How knowledge assets lead to a sustainable competitive advantage: are organizational capabilities a missing link?

Karim Moustaghfir

Knowledge Management Research & Practice, 2009, vol. 7, issue 4, 339-355

Abstract: Even though knowledge assets have been widely recognized as the principal drivers of firm's competitive advantage, few are the frameworks that have explained how these strategic assets are transformed into value and how the value creation process occurs. Also there is a confusing terminology in the literature surrounding many concepts explaining the dynamics of value creation. By conducting a Systematic Review – an evidence-based methodology for theory building – this paper seeks to define a ‘common language’ of the concepts used to explain this phenomenon, and build the assumptions of a theoretical model that explains how knowledge assets, through learning mechanisms, are linked, renewed, and leveraged into socio-technical processes or organizational routines, that in turn form the basis of organizational capabilities. As they are socially constructed, these organizational capabilities, when leveraged into products and services, generate value and provide firms with a sustainable competitive advantage and long-term superior performance. The model should therefore serve as a theoretical contribution to the literature and it has a further potential benefit to begin an inquiry, for both theory building and management, about the nature of firm's knowledge assets and organizational capabilities, and the sources of sustainable competitive advantage. Some of these avenues are outlined in this paper.

Date: 2009
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DOI: 10.1057/kmrp.2009.26

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