Rapid development of technologies led to emergence of new opportunities for businesses such as effective management of knowledge resources for achieving organizational performance. The purpose of this paper was to determine whether the agencies are using KM systems available on the market, what are the reasons for their adoption, and explore the adequacy of implemented systems, and to define the characteristics of “ideal” KM systems for small organizations. In that sense, the main goal of the research was to explore the adoption degree of information technology for knowledge management in small tourist agencies with fewer than 20 employees. Based on survey among small tourist agencies conducted upon the sample of 68 usable responses from on-line questionnaire, this research outlines position and development trends in using information systems for knowledge management answering following questions: (a) Do agencies recognize the benefits of using knowledge management systems and in which segments of their business?: (b) What types of knowledge management systems they use and in which business segments?: (c) What are the reasons that agencies may not use knowledge management systems? In the research, the mathematical-statistical methods have been used, in order to analyse the attitude of the small Croatian tourist businesses toward usage of modern technologies to bust their business performances. The results also have indicated the reasons for low adoption of IT KM solutions in their everyday business operations. Based on the conducted analysis, a framework specification of an “ideal” KM system has been suggested.
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