Abstract: Knowledge management is a critical component of
competitive success in service organizations. Knowledge
management centers on creating new knowledge and utilizing
existing knowledge. While utilizing existing knowledge relates to
input and control and can lead to a reduction in costs; creating new
knowledge relates to output and growth and can lead to an increase in
revenue. Therefore managers must ensure that they can successfully
optimize the knowledge and talent in their organizations. To do this
they and must try to develop an environment that promotes the
generation, acquisition, transfer and use of valuable knowledge in
creative ways. However knowledge management is complex and
diverse. Research suggests that organizations in general and SMEs in
particular are finding it difficult to implement successful knowledge
management initiatives. Our research attempts to understand whether
organizations are adopting best practice initiatives in their
organizations. This paper presents findings from an exploratory study
of 139 SMEs operating in the tourism sector across Europe. The
goals of the survey is to assess the level of awareness of knowledge
and talent management strategies and methodologies and to
determine whether the responding companies implement best practice
knowledge management initiatives in their organizations Analysis of
the findings from the study are presented and discussed.