Competition from corporate, peers as well as global, small and medium enterprise (SMEs) are major challenges to retain skilled manpower and customer base in information technology (IT) based service industry. Employee attrition has reduced operational efficiency and customer dissatisfaction in SMEs. Although, SMEs adopt different process to address these issues, they found knowledge management (KM) as the best option. The implementation of KM lies within organisation culture and people factors. The study aimed to examine the relationship of organisational culture and people factors with KM process. It was conducted in an IT service provider company that has implemented KM since five years. Descriptive analysis, correlational analysis and structural equation modelling-using SmartPLS were used to analyse data. The results emphasised that organisations' have to give importance to build culture fostering shared vision and collaboration. Moreover trust is needed among employees is needed to promote the activities of KM process. © 2019 Inderscience Enterprises Ltd.