Importance Of Knowledge Management In Organizational Performance

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Knowledge Management and Organizational Performance: A study of African Firms

INTRODUCTION
Knowledge is considered as source of competitive advantage in today’s knowledge economy. Firms are increasingly developing interests in knowledge management as result of the fact that empirical evidence shows that they result in competitive advantage. Knowledge management (KM) has become an important theme at many large business firms as managers realize that much of their firm’s value depends on the firm’s ability to create and manage knowledge. The competitive advantage firms get from knowledge results from the new products, services, processes and administrative procedures that they derive from knowledge management.
Innovation management is becoming
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The widely held view is that Knowledge management is the creating, storing, sharing and using of knowledge.

The modern society is moving towards knowledge society with a very fast pace. Salojarve et al 2005 have argued that knowledge is one of the ultimate sources of competitive edge for most of the companies.

Covso et al (2007) acknowledges that knowledge plays a crucial role in determining a forum innovation capability and enhancing working life quality of knowledge workers. Tacit knowledge, the types of knowledge which resides in humans and organizational routines has also been identified as means of sustainable competitive advantage.

Previous studies on Innovation and knowledge management has shown a positive relationship between Innovation and effective knowledge management. (Darroch & McNaughton, 2002; Nonaka & Takeuchi, 1995). Plessis(2007) has found that Knowledge management helps to flourish a knowledge-driven culture which fosters
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Jenny Darroch, Rod McNaughton, (2002) "Examining the link between knowledge management practices and types of innovation", Journal of Intellectual Capital, Vol. 3 Issue: 3, pp.210-222.

Marina du Plessis, (2007) "The role of knowledge management in innovation", Journal of Knowledge Management, Vol. 11 Issue: 4, pp.20-29.

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