MGT3007: Building Intelligent Organisations Assessment

Assignment 2: Problem Solving

Organisational Knowledge as a Strategic Resource and the Role of Organisational Learning in Achieving Competitive Advantage

Introduction

Organisational knowledge is a critical strategic resource that enhances innovation, operational efficiency, and long-term competitiveness (Simon and Lam, 2024). The Resource-Based View (RBV) argues that knowledge, being valuable, rare, inimitable, and non-substitutable (VRIN), forms the foundation of sustainable competitive advantage (Mahdi and Nassar, 2021). Knowledge Management (KM) involves the systematic creation, sharing, and utilisation of intellectual capital (IC)within organisations (Suparwadi et al., 2024). Organisational Learning (OL) ensures continuous knowledge acquisition and adaptation, enabling firms to respond to dynamic markets (Chen and Zheng, 2022). This essay critically examines how knowledge is created, shared, and leveraged strategically to drive organisational success in the digital economy.

Knowledge as a Strategic Resource

The Resource-Based View (RBV) posits that an organisation's competitive advantage stems from its internal resources, particularly those that meet the VRIN criteria:valuable, rare, inimitable, and non-substitutable (Mahdi and Nassar, 2021). Knowledge, in this context, is a strategic asset that enhances decision-making, innovation, and efficiency, making it a core driver of sustained competitiveness (Simon and Lam, 2024). Firms that effectively manage knowledge can create unique capabilities, fostering differentiation and long-term growth (Veríssimo et al., 2024).

Types of Knowledge Assets

Organisational knowledge is classified into explicit and tacit knowledge (Suparwadi et al., 2024). Explicit knowledge is codified and easily transferable, such as patents, databases, and training manuals. Tacit knowledge, on the other hand, is experience-based and difficult to articulate, making it a critical yet challenging resource to leverage (Kucharska and Erickson, 2023).

Further, intellectual capital (IC) encompasses three key components:

1. Human Capital – Employee skills, expertise, and competencies.
2. Structural Capital – Organisational processes, patents, and IT systems that store knowledge.
3. Relational Capital – Networks, partnerships, and brand reputation that enable knowledge exchange.

Empirical Evidence & Industry Insights

Firms such as Google, Apple, and McKinsey & Co. exemplify how knowledge-intensive organisations outperform competitors. Google’s AI-driven knowledge management, Apple’s innovation ecosystem, and McKinsey’s knowledge-sharing networks illustrate how effective KM leads to market leadership (McKinsey & Company, 2024). Research shows that knowledge-intensive firms achieve 2.5 times higher financial performance than their peers (Martínez-Noya and García-Canal, 2021).

By leveraging knowledge strategically, organisations can build resilient, future-proof competitive advantages, sustaining growth in knowledge-driven economies.

Organisational Learning and Knowledge Management

Definition & Purpose

Organisational learning (OL) is the process by which companies develop, store, and apply knowledge to improve performance and gain competitive advantage (Chen and Zheng, 2022). Effective OL enables firms to adapt to dynamic environments, innovate continuously, and refine strategic decision-making (Indriyani et al., 2025). Knowledge Management (KM) complements OL by providing structured mechanisms to capture, share, and utilise knowledge efficiently.

Theoretical Model: Nonaka & Takeuchi’s SECI Model

Nonaka and Takeuchi propose the SECI Model, which describes four modes of knowledge conversion (Farnese et al., 2019):

1. Socialisation (Tacit to Tacit) – Knowledge transfer through experience and collaboration (e.g., apprenticeships, informal mentoring).
2. Externalisation (Tacit to Explicit) – Documenting tacit knowledge into written formats (e.g., manuals, case studies).
3. Combination (Explicit to Explicit) – Integrating different sources of explicit knowledge (e.g., databases, reports).
4. Internalisation (Explicit to Tacit) – Employees learning and internalising new knowledge (e.g., training programs).

This cyclical process of knowledge creation fosters organisational innovation and efficiency, ensuring firms remain competitive in knowledge-intensive markets.

Digital Technologies & Knowledge Management Systems

Technological advancements play a crucial role in modern KM strategies, particularly through (Nyuga and Tanova, 2024):

• Artificial Intelligence (AI): AI-powered KM tools like IBM Watson enable automated knowledge extraction, data-driven insights, and decision support.
• Big Data Analytics & Cloud Computing: Large-scale data storage and processing facilitate real-time knowledge retrieval for strategic decision-making.
• Collaboration Platforms & Intranet Systems: Tools like Microsoft SharePoint, Slack, and Confluence enhance real-time knowledge sharing and organisational connectivity.

