Knowledge creation and its place in the development of sustainable competitive advantage

Organizations operate in all areas through people and it is their contribution which determines success and it is their skills and knowledge which need to be cultivated and then leveraged to create competitive advantage. Sustainability of this competitive advantage comes from the development of tightly coordinated and complementary activities and directed towards producing a strategy of differentiation and making a unique offering to customers. A consistency in strategic direction is essential and this will necessitate the exercise of choice to develop a unique strategy. The development of sustainable competitive advantage is a vital management function and an important requirement is the nurturing of a knowledge creating environment to enable the organization to exploit and develop resources better than rivals and create sufficient knowledge to address the industry’s future success factors.