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Harnessing Knowledge Power for Competitive Advantage
Abstract
A great many organizations rely upon advancing Information Technology (IT) in their quests for competitive advantage. The problem is that as long as competitive advantage is based on IT and like resources that are obtainable or substitutable by competing organizations, it is likely to be ephemeral at best. Alternatively, competitive advantage enabled by tacit knowledge is comparatively much more sustainable, but such knowledge tends to be sticky and does not flow well through the organization. Hence, the power of tacit knowledge is great in terms of enabling and particularly sustaining competitive advantage, but the corresponding dynamics can make it difficult to capitalize upon effectively. This chapter focuses specifically on how the power of dynamic knowledge (i.e., knowledge flows) can be harnessed for competitive advantage. The authors first examine in some detail how different kinds of knowledge and other organizational resources enable competitive advantage. They then discuss the dynamics of knowledge, looking in particular at how it flows through the organization. The chapter concludes with five key insights for use and application.
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