Abstract
The investigations on the link between knowledge management and organizational performance have yielded conclusive results. However, the effects of knowledge management practices in the context of the SME sector needs more attention especially for the case of Pakistan. This study has analyzed the effects of knowledge management practices on performance of the SME sector for the case of Pakistan. The primary data has been collected from the SME sector of various cities of Pakistan. Structural equation modeling (SEM) technique has been used to analyze the data and interpret the results. The study found significant effects of knowledge management practices on organizational innovativeness and performance.