Knowledge is increasingly recognized as a critical resource for achieving competitive advantage, particularly in family small and medium-sized enterprises (SMEs), where resource constraints necessitate effective knowledge-sharing mechanisms, since there is a strong link between knowledge sharing and performance of businesses. This study explores the role of communities of practice (CoPs) in facilitating knowledge sharing within family SMEs, particularly involving both family and non-family members. CoPs, as informal groups that foster collaboration among individuals with shared interests, emerge as effective tools for transferring tacit and experiential knowledge. Adopting a social identity approach, the study conceptualizes family firms as complex environments where overlapping family and business identities shape CoPs' social dynamics. Drawing on multiple case studies of European family SMEs analized between 2014 and 2021, the research highlights how CoPs bridge knowledge-sharing gaps between family and non-family members. The findings reveal that CoPs enable robust social interactions and knowledge exchange irrespective of hierarchical positions, with community leaders playing pivotal roles in maintaining the group’s function as a knowledge-sharing mechanism. The study underscores the owning family's essential role in fostering alignment around innovative ideas and supporting the knowledge-acquisition process while also facilitating knowledge acquisition from external collaborators. Additionally, intergenerational participation within CoPs enhances innovation by integrating diverse skills, cultures, and goals of the stakeholders involved. The evidence emphasizes how CoPs empower decision-making processes, drive innovation, and support the development of new products and solutions. This research contributes to the literature on knowledge sharing in family firms, offering practical insights into the operationalization of CoPs and proposing directions for future studies to optimize knowledge management in SMEs.
