weight of donations for eight top company donors in 2007 in Romania. By reviewing the results of the research, the author considers the opportunity to develop a case for CSR, even in its basic form: philanthropy, as a premise for long run social performance. JEL Classification: M14, F23, A13 Keywords: corporate philanthropy, corporate social responsibility, microeconomic indexes, stakeholders

 

pag. 425	Motivation of the Human Resources for a Sustainable Organizational Development Authors: Armenia ANDRONICEANU
	Abstract This paper addresses the issue of human resources motivation which is considered one of the most important ways for a sustainable organizational development. The author was conducted a special research on the issue and the main findings are presented and analyzed in the content of this paper. The objective of the research was to identify new possibilities for increasing the degree of human resources motivation for supporting a more sustainable organizational development. Based on ideas from critical realism and critical theory, the paper argues against the limitative approach of motivation of the human resource in the 21st century. The research has made it possible to identify the most relevant behavioral dimension of human resources motivation process. The last part of the paper includes some recommendations for the modern managers in order to support them to become higly effective along the sustainable organizational development process. JEL Classification: L2, M1, M2, M5 Keywords: human resources, management, motivation, sustainable motivation, wages

 

pag. 439	Performance Issues in the Public Healthcare Services Authors:  Claudiu CICEA, Cristian BUSU
	Abstract A well known truth to both the experts and the population states that health should be seen as an investment too in the most important factor of production, the human factor. In the following paper we analyzed the economic efficiency in the sanitary field using some specific indicators such as net present value, internal rate of return, cost/ benefit ratio. JEL Classification: C60, I10, I15. Keywords: efficiency, health care, internal rate of return, net present value

 

pag. 450	Social Profiles and Social Behaviour and Attitudes towards Gaming and On-Line Gaming in Spain  Author: Francisco Javier RUIZ MARTÍNEZ
	Abstract For the last two decades our world has experienced increasing globalization linked to the revolution in Information and Communication Technologies (ICT) leading to new business spheres escaping from the traditional Nation-State control. The gaming business is one of these areas and has recorded a notable increase in profits in the last decade: gambling, betting and network games constitute some of the main issues developed by ICT companies located beyond State control. The action of the States is focusing on the formulation of new public policies that allow them to control these activities. But first a deep social description of gaming is needed to know which actors are involved in this field of activities, which is the profile of the gamer and what kind of social attitudes are carried out by users and companies taking part of the business. This article focuses on the social profiles and the social behaviour and attitudes towards gaming in Spain, and specially in the transition from traditional gaming to on line gaming. JEL Classification: Z13, Z18 Keywords: gaming, internet, social profiles, social behaviour, social attitudes

 

pag. 460	Economic Efficiency of Social Insurance in the Field of Health in the Context of European Standards Author: Gheorghe ALEXANDRU
	Abstract Socio-economic efficiency analysis in health services has the general objective of the Romanian health care system evaluation in the context of current European standards. Comparative studies show a low level of efficiency as a result of complying with the policies of Western countries, and a modest health management. Polls reflect the population's dissatisfaction with the current health care system, medical staff and disagreement regarding the government policies in this area. Research results lead to the need and opportunity to reform the medical system and social health insurance system. JEL Classification: I10, I18 Keywords: iefficiency, reform, the standard models, transition

 

pag. 465	The Importance of Management Control in Monitoring the Pharmaceutical Industry Performance for Competitive Advantage Authors:  Florinel Marian SGARDEA, Elena Monica SABAU, Mihai VU A
	Abstract Management control and thus managerial accounting will adapt to the requirements of market economy in terms of knowledge. Another thought other action. The sustainability of a business depends on how we use resources but also can correct measurement of performance of a project or activity. The distinction between ‘traditional' and ‘innovative' management accounting practices can be illustrated by reference to cost control techniques. Traditionally, management accountants' principal technique was variance analysis, which is a systematic approach to the comparison of the actual (real costs) and budgeted costs of the raw materials and labor used during a production period. In this paper we wanted to show that the new management control procedures are part of knowledge management. Today is important for pharmaceutical companies to produce new products of advanced research results. This means that, for large companies, research expenditure budget is generous. More projects need to be monitored, evaluated and presented to the Board of Directors. What indicators will be kept for financial analysis? How prospective financial situation will look in five years? What will be the level of risk accepted by investors? JEL Classification: M11, M41 Keywords:  competitive advantage, management control, performance measurement, sustainability

  

pag. 473	Aspects of Technical Progress in Romanian Agriculture Compared to Some EU Countries Authors: Florentina CONSTANTIN, Laura CIOBANU
	Abstract The importance of using technical progress factors in agriculture varies from one country to another and the influences of these factors on yields and agricultural production are essential. Thus, in this paper we considered necessary and appropriate to achieve the dynamic analysis of the main factors of technical progress in agriculture referring to agricultural technical endowment, fertilizers and irrigation. On the other hand, we accomplished the dynamic analysis of the outcome indicators in agricultural production in Romania compared to some EU countries, as well as the gaps registered between countries under study. We also point out the positive and negative effects of technical progress in agriculture which had developed under the revealed indicators evolution. JEL Classification: Q15, Q16 Keywords:  technical progress, irrigation, mechanization, soil fertilization, economic effects, ecological effect

