1 The infuence of Knowledge Management on E-Business Adoption in Saudi SMEs THE INFLUENCE OF KNOWLEDGE MANAGEMENT ON E-BUSINESS ADOPTION IN SAUDI SMES Naief G Azyabi Faculty of Business Administration Jazan University, Saudi Arabia Received date: 2 June 2018 Accepted date: 31 July 2018 ABSTRACT Due to lack of research on SMEs in Saudi Arabia in general and in Knowledge management feld in specifc, this research contributes to both knowledge management and e-business literature. It further empirically validate the model of e-business adoption taking into consideration the infuence that knowledge management has. The main purpose of this research is to evaluate knowledge management infuence on e-business adoption among Saudi Arabian SMEs in their supply chain management. The study utilized quantitative approach to collect and analyse data. Questionnaires were prepared and distributed to 128 SMEs operating within the Saudi Arabian country. The results of the current study showed that knowledge acquisition is the only knowledge management process that signifcantly infuencing the adoption of e-business among the SMEs in Saudi Arabia. Both knowledge dissemination and knowledge application were found to have no signifcant effect on the adoption of e-business. Management practices for both the SMEs should put many efforts to ensure that knowledge management enhancement especially when organisations want to adopt e-business. Keywords: E-business, knowledge management, adoption, SMEs, Saudi Arabia INTRODUCTION