Abstract

The purpose of this paper is to investigate the mediation effect of resource transformation capabilities on the relationship between knowledge management potential and quality management practices among SMEs. The study adopts a cross-sectional survey to collect data from 210 units used to carry out the mediation investigation. Correlations, regressions and a Med-Graph were used in the analysis. Both knowledge management potential and resource transformation capabilities were found to have direct effects on quality management practices and resource transformation capabilities partially mediate the relationship between knowledge management potential and quality management practices among SMEs. The study scope was limited to the supply side of the firm, which focused on organisational value chain activities and ignored the end users of the product, the customers. However, operations managers in SME sub-sector should consider resource transformation capabilities as an entry point for knowledge management potential to achieve sustainable quality management practices. The study engenders indicative insights in the SME subsector, a gateway for employment generation, sustainable household incomes and much sought Gross Domestic Product generation through knowledge management potential, resource transformation capabilities and quality management practices.