Knowledge Management A Competitive Advantage Business Essay

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 In the twenty first century landscape with all its uncertainty and dynamism, many firms are competing in a complex and challenging environment which is being transformed by many factors ranging from globalization, technological development and increasingly rapid diffusion of technology, to the development and use of knowledge (Hitt, Keats, and DeMarie, 1998). As such, the foundation of organizational competitiveness has shifted from an emphasis on physical and tangible resources to knowledge (Wong and Aspinwall, 2005) and managing knowledge-based resources has become the key for sustaining competitive advantage (CA) and superior performance (Grant, 1996b; Grover and Davenport, 2001; Jackson, Hitt, and DeNisi, 2003; Sharkie, 2003; and Teece, Pisano, and Shuen, 1997). To deal with this enhanced 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, create, share, and use knowledge so as to develop, renew, and exploit their knowledge-based resources, thereby allowing them to be proactive and adaptable to external changes and attain competitive success.Â

Review literature:-

Under the light of the previous researches, some researchers (Davenport and Prusak, 1998; (Zack, 1999) (Alavi & Leidner, 2001) noted that competitive advantage is realized only when the organization’s tracking methods and ways are efficient and distinctive and one of those ways is through the knowledge management of the organization that have achieved competitive advantage not for a specific period, but a long term. (Gupta & Mcdaniel, 2002) studied knowledge management and competitive advantage by examining the vital link between the management of knowledge in contemporary organizations and the development of a sustainable competitive advantage. The used variables are conceptualized in terms of organizational effectiveness, efficiency, core competency, costs; knowledge acquirement, knowledge filtering, knowledge configuration, knowledge dissemination and knowledge application. (Goh, 2005) also identified that the field of knowledge management has emerged strongly as the next source of competitive advantage. (Ismail & Ong, 2008). Emphasized that firms can achieve the sustainable competitive advantage by information technology facilities. He sees that even if a firm owned the most sophisticated information technology facilities which are impossible for the competitors to imitate or substitute, and for sure it is rare, but if there is no knowledgeable personnel in the organization, or the knowledgeable personnel in the organization is not willing to utilize these facilities, these facilities would not generate any value to the organization. Obviously, to achieve sustainable competitive advantage, knowledge, willingness to use operations and availability of facilities must co-exist. Hence, the question before the organizations is “how should they develop a knowledge management system to coordinate people, technology and infra-structure to create advantages competitiveness and sustainability in 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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