STRATEGY AND KNOWLEDGE CREATION

 A strategic framework 

Athough it has become a business truism that knowledge yields competitive advantage, nor all knowledge has strategic value. Therefore, it is imperative that managers use a practical framework to assess the role of knowledge in relation to strategy. In general, we suggest that the ultimate goal of all knowledge-related activity is to ensure above average industry profitability for a company, both in the short and long them. This is a bold proposition, however, since many advocates of the knowledge issue tiends to become the responsibility of human resources, information technology groups, or coporate, sometimes ir is only part of isolated knowledge-managemente initiatives located deep within variuos business units. In addition, most theorists with a few notable exceptions, pay little attention to an strategic view. 

As a consequence, top management rarely focuses on the strategic role of knowledge or the importance of knowledge-creations initiatives. One possible remedy is to reframe he way knowledge-creation is viewed by senior excutivesother company strategists. Rather than seeing it as an unknown quantity vaguely connected to creativity, absolutely necesary but impossible to objectify, they shpuld consider it an asset tied to especific actions and business results. The framework shown in the table, highlights the strategic role of knowledge and corresponding knwledge process. In the following sections, we examine each component separately.