Developing A Sustainable Competitive Advantage

1443 Words Apr 30th, 2016 6 Pages
‎1.0 Introduction‎
The rapidly changing and highly demanding business environment in the contemporary economy has imposed challenges on organizations as a reflection of the intense competition ‎that shapes business marketplaces globally and at the domestic levels.‎
Omotayo (2015) argued that the consequence of globalization, and the fast information transfer, is the emergence of knowledge-based economies where significance is placed upon effective management of human capital to assure that workers manage to continue creating the right value for the economy.
At the present time, organizations do not compete merely on the grounds of financial resources and tangible assets, rather knowledge is the new competitive advantage in business. According to Omotayo (2015), there is popular saying that knowledge is power. depending on this claim, it can be said that knowledge management is the key to power.
In this context, knowledge management (KM) has become a pivotal point for research and studies that seek to devise approaches to help organizations acquiring a sustainable competitive advantage (Gaffoor and Cloette, 2010). From their point of view, Davenport and Prusak (1998:47) define knowledge management as “the process of identifying, managing and leveraging individual and collective knowledge to support the firm becoming more competitive”. Nonaka (1991), Tiwana (2008), Lew Platt (2010) and Ron Young (2010) define knowledge management ‎ as ‘’an established management methodology…
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