Knowledge-based theory of the firm
The knowledge-based theory of the firm considers
knowledgeas the most strategically significant resource of a . Its proponents argue that because knowledge-based resources are usually difficult to imitate and socially complex, heterogeneous knowledge bases and capabilities among firms are the major determinants of sustained competitive advantageand superior corporate performance.
This knowledge is embedded and carried through multiple entities including organizational culture and identity, policies, routines, documents, systems, and employees. Originating from the
strategic managementliterature, this perspective builds upon and extends the resource-based view of the firm (RBV) initially promoted by Penrose(1959) and later expanded by others (Wernerfelt 1984, Barney 1991, Conner 1991).
Although the resource-based view of the firm recognizes the important role of knowledge in firms that achieve a competitive advantage, proponents of the knowledge-based view argue that the resource-based perspective does not go far enough. Specifically, the RBV treats knowledge as a generic resource, rather than having special characteristics. It therefore does not distinguish between different types of knowledge-based capabilities.
Information technologiescan play an important role in the knowledge-based view of the firm in that information systems can be used to synthesize, enhance, and expedite large-scale intra- and inter-firm knowledge management (Alavi and Leidner 2001).
*Alavi, M., and Leidner, D.E. “Review: Knowledge Management and Knowledge Management Systems,” MIS Quarterly (25:1), March 2001, pp. 107-136.
*Conner, K.R. “A Historical Comparison of the Resource-Based Theory and Five Schools of Thought Within Industrial Organization Economics: Do We Have a New Theory of the Firm?,” Journal of Management (17:1), 1991, pp. 121-154.
*Grant, R.M. “Toward a Knowledge-Based Theory of the Firm,” Strategic Management Journal (17), Winter Special Issue, 1996, pp. 109-122.
*Grant, R.M. “Prospering in Dynamically-Competitive Environments: Organizational Capability as Knowledge Integration,” Organization Science (7:4), 1996, pp. 375-387.
*Kogut, B., and Zander, U. “Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology,” Organization Science (3:3), 1992, pp. 383-397.
*Kogut, B. “The Network as Knowledge: Generative Rules and the Emergence of Structure,” Strategic Management Journal (21), 2000, pp. 405-425.
*Lee, S., and Choi, B. "Knowledge Management Enablers, Processes, and Organizational Performance: An Integrative View and Empirical Examination," Journal of Management Information Systems (20:1), 2003, pp. 179-228.
*Nickerson, J. and Zenger, T. “A Knowledge-based Theory of Governance Choice: The Problem Solving Approach,” Organization Science, (15:6) 2004, 617-632.
*Nonaka, I., and Takeuchi, H. The Knowledge-Creating Company: How Japanese Companies Create the Dynamics of Innovation, Oxford University Press, New York, 1995.
*Spender, J.C. “Making Knowledge the Basis of a Dynamic Theory of the Firm,” Strategic Management Journal (17), Special Issues, 1996, pp. 45-62.
*Tiwana, A., and E. McLean “Expertise Integration and Creativity in Information Systems Development,” Journal of Management Information Systems, 22(1), 2005, pp. 13-43.
Wikimedia Foundation. 2010.
Look at other dictionaries:
Theory of the firm — The theory of the firm consists of a number of economic theories that describe the nature of the firm, company, or corporation, including its existence, behavior, structure, and relationship to the market. Contents 1 Overview 2 Background … Wikipedia
Knowledge Management — (KM) comprises a range of practices used by organisations to identify, create, represent, distribute and enable adoption of what it knows, and how it knows it. It has been an established discipline since 1995 [Stankosky, 2005] with a body of… … Wikipedia
Knowledge transfer — in the fields of organizational development and organizational learning is the practical problem of transferring knowledge from one part of the organization to another (or all other) parts of the organization. Like Knowledge Management, Knowledge … Wikipedia
The Black Swan (Taleb book) — The Black Swan … Wikipedia
The Structure of Scientific Revolutions — (1962), by Thomas Kuhn, is an analysis of the history of science. Its publication was a landmark event in the sociology of knowledge, and popularized the terms paradigm and paradigm shift .HistoryThe work was first published as a monograph in the … Wikipedia
The Neurosciences Institute — is a non profit, scientific research organization dedicated to learning about the brain. Under the leadership of Nobel Laureate Gerald M. Edelman, M.D., Ph.D., the Institute focuses its theoretical and experimental work on the principles… … Wikipedia
Knowledge entrepreneurship — describes the ability to recognize or create an opportunity and take action aimed at realizing the innovative knowledge practice or product. Knowledge entrepreneurship is different from ‘traditional’ economic entrepreneurship in that it does not… … Wikipedia
Knowledge worker — Knowledge workers in today s workforce are individuals who are valued for their ability to act and communicate with knowledge within a specific subject area. They will often advance the overall understanding of that subject through focused… … Wikipedia
The Dividend Decision — is a decision made by the directors of a company. It relates to the amount and timing of any cash payments made to the company s stockholders. The decision is an important one for the firm as it may influence its capital structure and stock price … Wikipedia
The Blessed Trinity — The Blessed Trinity † Catholic Encyclopedia ► The Blessed Trinity This article is divided as follows: I. Dogma of the Trinity; II. Proof of the Doctrine from Scripture; III. Proof of the Doctrine from Tradition;… … Catholic encyclopedia