 

pag. 484	Dynamics of Rural-Urban Relations in Urbanization Context Authors: Laura Maria FURDUI, Elena Mihaela PRUTEANU, Matei Valentin SERBU
	Abstract This article aims to outline the actual situation in the rural-urban relationship by showing how the two key elements interact with each other and by highlighting the main dysfunctions resulting from the interplay of the two entities in terms of the dispute over the land fund they need. The purpose of this study is to highlight types of connection established between villages and towns- specific symbols for urban on one side and rural on the other-thus explaining the way the entities subjected or not to the continuous process of development, starting from economical and social level changes which the new urban-rural relation requires. By determining the impact that urbanization process has on agricultural land fund, the suitable environment for openness and adaptation to modern society requirements can be created. In the same time, this complex process involves a clear shaping and the completion of indispensable connections between rural and urban areas. JEL Classification: R12, Q15, Q25 Keywords: development plan, land fund, phenomenon of urbanization, rural-urban, sustainable development

  

pag. 492	Ways to Finance Investments within the Local Public Administration  Authors: Monica Daniela TESU (PASCULESCU)
	Abstract The aim of this study is to disclose several ways to finance investments within the local public administration. The study has revealed that the investments in local public administration may be made by establishing public-private partnerships, attracting and using grant funds and using loans to finance public services and investments in local infrastructure with governments' warranties or local authorities' warranties. This study provides a realistic background for finding solutions to the problems encountered by the local public administration in order not only to surmount the economic crisis, but to upturn the international investments in Romanian infrastructure. JEL Classification: H54, H71, H72 Keywords: economic recovery, investments, local public administration

 

pag. 500	Specific Features in Accessing European Funding Authors:  Andreea Lorena RADU, Elena Alexandra CALDARARU, Maria DIMITRIU
	Abstract European Funds are the European Union financial instruments in order to assist Member States in reducing the existing disparities between regions and between countries, and for harmonization with the economic, social and cultural European standards. This paper intends to present some general characteristics applicable to the most important financing programs, and also to outline certain features of the main financing lines, referring to investment projects development and their implementation, based on the Applicant Guides analysis. The paper treats institutional, legal, financial, technical, social and environmental aspects and outlines proposals and recommendations to achieve a better EU funds absorption and also a higher success rate of initiated projects. In knowledge-based economy circumstances, training consultancy specialists, that represent the intellectual capital in this area, will ensure the professional management of the developing process, submission and ongoing competitive projects, and will help enhance the funds absorption at national level. Thus, the European support for investments in ensuring sustainable growth will help overcoming the difficulties encountered by our country, and will sustain the Romanian economy recovery. JEL Classification:  O16 Keywords: eligible costs, European funds, investment, knowledge economy, sustainable development

  

pag. 511	The Real Options Attached to an Investment Project Author:  Mihai-Cristian DINICA
	Abstract The real options capture the importance of the managerial team's role in creating value through investment projects. The investments in real assets have a set of options that managers can exercise during the period of the project to increase the value of the assets or to limit the eventual losses. This options have their own value. The traditional methods for investment project evaluatioan, based on discounted cash flows, have some major disadvantages: they assume the irreversibility of a decision, do not take into account the interactions between decisions in several periods and treat the investment as pasive. The evaluation using real options undertake this disadvantage. The paper shows the main types of real options, together with their elements and captures the impact of these options on the value of the investment. The main two models used to evaluate real options, the binomial model and Black-Scholes model, are explained and used to compute the value of real options attached to an investment project. JEL Classification: G12, G31 Keywords:: real options, investment valuation, investment project, managerial flexibility

 

pag. 519	Derivative Securities on Romanian Capital Market Authors:  Ramona Maria GOGONCEA, Maria CARACOTA DIMITRIU
	Abstract This study aimed to investigate whether the world wide agreed models of valuation of derivates may be properly applied to the Romanian capital market, obtaining reliable results for decision makers. The most common valuation models take into account market data such as, interest and exchange rates, volatilities and the price of the underlying instrument. The procedures for valuation must clearly define the nature of the market data to be taken into consideration (for example the zero-coupon curve for the valuation of swaps) and the independent reference base to be used (Reuters at a given time, bid/offer or mid price, broker). In order to be able to obtain the results, I based my study on a self-developed software which can calculate the price and characteristics for different types of derivatives securities once the primary data are filled in. I compared the results obatined usig the valuation models with the actual prices on the Romanian capital market. I expected that the results obtained to be more accurate as the parameters used in the calculation models properly reflect market data as at that date being as widely as possible.. These assumptions were only supported for certain value orientations. In conclusion, explanations for these results are given and limitations for this study are discussed. Also, suggestions for future research are presented in the final part of the article. JEL Classification: G24 Keywords::  derivatives, investments, risk management, valuation models

