A thermodynamic approach to knowledge in rural companies

Abstract

Purpose - Practical wisdom involves making sound decisions in complex, uncertain situations by addressing emotions, moral virtues and context-rational knowledge. This issue is crucial for SMEs when there is a sudden increase in the dynamics of emotions or moral virtues, particularly in rural companies. Rural managers need practical wisdom (PW) to effectively integrate rational, emotional and spiritual knowledge in making decisions with a sense of purpose, adaptability and hope. Design/methodology/approach - This paper adopts concepts derived from the knowledge management (KM) field to shed light on two research questions: Is PW different from an individual's point of view compared to a collective one? How can PW be achieved from a collective standpoint? Examples from the recent history of Gran Canaria are mentioned, and valuable lessons for rural companies are also derived from three companies. Findings - This paper contributes to raising the managers' awareness of practical wisdom by exploring how SMEs, particularly in rural contexts, can use knowledge that is deeply intertwined with values, emotions and community considerations, thus enriching the thermodynamics model of KM. Originality/value - No previous studies have analysed the connection between knowledge and PW of rural companies. Therefore, this paper not only strengthens interpersonal relationships within the rural business community but also encourages the exchange of valuable experiences. By striking the right balance between emotional, ethical and rational capacities, rural businesses can more effectively leverage shared knowledge, creating a support network that fosters resilience and sustainable growth.