How Does Knowledge Management Influence Innovation and Competitiveness?

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How does knowledge management influence innovation and competitiveness? The Authors
Alberto Carneiro, Alberto Carneiro is Assistant Professor in the Polytechnic College at the University of Lisbon, Portugal. Abstract
Is concerned with human value management, examines the relationships between organizations’ competitiveness, innovation advancements, and knowledge management and presents a set of considerations regarding how these relationships affect strategic management and the formulation of competitive strategies. By considering how knowledge development is related with personal characteristics and personal development, this study review attempts to provide useful insights on the linkages between innovation and competitiveness. These considerations point out the importance of knowledge development and the role of knowledge management in order to assure competitiveness. This work proposes also a conceptual model, with special focus on the relationships between knowledge management, competitiveness, and innovation. The major factors are presented and directions for future research are suggested according to the proposed model. Introduction

Management is increasingly aware that knowledge resources are essential to the development of their organizations. Nowadays, the knowledge and the information technology (IT) are critical success factors for strategic formulation. Critical success factors refer to those managerial and organizational constructs that need to be effectively addressed in order to further the likelihood of implementation success. Since industry attractiveness depends on those factors, strategies and their implementation should be supported by a set of informational data and a knowledge development process. Knowledge is becoming progressively more useful because management is taking into account the value of creativity, which enables the transformation of one form of knowledge to the next. The perception of the existing relationships among several systems elements leads to new interpretations and this means another knowledge level where a new perceived value is generated. This relationship indicates that the innovation highway depends on the knowledge evolution. On the other hand, all the technologies that are present in the activities of the chain value have to be articulated and assisted by an efficient knowledge level. Some of the knowledge involved in the use and improvement of technologies can be written down in detail in procedures manuals and use instructions. Others are tacitly transmitted and learned through practical knowledge. Moreover, the success of technological modifications needs to be supported by more clarified and enhanced knowledge. With but few exceptions, most firms have had difficulty in developing a viable strategic knowledge system. There are manifold reasons for this, but certainly a major one is the omnibus nature of the sources required. Knowledge may flow into the organization in a continuous but unsystematic manner, probably because the amount of information processing resources varies by level of management activity. The lack of specific system objectives inevitably led to a data bank of enormous magnitude. It is necessary to consider the structure of such a system and to implement it, in accordance with the organizational functions that use information to realize activities and to decide. Considering the need to increase managers’ concerns, this work sustains that a set of factors is dramatically useful to justify the relationship between innovation process, competitive advancements and a strategic knowledge management (KM). First, it presents a brief review of the relevant literature on the role of knowledge in the management processes. Second, and in a modelization perspective, we will discuss the relationships among these factors to suggest a better way to deal with human value, to improve KM, and to attain a higher level of competencies. Finally, this article discusses...
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