As companies of the 21th century are getting more and more globalized it is important for companies to stay ahead of their known and unknown competitors. Knowledge is a key factor for many companies. Knowledge cannot always be transmitted effectively between employees in companies. Large sized enterprises have adopted various information and communication technologies (ICT) in order to transmit knowledge fast and efficiently. Small and medium sized enterprises (SMEs) have according to previous research, not been able to apply ICT to their business as well as large sized firms

The purpose of this dissertation is to explore the gap, which exists between the usage of ICT and knowledge sharing in Swedish SMEs. In this dissertation, a deductive approach will be used as the theories are existent but are lacking empirical data.

The research was performed through qualitative studies, and the method that was used was case studies. The case studies were performed in four companies, which belong to the production/service industry, all the companies fall into the category of SME.

A model was constructed from existing theories made by Hendriks (2001) this model was analyzed and tested thoroughly. In the analysis of this dissertation, the model was developed as new factors were discovered to have an influence on what is affecting managerial perception of ICT and how it is being used for knowledge sharing. Our findings suggest that ICT use is affected by an influence, which exists in an external layer. This influence consists of legal requirements. Legal requirements seem to have a large impact on how ICT is being used in some companies, which are operating in a knowledge-based industry.