| Summary: | Knowledge Management (KM) program are profound among big organisations as it stimulates innovations. Innovation is crucial to ensure organisation's survival in this globalised world. Innovation is especially important for SMEs to remain competitive. Hence, the main aim of this study is to examine the readiness for innovation to the adoption of knowledge management among SMEs in Malaysia. This research adapted the scale developed by Chong and Choi (2005). A total of 146 questionnaires were returned from various sectors among SMEs in Malaysia. The multiple regression analysis results indicate that four out of the nine dimensions, namely organizational policy, a knowledge friendly culture, an information system culture and training have significant influence to innovation adoption readiness. The implications of the study contribute significantly to the theory of readiness to innovate. This study contributes to the literature and practitioners particularly to the small and medium companies as well as SME Corporation as a policy maker. Academician could use the findings as the basis for future research in a similar area. Further researches are also suggested. © 2013 IEEE.
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