Â In the twenty first century landscape with all its uncertainty and dynamism, many firms are competing in a complex andÂ challenging environment which is being transformed by many factors ranging from globalization, technologicalÂ development and increasingly rapid diffusion of technology, to the development and use of knowledge (Hitt, Keats, andÂ DeMarie, 1998).Â As such, the foundation of organizational competitiveness has shifted from an emphasis on physical and tangibleÂ resources to knowledge (Wong and Aspinwall, 2005) and managing knowledge-based resources has become the key forÂ sustaining competitive advantage (CA) and superior performance (Grant, 1996b; Grover and Davenport, 2001; Jackson,Â Hitt, and DeNisi, 2003; Sharkie, 2003; and Teece, Pisano, and Shuen, 1997). To deal with this enhancedÂ dynamism and uncertainty of the business environment, one of the current strategic philosophies assisting firms to develop strategic capabilities is the knowledge management. It helps the organizations to systematically acquire,Â create, share, and use knowledge so as to develop, renew, and exploit theirÂ knowledge-based resources, thereby allowing them to be proactive and adaptable to externalÂ changes and attain competitive success.Â
Under the light of the previous researches, some researchersÂ (Davenport and Prusak, 1998; (Zack, 1999) (Alavi & Leidner, 2001) noted that competitive advantage isÂ realized only when the organization’s tracking methodsÂ and ways are efficient and distinctive and one of thoseÂ ways is through the knowledge management of the organizationÂ that have achieved competitive advantage not forÂ a specific period, but a long term.Â (Gupta & Mcdaniel, 2002) studied knowledge managementÂ and competitive advantage by examining theÂ vital link between the management of knowledge inÂ contemporary organizations and the development of aÂ sustainable competitive advantage. The used variablesÂ are conceptualized in terms of organizational effectiveness,Â efficiency, core competency, costs; knowledgeÂ acquirement, knowledge filtering, knowledge configuration,Â knowledge dissemination and knowledge application. (Goh, 2005) also identified that the field of knowledgeÂ management has emerged strongly as the next source ofÂ competitive advantage. (Ismail & Ong, 2008). Emphasized that firms canÂ achieve the sustainable competitive advantage by informationÂ technology facilities. He sees that even if a firmÂ owned the most sophisticated information technologyÂ facilities which are impossible for the competitors toÂ imitate or substitute, and for sure it is rare, but if there isÂ no knowledgeable personnel in the organization, or the knowledgeable personnel in the organization is not willingÂ to utilize these facilities, these facilities would not generateÂ any value to the organization. Obviously, to achieveÂ sustainable competitive advantage, knowledge, willingnessÂ to use operations and availability of facilities mustÂ co-exist.Â Hence, the question before the organizations is “how should theyÂ develop a knowledge management system to coordinateÂ people, technology and infra-structure to createÂ advantages competitiveness and sustainability inÂ business environments?
Knowledge is a different term from data and information. Data is simply raw facts, measurements etc. Information is organized or processed data that is timely and accurate. Knowledge as defined by (Tiwana, 2000) is the actionable (relevant) information available in the right format, at the right time,
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