Abstract

To be competitive in current knowledge economy, startup companies should effectively use available knowledge to implement their development strategies. Consequently, it is necessary to identify which knowledge management (KM) practices are used by startup companies. This paper aims to identify KM practices used to overcome critical factors of startups’ development in Brazil. It will be discussed the relation between the critical factors of startup development and the KM practices used. Interviews were conducted with startups established in business incubators in the southern region of Brazil. Results demonstrated that the main KM practices used to overcome critical factors of startup development – Opportunity Recognition, Entrepreneurial Commitment, Credibility and Sustainability – are related to company’s internal knowledge. Internal knowledge is a company asset, which includes not only R&D activities but also its actions and routines. An important remark was that even though startups are not aware of KM practices, they have organized routines and standards aligned with current KM theories.

Introduction

The development of innovative products and processes has driven the development of companies through the years. Big and small companies have applied different practices to keep competitive in the market, creating research and development routines to guide incremental or radical renovation of their portfolio (Parrilli & Elola, 2012). This renovation process is usually developed through innovative activities, driving companies ahead of their competitors since they will be pioneers in launching new products or services, obtaining improvements in both productivity and profit (Tsai & Li, 2007).