Small and medium-sized enterprises (SMEs) have commonly been perceived as a main force for sustained economic growth, development and job creation in developing countries. From a social viewpoint, SMEs secure a large and expanding segment of the population. Various research is available in the knowledge management literature investigating the effect of knowledge management on the business process. In particular, little empirical research has been found to determine the implementation of knowledge management practices in the context of developing countries and small businesses. This dissertation aimed to fill the perceived gaps by investigating the relationship between knowledge management and organizational performance in the context of Egyptian SMEs. Knowledge management processes were conceptualized as three-dimensional constructs: knowledge acquisition, knowledge sharing and knowledge application. While organizational performance was divided into two dimensions namely, non-financial performance and financial performance. The researcher chose non-financial performance which was conceptualized as three-dimensional constructs: innovativeness, competitive advantage, customer satisfaction.