There has been a transformation from an era of information scarcity to information surplus, so the key global pressures on management are knowledge identification, creation and dissemination. Development of Knowledge Management (KM) is represented as one of the most significant management movements in such an environment. KM has significantly benefited from Information Technology (IT). However, the extant literature has little practical support for this statement. Based on a review of literature, this paper attempts to develop an instrument and test the conceptual model linking KM and technology, using the Structural Equation Modeling (SEM) technique. Primary data was collected from three SMEs of north India—Software, Pharmaceuticals and Textile industries. The study model confirmed a positive relationship between IT and KM practices in the selected SMEs.

Knowledge Management (KM) and Information Technology (IT) are becoming inextricably interwoven. The developments in these two fields are reinforcing each other. IT is an essential consideration for any organization wishing to manage its knowledge assets. It changes how organizations develop, trade, compete and interact with other organizations and support the constantly evolving knowledge practices. It provides capabilities to improve decision-making skills of employees and support the transformation of individual information into organizational knowledge (Karacapilidis et al., 2006). An effective technical infrastructure with appropriate searching, abstracting and indexing processes affect knowledge reuse (Behboudi, 2006).

Many IT tools are available to achieve the aim of KM. These tools help in capturing knowledge and expertise created by knowledge workers and making it available to a larger community. The three types of tools used in KM are: (1) Knowledge repositories, which provide document and information databases, search engines, and intelligent agents; (2) Expert directories, such as yellow pages and knowledge maps; and (3) Collaborative tools, such as groupware, e-mail, listserv, newsgroups, chat, and conferencing (Bernard, 2006). KM portal, Internet, Intranets, video-conferencing, document management systems, bulletin boards, shared databases, electronic mail systems, artificial intelligence and knowledge maps are some of the tools used in KM process. These tools create a platform for knowledge contribution, sharing and reusing for the employees of the organization. The important knowledge gaps can be identified and promoted with the help of these tools. It also helps the employees to get involved in creating knowledge for business continuity.

Knowledge Management Journal, Information Technology (IT), Knowledge Management Practices, Structural Equation Modeling (SEM), Knowledge Management (KM), Information Technology (IT), KM portal, Internet, Intranets, video-conferencing, document management systems, bulletin boards, shared databases, electronic mail systems.