Knowledge Management In Achieving Competitive Advantage Essay

The usage of Knowledge Management ( KM ) has become progressively recognised as an built-in portion of an administration ‘s scheme to better concern public presentation, offering new challenges and chances and in increasing an administrations competitory viability ( Rincon and Kadi, 2004 ; Carrillo et Al, 2003 ) . As with any administration it is important that they achieve and maintain a competitory advantage over direct and indirect rivals, this can be accomplished with effectual KM ( Prahalad and Hamel, 1990 ) .

To guarantee success in today ‘s planetary, interrelated market the fast and efficient exchange of information is important. Seubert, Balaji and Makhija ( 2001 ) suggest that sustainable competitory advantage is no longer based on the physical assets of an administration ; alternatively it is related to the effectual routing of cognition in an administration.

There are a huge figure of KM tools that are available on the general market that can be used by administrations ; nevertheless each administration has its ain demands when covering with any KM based state of affairss. Any KM tool that is implemented must be effectual in commanding and interchanging cognition to specific sections and employees particularly when trying to accomplish and prolong a competitory advantage ( The Economist, 2005 ) .

It is indispensable that KM is non merely implemented but besides maintained in any administration as a failure in communicating within a concern may hold ruinous consequences. Issues such as this may do the competitory border of a concern being lost of rivals.

The purpose of this paper is to research a assortment of different facets to accomplish and prolong competitory advantage in an administration utilizing conducted research every bit good as current literature. At the terminal of this paper a decision will be made from the referenced research including an overview of the future way with respects to KM and competitory advantage.


Newman ( 1991 ) stated that “ Knowledge Management is the aggregation of procedures that govern the creative activity, airing, and use of cognition. He besides explains that in one signifier or another, cognition direction has been around for a really long clip ” .

KM is non every bit simple as utilising bundles that are available on the market as off the shelf solutions, whilst these solutions aim to help with KM in an administration as a whole they are rather merely an assistance to KM. Alternatively, KM is the apprehension of concern procedures and processs as a whole every bit good as the cognition that is used to guarantee the procedures function right ( Newman, 1991 ) .

Basically KM is focused upon concern information and information coupled with the potency of people ‘s accomplishments, competences, thoughts, intuitions, and motives ( Grey, 1996 ) .

Examples of Knowledge Management facets within an administration could be as follows:

Fully elaborate concern procedures and theoretical accounts.

Key nomenclature used within an administration.

The ability to place information that can be reused either within a specific concern section or throughout the concern as a whole.

Allow the work force of an administration to portion and communicate with one another sharing cognition.



With the survey being undertaken from February 2010 – April 2010 a assortment of different resources will be analysed and explored including Internet and written diaries and books. Due to the clip restraints on the undertaking besides factoring the clip demands for other University based assignments, primary research was impracticable and could non be conducted.

In order to derive a clear image of KM and its utilizations in accomplishing and prolonging a competitory advantage, resources from a assortment of different writers will be used every bit good as utilising resources looking at different positions of KM as a whole.



During the survey a assortment of different facets of Knowledge Management were researched and analysed in an effort to derive a thorough apprehension on how KM can non merely achieve but besides sustain a competitory advantage in an administration.


During the past two decennaries since Knowledge Management was established ( Nonaka, 1991 ) a huge figure of Knowledge Management models have been developed. Many of these developed models are designed for really specific intents and environments ( Heisig, 2009 ) .

There are three chief types of Knowledge Management model that have been established harmonizing to Rubenstein-Montano ( 2001 ) , these include:

Prescriptive Frameworks – these models aim to supply general counsel on types of Knowledge Management processs and protocols nevertheless do non supply specific inside informations on how to prosecute with these processs.

Descriptive Frameworks – purpose to depict Knowledge Management whilst placing specific processs and properties required in order for the Knowledge Management System to be successful.

Hybrid Frameworks – are a combination of both Prescriptive and Descriptive Frameworks ensuing in a well planned and besides practical based model ( Weber et Al, 2007 ) .

In order for a concern to be able to use a Knowledge Management Framework a good apprehension of the concern demands must be obtained prior to managing any KM solutions.

The concern demands and processes that must be obtained vary greatly between administrations ; nevertheless the same considerations must be made when sing implementing a KMS. Both silent and expressed cognition must be collected from employees within an administration every bit good as recovering any cognition from concern procedures that are undertaken ( Bray, 2007 ) .

By obtaining and analyzing the cognition from employees this may so be separated into farther specific classs including advanced and exploitatory cognition. By dividing information into these two classs this allows for advanced cognition to analysed and manipulated to supply an administration with new thoughts finally taking to a competitory market advantage ( Bray, 2007 ) .



This Knowledge Management Framework was developed by new wave der Spek and Spijkervet in 1997 in order to place the rhythm of cognition alterations during its lifecycle. The four parts to the lifecycle that were identified were the conceptual, contemplation, action and retrospect phases. The undermentioned phases are described as follows:

Conceptual – obtain an penetration into cognition resources that are used within an administration.

Reflection – an analysis of the cognition obtained during the conceptual phase.

Action – is taken in order to present / better cognition within an administration using the revised cognition processed during the contemplation phase.