Real-World Application: Amazon’s Knowledge Management Strategy

Amazon leverages AI, big data, and predictive analytics to drive knowledge management. Its AI-powered recommendation system continuously learns consumer behavior through advanced data analytics. Additionally, Amazon’s AWS Cloud facilitates seamless knowledge sharing across global operations, ensuring efficient supply chain and customer insights management (Manasa and Devi, 2022).

By integrating OL, SECI-based KM practices, and digital technologies, organisations can maximise knowledge utilisation for sustained competitive advantage.

Creating, Sharing, and Leveraging Knowledge for Competitive Advantage 

Knowledge Creation

Knowledge creation is fundamental to innovation and competitiveness. Research & Development (R&D) plays a pivotal role in generating new ideas, enhancing products, and improving operational efficiencies (Veríssimo et al., 2024). Companies that invest in R&D outperform competitors by staying ahead in technological advancements and market trends (Simon and Lam, 2024). Employee training and a knowledge-driven organisational culture further foster continuous learning and innovation. Google’s 80/20 rule, which allows employees to dedicate 20% of their time to personal innovation projects, has led to groundbreaking products like Gmail and Google Maps (Krasteva, Sharma and Wagman, 2015).

Knowledge Sharing

Knowledge sharing enables organisations to distribute and utilise intellectual capital effectively. Internal platforms like intranets, mentorship programs, and Communities of Practice (CoPs) facilitate knowledge exchange (Zamiri and Esmaeili, 2024). Successful organisations encourage cross-departmental collaboration, breaking silos that hinder knowledge flow. For instance, Siemens’ ShareNet, a knowledge-sharing platform, reduced inefficiencies by 25% and improved innovation cycles.

Leveraging Knowledge

To sustain competitive advantage, firms must apply knowledge strategically:

• Data-driven decision-making enables businesses to predict trends, optimise supply chains, and improve market expansion strategies.
• Enhancing customer service and product innovation ensures long-term consumer loyalty.
• Operational efficiency improvements streamline business processes and reduce costs.

A prime example is Amazon’s AI-powered recommendation system, which analyzes user behavior, personalizes suggestions, and drives revenue growth. By integrating big data analytics and knowledge management, Amazon has optimized customer engagement and supply chain efficiency, maintaining its market dominance.

By effectively creating, sharing, and leveraging knowledge, firms can establish a sustainable competitive edge in the digital economy.

Challenges in Knowledge Management

Nevertheless, several challenges have been observed to affect KM implementation in organizations, which are as follows: Cultural barriers also persist in the same way, as employees regard knowledge as their property instead of the company’s property and hence, knowledge silence and knowledge lock-up are common in organisations (Kassa & Ning, 2023). This reduces the sharing of information across organizational departments and hinders the free flow of knowledge within the organisation. Moreover, there are technological constraints, whereby the implementation of artificial intelligent KM systems, cloud computing, and information security measures call for adequate capital investment. The problems of moving from old application systems to the current KM framework are common among many firms, and this hampers the efficiency of knowledge acquisition and sharing. Moreover, the measurement of the ROI of the KM initiatives is a challenge since knowledge is an intangible resource, and it is challenging to link them to the potential innovation and productivity (Nakash & Bouhnik, 2021).

In order to address such challenges, the following strategic interventions are necessary in organisations. Organizational support and change management are critical in the enhancement of knowledge-sharing and collaboration. Automated KM tools like IBM Watson can help in the acquisition and application of knowledge in the organization. Besides, the use of incentives to support recognition for knowledge sharing makes the activity become a part of culture in the organization (Suparwadi et al., 2024). The management of these barriers allows firms to attain maximum benefit from KM as a source of competitive advantage.

Conclusion

This essay has established that knowledge is one of the most important strategic assets that define innovation, competitiveness, and sustainability. Concepts and models like SECI Model helps the organisations in the management of learning and knowledge within the firm. Thus, although there are obstacles like cultural resistance and technological limitations, AI solutions and leadership in organizations will improve the effectiveness of KM. In today’s world, managing knowledge based business models will be a key factor in maintaining competitiveness, flexibility and growth in organisations.

Summary of Assessment Requirements

The assessment required the student to critically analyse the strategic role of organisational knowledge, Knowledge Management (KM), and Organisational Learning (OL) in achieving sustainable competitive advantage in the digital economy. The task was designed to assess the student’s ability to:

• Apply the Resource-Based View (RBV) to explain knowledge as a strategic VRIN resource.

• Differentiate between explicit, tacit, and intellectual capital components.

• Analyse Organisational Learning theories and Knowledge Management models.

• Critically evaluate the SECI Knowledge Creation Model within real-world organisational contexts.

