Knowledge Management and Innovation in Indian small scale industries: A System Dynamics Approach

The small-scale industries (SSI) sector plays a vital role in the growth of the Indian economy. It contributes almost 40% of the gross industrial value added in the Indian economy. This sector creates largest employment opportunities for the Indian population, and is second to the agriculture sector. Though, there is a huge potential for the growth of SSI in India, the problems faced by them are in manifold. One of them is huge employee turnover. Employees don't tend to stay in the organization primarily due to the salary and remuneration factor. This has led them to embrace Knowledge Management (KM), but in its crude way as implementation of KM is it is capital intensive. This paper studies the practice of SECI model in SSI and simulates the same using system dynamics