Managing knowledge for innovation in small computer service companies

The computer service sector is a highly knowledge-intensive industry based on qualified professionals and specialised expertise. The primary value added-activity of those companies consists of acquiring, creating, accumulating and disseminating knowledge with the purpose to develop customised solutions for satisfying the individual requirements of client firms. For this reason they can be considered Knowledge-Intensive Business Services (KIBS) and investigated accordingly. In the light of this, the paper examines and discusses how cognitive processes are carried out in the case of small computer services companies. It is based on an empirical investigation involving 21 societies located in North-East Italy. The paper describes the innovation practices and the knowledge management approaches used by those companies, and analyses the relevant issues. The study provides insights into the ways innovation and knowledge are treated by those firms. Secondly, it investigates the processes of knowledge transfer mediated by computer services companies, which enable the transfer of innovation from the global sources (R&D laboratories, multinationals, etc.) to the local users.