Abstract for: The Impact of Firm Knowledge Strategy on its Competitive Knowledge: A System Dynamics Approach
Recent movements towards a 'knowledge-based' view of firm have emphasized the importance of knowledge in enabling the firm to gain competitive advantage. Different dimensions of knowledge are explicated in the knowledge management literature such as explicit vs. tacit knowledge, internal vs. external knowledge, etc. Based on SECI model, firms create knowledge through social interaction between tacit and explicit knowledge. It is important for them to acquire external knowledge and combine it with internal knowledge to create new knowledge as well. Acquiring external knowledge is a very complex process and several scholars have considered this process from different perspectives. In this paper, we try to integrate these perspectives and propose a System Dynamics (SD) model for knowledge transfer and creation dynamics within an industry. Using this model, we can test the impact of knowledge strategy adopted by a firm on its success in different knowledge situations.