Aligning tacit knowledge and competitive advantage: a resource-based view

Abstract

This paper investigates the role of tacit knowledge in establishing competitive advantage using the resource-based view (RBV) theory. A framework for studying tacit knowledge, organisational performance, value creation and competitive advantage is introduced and used to analyse the oil and gas industry. The findings show that value creation and improved organisational performance play a mediating role between tacit knowledge and competitive advantage. On the one hand, the findings suggest an indirect relationship between tacit knowledge and competitive advantage, and it was instrumental when directed at creating avenues for improving organisational performance and innovations, i.e., value creation, which places an organisation in a competitive advantage position. On the other hand, organisational performance, which has a direct relationship with value creation has an indirect relationship with a competitive advantage.