Leveraging Knowledge Processes for Building Higher-Order Dynamic CapabilitiesAn Empirical Evidence from It Sector in India

Abstract

The study aims to integrate the two prominent Views of Strategic Management namely Dynamic Capability View and Knowledge-Based View and posit a Knowledge-Based View to the capabilities of an organization by establishing a relationship between Knowledge Management Processes and Higher-Order Dynamic Capabilities. The paper makes an attempt to supplement the strategically oriented concept of dynamic capabilities with Knowledge Processes of a firm by suggesting that Knowledge Processes can be leveraged to build advanced capabilities like Adaptability, Absorptiveness and Innovativeness. It was concluded that the three Knowledge Processes namely Knowledge Acquisition, Knowledge Conversion and Knowledge Application are critical for the development of Higher-Order Dynamic Capabilities of a firm. The research also focuses on evaluating organizations in the IT sector operating in India in light of the knowledgebased view of capabilities of dynamism and suggests strategies for enhancing the knowledge orientation and thus improving the capabilities of organizations.