To date, organizational knowledge capabilities for implementing knowledge management in small and medium enterprises (SMEs) have not been analytically examined. Previous studies have observed such capabilities from large businesses' standpoint and have not measured the organizational knowledge capabilities' requirements of SMEs. Secondly, there is lack of such studies in developing economies. The present study aims to bridge this gap and investigate the organizational knowledge capabilities required for implementing KMS successfully in SMEs' sectors, specifically in developing economies. A set of 7 organizational knowledge management capabilities was developed, which is thought to be prerequisite for KMS success in SMEs. The theoretical significance of these capabilities was discussed and the hypotheses were also empirically tested. Generally, the results obtained from the empirical evaluation were positive, indicating the significance of the proposed set of organizational knowledge management capabilities. The study is a value addition in the field of knowledge management in Pakistan's context.
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