Managing organizational knowledge as a strategic asset

TLDR

Knowledge is a valuable organizational resource that resides in employees and the organization as a whole, and, per the resource‑based view, strategic assets such as knowledge are key to sustaining competitive advantage. The paper demonstrates that organizational knowledge is a strategic asset by integrating RBV theory with knowledge characteristics and outlines practical steps for implementing knowledge‑management principles.

Abstract

Knowledge is a resource that is valuable to an organization’s ability to innovate and compete. It exists within the individual employees, and also in a composite sense within the organization. According to the resource‐based view of the firm (RBV), strategic assets are the critical determinants of an organization’s ability to maintain a sustainable competitive advantage. This paper will combine RBV theory with characteristics of knowledge to show that organizational knowledge is a strategic asset. Knowledge management is discussed frequently in the literature as a mechanism for capturing and disseminating the knowledge that exists within the organization. This paper will also explain practical considerations for implementation of knowledge management principles.