Abstract
The competitiveness of small and medium enterprises depends on the quality of knowledge they apply to their business processes. Knowledge management processes are part of the organization business processes. These processes are essential or the precondition for effective knowledge management. Knowledge management processes comprised of knowledge acquisition, conversion, application, and protection. These processes require turning personal knowledge into corporate knowledge that can be widely shared throughout an organization and appropriately applied. It is a conscious strategy of getting the right knowledge to the right people at the right time and helping people share and put information into action to improve organizational performance. There are very limited empirical studies on knowledge management processes in small and medium enterprises particularly inMalaysia. In order to reduce the research gap, this study examines how small and medium enterprises apply knowledge management processes in their daily business activities and analyze the relationship between knowledge management processes and organizational performance. With an effective knowledge management processes, small and medium enterprises should be able to come up with innovative products and services to ensure their competitiveness and sustainability of performance.