Abstract

The importance of knowledge as a key organizational resource contributing to competitive advantage is undisputed in research and in practice. Yet, the way in which such knowledge is created in organizations is relatively poorly understood. This paper develops a theoretical model elucidating how organizations create knowledge for the purpose of gaining competitive advantage. I have cast this investigation within the context of organizational networks, arguing that knowledge creation indeed occurs in such networked structures in organizations. Particular knowledge resources that are competitively advantageous to the firm change, as the basis of competition itself changes over the organization’s life. Therefore, I have distinguished between two different competitive situations faced by organizations- relatively stable periods of competition, and turbulent periods of radical change. I have compared and contrasted the antecedents and processes of organizational knowledge creation under these two competitive modes, highlighting the differential role of information technology in the process.

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