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Knowledge Resources and Competitive Advantage

Keywords: knowledge , competitiveness , firm performance , knowledge-based theory

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Abstract:

The paper discusses some definitions of knowledge as a potential sourceof competitive advantage. It reviews the literature pertaining to the assessmentof knowledge assets. According to the resource-based view,which links the competitive advantage of organizations with resourcesand capabilities that are firm-specific, and difficult to imitate or substitute,a firm’s competitive advantage is built on a set of strategicallyrelevant resources (Barney 1991; Grant 1991; Peteraf 1993). When firmshave access to similar resources, it is those companies that are able tomaximize the utilization of those resources that attain a competitiveadvantage. Among various strategic resources and capabilities that helpdetermine the extent of competitive advantages, a pivotal role is oftenassigned to knowledge – as both a resource in itself and an integratingfactor that makes other resources and capabilities effective – especiallyin complex and dynamic environments.

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