• Demonstrate understanding of digital technologies and KM systems such as AI, cloud computing, analytics, and collaboration platforms.

• Use industry examples and empirical evidence to support arguments.

• Discuss knowledge creation, sharing, and leveraging for strategic advantage.

• Examine challenges and barriers in KM implementation and propose practical solutions.

• Apply academic literature, Harvard / APA referencing, and critical evaluation skills.

The assessment required an academically rigorous discussion supported by:

• peer-reviewed research

• theoretical frameworks

• organisational case examples

• critical reflections on practice rather than descriptive writing

How the Academic Mentor Guided the Student Through the Assessment

The Academic Mentor supported the student by breaking the assessment into manageable stages and guiding them through each section in a structured, step-by-step approach.

Step 1 : Understanding the Assessment Scope and Expectations

The mentor first discussed:

• the purpose of the assessment

• key learning outcomes

• marking criteria and expectations

• the importance of critical analysis over narration

The mentor helped the student identify the core analytical focus areas, including:

• strategic value of knowledge

• Knowledge Management processes

• Organisational Learning frameworks

• practical application through industry cases

This ensured the student approached the task with conceptual clarity and academic direction.

Step 2 : Structuring the Essay and Aligning it with Theoretical Foundations

The mentor guided the student in structuring the assessment logically, ensuring coherence and academic flow:

1. Introduction : establishing knowledge as a strategic resource

2. RBV and VRIN perspective of knowledge assets

3. Types of knowledge and intellectual capital categories

4. Organisational Learning and Knowledge Management linkages

5. SECI Model and knowledge creation cycle

6. Role of digital technology in KM

7. Knowledge creation, sharing, and leveraging for competitiveness

8. Real-world case applications

9. Challenges and barriers in KM implementation

10. Strategic recommendations and conclusion

The mentor emphasised:

• integrating theory with analysis

• maintaining essay coherence

• linking each section back to competitive advantage

Step 3 : Reviewing Literature and Integrating Scholarly Evidence

The Academic Mentor encouraged the student to:

• use peer-reviewed journals and credible academic sources

• support claims using current industry and research insights

• avoid reliance on generic or descriptive sources

The mentor also guided the student on:

• synthesising rather than summarising literature

• demonstrating critical engagement with theory

• connecting concepts to industry practice

This improved the academic depth and credibility of the assessment.

Step 4 : Applying Theories to Real-World Industry Examples

The mentor encouraged the student to strengthen analysis by linking:

• SECI knowledge creation model to innovation practices

• R&D investment to organisational growth

• AI-driven KM systems to digital transformation

• KM practices to operational efficiency and strategic decision-making

Examples such as Amazon, Google, Siemens, Apple, and McKinsey were incorporated to:

• illustrate practical implementation

• demonstrate strategic value creation

• reinforce theoretical arguments

This aligned the assessment with applied learning objectives.

Step 5 : Developing the Critical Analysis of KM Challenges

The mentor guided the student to critically evaluate:

• cultural resistance to knowledge sharing

• technological barriers

• KM implementation costs

• measurement and ROI challenges

Rather than simply listing challenges, the student was encouraged to:

• examine organisational implications

• connect barriers to performance outcomes

• propose realistic managerial interventions

This strengthened the evaluation and reflective analysis component of the essay.

Step 6 : Refining Academic Writing, Referencing, and Argument Flow

The mentor provided guidance on:

• maintaining academic tone

• improving coherence between sections

• strengthening argument continuity

• correct APA referencing and citation structure

Feedback focused on:

• clarity of critical discussion

• strength of theoretical integration

• alignment with assessment objectives

The final submission demonstrated:

• rigorous academic writing

• integrated conceptual understanding

• strong application of theory to practice

How the Outcome Was Achieved and Learning Objectives Met

Through structured guidance and iterative refinement, the student successfully demonstrated:

• Understanding of knowledge as a strategic VRIN resource

• Application of RBV, SECI, OL, and KM frameworks

• Ability to connect theory to real-world organisational strategy

• Critical analysis of digital transformation and KM systems

• Awareness of KM challenges and managerial solutions

• Competence in research synthesis and academic evaluation

The assessment outcomes reflected the key learning objectives, including:

• strategic thinking capability

• analytical and conceptual reasoning

• academic writing and research competence

• ability to integrate theory and practice

Final Summary

The assessment required a critical, theory-driven exploration of how organisations create, share, and leverage knowledge to achieve sustainable competitive advantage. Through structured academic mentoring, the student was guided step-by-step in developing a logically organised, research-supported, and critically reflective essay that successfully met the assessment standards and demonstrated achievement of the intended learning outcomes.

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