Knowledge base Theory



Knowledge base Theory

Introduction

In this research paper the theory which we have selected to analyze is the knowledge base theory of the firm, this theory considers knowledge as one of the most essential and significant resource of the firm. However, its proponents argue that the resources related to this theory are highly difficult to imitate, and are socially very complex. The implementation of heterogeneous knowledge bases inside the firms serves as the major determinants for the sustainment of competitive advantage, along with a superior corporate performance. Knowledge is carried and embedded through a set of multiple entities which includes the organizational policies, routines, cultures, identities, employees, documents, and the systems. Although the knowledge based view of the firms recognize the immensely important role of knowledge inside the firms for achieving a competitive advantage over its competitors in the market. The proponents of the knowledge based argue that various resources based on perspective do not go far enough. The resource based perspective of the knowledge serves as a generic resource for the organization. Thus, it fails to distinguish between various types of capabilities which could be achieved by the organization through the implementation of enhanced knowledge based characteristics inside the organization. In modern business information technology can play an essential role in the creation of a knowledge based view of the firm. These information systems can be used to perform an extensive amount functions inside the organization, these systems can be used for the purpose of synthesizing, enhancing, and the expedition of large scale inter and intra firm operations of knowledge management inside the organizations (Levinson, 2007).

Discussion

In this paper we are going to develop a clear understanding regarding the concept of knowledge based theory inside the firms, the knowledge based theories currently implemented inside the organizations focus strictly ...