Revision with unchanged content. In recent years the concepts of knowledge management and corporate culture have often been in the centre of research projects aiming at small and medium-sized enterprises (SMEs). Is there a relationship between both potential competitive advantages? If so, what are the consequences? The author Julia Ihlenfeld gives a historical overview of both concepts and then analyzes their interface illustrated by a case study of three small companies from different sectors. She argues that the greater the knowledge transferred from a boss to the subordinates, the stronger is the company’s tendency towards a collectivist approach rather than an individualist approach to its objectives, and the higher is the employees’ motivation to fulfil their tasks within the organisation. This hypothesis has been tested quantitatively by means of a Likert-style rating scale. The analysis of the primary data shows that – in the framework of this case study – the extent of knowledge transfer is positively correlated with employee motivation and collectivism. This book aims at decision makers in the field of human resources, attractors of knowledge management as well as managers and any company doing business in this world where corporate culture and knowledge management are decisive success factors.