Managing in the Knowledge Economy

Managing in the Knowledge Economy

Introduction

The paper attempts to explain the concept of managing in the knowledge economy. It to describe the role of information and knowledge in the theory general economic including the concept of innovation and entrepreneurship as the missing link that strengthens to transform knowledge into products, processes, services and new markets.

Discussion

Only in recent years or decades, the factor of capital is a more comprehensive, including not only physical capital but also the human capital that is intangible. Incorporate knowledge as a productive factor is not an easy task, because, compared with factor (physical) capital and labor, knowledge is not a scarce factor (Tsoukas & Shepherd, 2004, pp 120 129). It is also difficult to measure the amount of knowledge that is used in the production process, since knowledge is often intangible. However, by incorporating knowledge production function, not out of the mental model we discussed, still working with the same logic: Output = f (land, labor, capital, knowledge). That is, information or knowledge increases the production (Leibold, Probst & Gibbert, 2007, pp 276 - 281).

Economic Model and Knowledge Economy

Currently the most advanced economies barrier base their competitiveness in ever greater degree, in the generation and effective use of knowledge, but not always the case, if we analyze the theories existing economic, we can see that the classics such as Adam Smith and David Ricardo did not focus on the information or knowledge (Lengnick-Hall & Lengnick-Hall, 2003, pp 187 - 191). In the model of this classical production function, three known resources include the land, labor and capital. The production function describes the quantitative relationship between the input and the output of the production process. That is, the output is determined by the input, and input in this model is land, labor and capital (Junghagen & Linderoth, 2003, pp 78 - 91).

Economic development depends on the level of innovation and is done through the recombination of existing resources, development is not achieved only by increasing the productive factors exist, but have to use these factors differently (Hutchings & Mohannak, 2007, pp 187 - 201). That is, recombining existing resources is what makes the difference and the entrepreneur is the actor that introduces recombination new markets. The role of the entrepreneur with respect to knowledge is to introduce new knowledge to the market again from the economic point of view, not necessarily from the standpoint of scientific or technical (Mutch, 2008, pp 172 - 187).

That is, an idea or a new knowledge becomes an innovation when put into practice for the first time. In this model the new knowledge is generated by a recombination of existing knowledge, that is, an endogenously (Junghagen & Linderoth, 2003, pp 78 - 91). Evolutionary economics, a branch of economic theory that gained importance in recent years, focuses on what we know, highlighting the fact of imperfect information and uncertainty. What does this evolutionary concept? The evolution ofthis concept can be characterized generically as a process of self-transformation; the ...