RBV - Linking it to knowledge and learning u3s4p47

or.. the Knowledge Based View (as part of the Resource based View).

The KBV is considering knowledge the most important asset or resource under the RBV.

Spender (1996) said that the origin of all tangible resources lies outside the firm.

If you agree with this statement then it surely follows that competitive advantage is more likely to arise from the intangible firm-specific knowledge.

He says this is because it adds value to your production process in "a relatively unique manner".

Individuals tend to specialise in particular areas of knowledge and it can be difficult to transfer knowledge between individuals.

Explicit knowledge is the "know why" and is easier to articulate and pass on to other individuals.

Tacit knowledge is the "know how" and is more difficult to articular and pass on.

Grant (1996) says

• individuals are the source of knowledge creation
• efficiency in knowledge production requires that individuals specialise in a particular area of knowledge
• the essential task of the organisation is knowledge integration, ie to co-ordinate the efforts of specialists

So your employees are "assets walking around on two legs".

Tacit knowledge is almost impossible for rivals to imitate or replicate. (non-imitable and non-substitutable).

If an organisation relies heavily on the tacit knowledge of its staff, the greater the potential to permanently lose this expertise within the organisation, leading to a heavier emphasis on knowledge management systems.

Routines are to the organisation what skills are to the individual (Grant 2002, p149). They embody the organisation's learning to date and they come to act as the organisation's memory and an important store of knowledge.

Caveat Emptor: Organisations that have demonstrated a capacity for organisational learning through the creation of efficient routines might also have difficulties with responding to new situations.