Knowledge-Based Organizations: Building Blocks for Success

Abstract

Nowadays organizations are continuously faced with the new challenge of complexity and urgency in their activities. The changing environment is very unstable and the organizations should be able to conquer many different challenges of the available competitive era.There is a severe need for organizations to innovate and also improve their business processes. On the basis of the studies of researchers, they argue that much of the innovation created and accumulated in a firm is actually based on the organizational knowledge, including tacit and explicit knowledge. So, there is a strong necessity to manage the organizational knowledge. On the other hand, there is a paradigm shift between the resources of the organizations. Smart leaders understand that the main resource of the organization is not land, machines, equipments, and so on. They believe that knowledge is the main resource of an organization. In this way, smart leaders are moving towards knowledge based organizations. A knowledge based organization is an organization that counts on knowledge as the most important property, and believes that intellectual capital is the most valuable capital in the organization. In this paper, we introduce knowledge based organizations and the main elements through a semantic network. The semantic network shows the main factors and their relationships in a clear way. This paper can act as a roadmap for the leaders to understand the knowledge management discipline in the organizations.