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Knowledge management has become a source of business competitiveness, raising questions about its conditions for success, in particular for SMEs whose resources are weaker than those of large companies. This research examines the issue by exploring the knowledge management practices of Tunisian SMEs. Our findings allow us to identify four major results. First, Tunisian SMEs that use codified knowledge, based on formal messages, and written and standardized procedures have a more efficient innovation process than other firms. Then, that cooperation seems to be the best solution to manage their knowledge since it allows them to unite several strategic resources, coming from several companies, knowledge constituting the main resource. The results also show that most of the Tunisian companies interviewed adopt a knowledge management approach as a way to systematically manage cognitive processes to capitalize on, share, and create new knowledge. However, the lack of leadership in communicating the benefits associated with sharing practices is the main organizational barrier to knowledge sharing. Finally, our research shows that knowledge management is a mediating variable that plays an indirect role in strengthening the direct relationship between the organizational dimension and the competitiveness of the firm.