Knowledge generation and sharing in supply chains is viewed as an essential source of competitive advantage. The real added value will depend on the capabilities of the people involved. These agents should be adaptable and innovative to provide solutions to the specific circumstances of each specific project. This paper analyzes the present-day situation of supply chains of small and medium enterprises (SMEs). A new organizational form should be developed to make the creation, transfer and sharing of knowledge possible in a supply chain of SMEs. In this context, the authors propose a network functioning model.

The objective of any company is to survive indefinitely. To achieve this goal, a company must be able to gain and maintain a competitive advantage that is sustainable in the long term. It cannot base its ability to be different on its assets alone, since the ever greater complexity of these assets means that virtually all companies in a particular sector possess them.

It is for this reason that competitive advantage appears through knowing how to make use of these assets rather than by simply possessing them. It seems, therefore, that a determining factor is the need to manage these intangibles in the same way the company's other assets are managed. This is the context in which the concept of knowledge management comes into picture.

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