Knowledge as One of the Sources of Sustainable Competitive Advantages

Abstract

The aim of this paper is to present some fundamental definitions of knowledge and to analyse some fundamental challenges regarding the knowledge capital of a firm. It reviews the literature pertaining to the assessment of knowledge assets. Companies have always been founded on knowledge. Veblen (1904) emphasises the importance of knowledge in companies. In 1959, Drucker defined knowledge as an importance source for the company. In 1977, Teece published the research on the transfer of knowledge and its influence on innovation. Solow (1956) and Arrow (1962) encouraged, through their learning curve theory, other economists to start considering knowledge as an economic resource. Nonaka and Takeuchi (1995), in their theory on knowledge-based organisations, further emphasised the importance of knowledge. Their thesis is that knowledge represents one of the sources of sustainable competitive advantages. Since knowledge assets are significantly important for the firm performance, this field is an exciting area for researchers and practitioners. Based on the studied literature, it can be concluded that the existing theoretical and applied research activities deal with the role of knowledge as a resource of sustainable competitive advantages for the firms.