In the current climate, preparing for change is an issue for companies large and small. For a Small to Medium Sized Enterprises (SMEs) where resources are significantly limited, it is imperative that efficient practices are in place to leverage the wealth of knowledge available both inside and outside the firm. It is vital that these organisations are swift and flexible enough to survive in this dynamic environment, this includes developing the ability to take stock of the sources and types of knowledge that are valuable to them and understanding how it is accessed and integrated into the firm's body of knowledge. Considering the economic turbulence, never has it been more important to focus on the knowledge capabilities of software SMEs, as it is on the back of these types of small high-tech organisations that innovation, growth and potential recovery will be achieved. Using a qualitative analysis approach in four Irish software SMEs, this study identifies sources of knowledge and occurrences of knowledge activities (KAs) as a means of understanding the firm's approach to knowledge management (KM) and how this may be leveraged therefore providing them with the flexibility to deal with environmental uncertainty.