Retrospect – this phase reanalyses an administration ‘s KMS in order to position and betterments that have been made every bit good as any countries that require farther betterment.

This model aims at placing any jobs that are faced within current and developing Knowledge Management Systems. By bettering the administration of cognition within an administration and taking any debatable cognition this ensures that all employees have the latest and most up to day of the month information ( Holsapple et al, 1999 ) .

By guaranting that all employees operate utilizing the latest information within an administration this assists with traveling the concern frontward without any hinderance every bit good as supplying its clients with the latest right information. This allows for a competitory border to be gained against market rivals.


This model was designed to supply an administration with a competitory advantage by Graham and Pizzo ( 1996 ) . This model divides the KM lifecycle into four phases, these are:

Identification – the ability to place and obtain a concern ‘s demands and its strategic drive force.

Establishment – one time a concern ‘s scheme and demands have been identified the cognition demands must be established dividing cognition within the administration into nucleus and interrelatedness cognition. The waies that cognition take throughout an administration between sections is traced with any amendments being recorded and analysed.

Application – with the freshly identified nucleus and relational cognition established, amendments can be made to the construction of a KMS as a whole in order to better efficiency, velocity and truth of the cognition being stored and used.

Monitoring – with a new optimised KMS available within an administration changeless monitoring and rebalancing should take topographic point to guarantee that there are no issues in cognition being transferred between forces and sections.

The purpose of this model is to supply the concern with a competitory advantage by guaranting that the velocity in which cognition can be accessed is fast and efficient every bit good guaranting a high truth of information ( Holsapple et al, 1999 ) . This model besides ensures that the way in which cognition takes within an administration as a whole is analysed to guarantee that this is besides optimised and accessible by the right people at the right clip.

Guaranting that cognition is available as and when required every bit good as being accurate aids an administration in deriving a competitory advantage in a market. By using the latest accurate information this ensures the concern can travel frontward successfully.

Besides by leting advanced cognition to be input into a KMS and supplying this cognition to the right country of a concern this enables senior figures within an administration to take thoughts and develop these into new solutions, once more supplying a competitory advantage in the market.

x.x COMPETITIVE Advantage




x.x Mentions

Bray, D. ( 2007 ) . Literature Review – Knowledge Management Research. Available: hypertext transfer protocol: // abstract_id=991169. Last accessed 17 Mar 2010.

Graham, A. B. , and Pizzo, V. G. ( 1996 ) “ A Question of Balance: Case Studies in Strategic Knowledge Management ” , European Management Journal, Vol. 14, No. 4, pp. 338-346.

Halawi L, Aronson J and McCarthy R ( 2005 ) “ Resource-Based View of Knowledge Management for Competitive Advantage ” The Electronic Journal of Knowledge Management Vol. 3, No. 2, pp. 75-86.

Heisig, P. ( 2009 ) . Harmonization of cognition direction – comparing 160 KM models around the Earth. Journal Of Knowledge Management. Vol. 13, No. 4, pp. 4-31.

Hofer-Alfeis, J. ( 2003 ) . “ Effective Integration of Knowledge Management into the Business Starts with a Top-down Knowledge Strategy. ” Journal of Universal Computer Science, Vol. 9, No. 7, pp. 719-728.

Holsapple, C. W. , and Joshi, K. D. ( 1999 ) “ Description and Analysis of Existing Knowledge Management Frameworks, ” Thirty-Second Annual Hawaii International Conference on System Sciences, Vol. 1, No. 32, pp. 1072-1085.

Newman, B. ( 1991 ) . An Open Discussion of Knowledge Management. Available: hypertext transfer protocol: // Last accessed 18 Apr 2010.

Nonaka, I. ( 1991 ) . The Knowledge-Creating Company. Available: hypertext transfer protocol: // Last accessed 07 Apr 2010.

Prahalad, C. K. , and Hamel, G. ( 1990 ) “ The Core Competence of the Corporation ” , Harvard Business Review, Vol. 68, No. 3, pp. 79-91.

Rubenstein-Montano, B. , Liebowitz, J. , Buchwalter, J. , McCaw, D. , Newman, B. , Rebeck, K. and The Knowledge Management Methodology Team ( 2001 ) , ”A systems believing model for cognition direction ” , Decision Support Systems, Vol. 31, pp. 5-16.

Seubert, E. , Balaji, Y. and Makhija, M. ( 2001 ) . “ The Knowledge Imperative ” . CIO Particular Advertising Supplement, March.

The Economist. ( 2005 ) . Pull offing Knowledge for competitory advantage. Economist Intelligence Unit. Vol. 1, No. 1, pp. 1-12.

new wave der Spek R. and Spijkervet A. Knowledge Management: Covering Intelligently with Knowledge. Knowledge Management And Its Intergrative Elementss, explosive detection systems ( Liebowitz, J. & A ; Wilcox, L. ) . New York: CRC Press, 1997.

Weber, F. , Krieghoff, R. , Katzung, A. ( 2007 ) , “ Wissensmanagement im Flug erobert ” , wissensmanagement, Vol. 8, No. 2007, pp. 10-13, English interlingual rendition available online: hypertext transfer protocol: // .