 

pag. 535	The Impact of Lean Six Sigma on the Overall Results of Companies Authors: Corina DUMITRESCU, Marilena DUMITRACHE
	Abstract Lean Six Sigma represents a management approach for driving innovating processes inside a company in order to achieve superior results. It involves a practical analysis based on facts, aiming the innovation and growth, not only the efficiency of processes. It is a long term process of gradual and continuous improvement. The application of Lean Six Sigma in companies led to attaining superior financial performance by addressing new needs, by differentiating the products and services or by adjusting the business lines to new processes. Quality is more than making things without errors. It is about making a product or service meet the individual perception of a customer about the quality or value. Therefore, in what regards Lean Six Sigma, the concern is not only to "do the things right" but also to "do the right things right". We focus on the impact of implementing the Lean Six Sigma approach on companies, seeking for what changes and benefits it brings. The key elements it aims at are achieving the best quality, the lowest cost, getting the shortest lead-time, stressing on waste elimination. The requirements of a company for its implementation and the strategy to obtain the maximum practical outcome are investigated. Furthermore, we conduct a comparison analysis with the other methods of the total quality management and see why Lean Six Sigma is a more desirable approach. JEL Classification: O31, P12, M11, L23, L25 Keywords: Lean Six Sigma, fact-based analysis, innovation, strategy, quality, gradual and continuous process

  

pag. 545	Risk Management in IT Governance Framework  Authors: Mirela GHEORGHE
	Abstract The concept of governance has an already old contour: the system by which business corporations are directed and controlled. The most praised principles regarding shareholder rights, transparency and board accountability now constitute the foundation for new tendencies evolved from such ground. Executive compensation, transparency and shareholder reporting are new issues attached to board responsibilities. Besides such almost negative approaches the board faces a more and more prominent role from risk management and IT governance perspective. Nowadays is generally acknowledged that the board is in charge for managing and controlling the risks to assets of the enterprises and business future. IT Governance has emerged as a support for corporate governance, as an important part of board's striving efforts to perform better in a competition environment. These responsibilities, risk management and IT Governance, remain within the framework of old concept of corporate governance and are fed from its substance. The interaction between these concepts is the core interest of this research. IT Governance is defined as procedures and policies established in order to assure that the IT system of an organization sustains its goals and strategies. The management of the organisations face a new challenge: structural redefinition of the IT component in order to create plus value and to minimize IT risks through an efficient management of all IT resources of the organisation. The evolution of the present IT environment is a natural process according to which business environment should adapt. JEL Classification: M15 Keywords: Corporate Governance, IT Governance, IT risk, Risk Management

 

pag. 553	Competition as an Effective Tool in Developing Social Marketing Programs: Driving Behavior Change through Online Activities Authors:  Corina SERBAN
	Abstract Nowadays, social marketing practices represent an important part of people's lives. Consumers' understanding of the need for change has become the top priority for social organizations worldwide. As a result, the number of social marketing programs has increased, making people reflect more on their behaviors and on the need to take action. Competition in social marketing can bring many benefits. The more programs initiated, the more people will start to involve in society's problems, hereby contributing to beneficial causes. However, social organizations are in the search for competitive advantages to differentiate them on the market. This paper aims to present the role of online communication in driving competitive advantage for social organizations. Using the structural equation model, the paper describes the relations between four characteristics of the online communication: credibility, attractiveness, persuasion and promotion and then presents the correlations between these variables and website competitiveness. The resulting model shows that owning a competitive advantage in social marketing can bring many advantages to both the non-profit organization and the consumer. Therefore, the online environment can be considered a good solution for better serving consumers' social needs. Its contribution is significant especially in programs for children and adolescents, since teenagers spend more time on the Internet than adults and are more open to using the online channels of communication. In conclusion, this article opens new opportunities for social marketers to address society's problems and supports the integration of the online communication tools in the competition strategy. JEL Classification:  C52, D11, L31, M31 Keywords: competition, social marketing program, online environment, non-profit organization, social marketing, consumer behaviour

  

pag. 563	Current Approaches Regarding the Knowledge Management Impact on SMEs Performance Author:  Ionela Carmen RIZEA (PIRNEA), Denisa Elena PARPANDEL, Alexandra Elena CALDARARU, Andreea Lorena RADU
	Abstract Managing knowledge is a critical capability for small to medium-sized enterprises (SMEs) to master because it helps them leverage their most critical resource. Organizational knowledge is the most salient resource at the disposal of SMEs in terms of availability, access, and depth. Successful SMEs are those who can leverage their knowledge in an effective and efficient manner, so as to make up for deficiencies in traditional resources, like land, labor, and capital. The purpose of this article is to identify the knowledge management impact on SMEs performance and to compare knowledge management in SMEs with knowledge management in large companies. The research discovered that SMEs do not manage knowledge the same way as larger organizations. JEL Classification: L25, M11 Keywords:: knowledge management, performance, SMEs