R1906D8711022

TABLE OF CONTENTS

1.0 Introduction…………………………………………………………………2

2.0 Main Body of Assignment…………………………………………………..3

3.0 Table 1……………………………………………………………………….4

4.0 Conclusion……………………………………………………………………7

5.0 References……………………………………………………………………8
Question

Question: According to Dasgupta and Gupta “The increasing turbulence in the external
business environment has focused attention on the resources and organizational
capabilities as the principal source of competitive advantage.” (2009, p.204).
Discuss with reference to appropriate literature sources, the extent to which the
creation, sharing and utilization of knowledge is central to this resource-based view of
competitive advantage. Reference: Dasgupta, M. et Gupta, R.K. (2009). Innovation in
Organizations: A Review of the Role of Organizational Learning and Knowledge
Management. Global Business Review. Global Business Review.

Resource -Based View (RBV) of competitiveness evaluate and elucidate assets of firms to
comprehend how firms accomplish viable competitive advantage. The emphasis of RBV is
the theory of replication-proof traits of the business as bases of top-quality accomplishment
and competitive advantage (Barney, 1986; Hamel and Prahalad, 1996). Assets that is
incapable of being effortlessly transmitted or procured, that involve a comprehensive period
of study or a foremost adjustment in the organization atmosphere and ethos, are more liable
to be exclusive to the organization and, consequently more arduous for rivals to copy.
This composition attempts to clarify the resource-based position of keenness within
organizational information for value conception. It endeavors to emphasize the necessity for
establishments to invent, allocate and apply information in current chaotic commercial
atmosphere by emphasizing the significance of possessing a concentrated view of assets and
administrative competencies that can be employed to recognize areas which the organization
can focus its energies to preserve a competitive advantage. A requisite for sustained
education and investment in tools for information administration is explained
comprehensively highlighting several methods that organizations employ to sustain
competitive advantage like information preservation methods to guarantee knowledge loss in
establishment that can destructively influence its competencies via employing an incompetent
information asset that prevent sustained education and re-education.
Organizations now function in a multi-faceted atmosphere that they have to relate with
efficiently. This efficient relationship promotes organizational adjustment that preserves a
competitive advantage and keep abreast of variations in the peripheral environment. The
aptitude of a business to create and maintain competitive advantage is influenced either
positively or negatively by several factors that are either internal or external. The difference in
accomplishment between different organizations depends on exceptional inputs and
capabilities (Conner, 1991).
Honda is a very good illustration of a company following RBV that fostered its business
strategy about the organization’s forte, competence and know-how in construction of
gasoline-based locomotives. Originally, Honda began through diminutive clip-on
locomotives for bicycles before progressing to two wheelers such as scooters and motorbikes,
naval locomotives, generators, lawn and garden tools, and automobiles (Honda and Acura
vehicles) and even jet aircrafts. Each of these inventions contends in quite dissimilar product
verticals, but controls an exclusive asset and competency of Honda to construct world class
gasoline-based locomotives.
The majority of firms need to utilize resources coming into it with knowledge being one of
the most important. The conception, distribution, management and deployment of
information properly makes it a basis of competitive advantage for the firm. According to
Dasgupta (2015, p147) information is perceived as something that can be inferred from
theorizing processes meticulously, recognizing variables along with measurement within
investigational models giving rise to recognition of interconnection and forecasts generated
concerning realities adequately assessed by reasoning.
However, information as an asset is difficult to administer. Obvious information can be
warehoused in archives or records but indirect information resides in peoples’ brains. It is the
administration of this information that presents a greater task for majority of businesses.
It has been postulated that indirect knowledge can be handled tactfully by controlling diverse
elements which impacts an organization’s values, configuration, expertise and governance.
These elements configure the pillar of a business’ attempt to acquire and administer
information efficiently. Therefore, both organizational education and information
administration underpin each other in order to quicken the invention procedure which leads to
creation of new products and services or enhancement in the prevailing merchandises and
procedures. It also leads to the conception of novel information from relentless attempts to
trials. Novel information is conceived regardless of the success or failure of the innovation
process and functions as an education basis for later innovation attempts. information flows
from the user, and the outcome of the innovation process when integrated with existing
knowledge lead to further innovation. These same elements conceive a collaborative result
between organizational education and information administration by enhancing each other.
Innovation is classically comprehended as the effective initiation of a novel and valuable
element, like novel method presentation, system, procedures, or novel or transformed
products and services. It is an educative procedure whereby priceless concepts are changed
into innovative configurations of additional worth for the business and its interested parties.
According to Christines Soo, ‘Innovation is a mixture of process and product outputs that
include new or modified products and services, patents, new marketing techniques, new
managerial tools and administrative processes, licenses and wider thought leadership
represented by things like presentations at conferences and publications’ (Soo et al. 2002: 4).
Innovation which is a prerequisite for competitive advantage takes different forms which can
be Product (new product formation) or Process (achievement of efficient production method
as a result of the usage of novel thoughts to prevailing processes). It can lead to drastic
changes (Radical) or lead to step-by-step improvement (Incremental).
The ability to increase the depth and diversity of knowledge by an organization is done
through learning. There are different perspectives to Organizational Learning. The
sociological perspective according to Smith (1999), viewed from point of effect of power
structures and hierarchy, conflict, ideology, and rhetoric. However, according to Gieskes et al
(2004), there are six perspectives to organizational learning and they are Information-
processing, Strategic, Contingency, Psychology, Systems-dynamics and Production-
management. The characterization of each perspective is stated in Table 1 below.
TABLE 1- PERSPECTIVES ON ORGANIZATIONAL LEARNING

S/No PERSPECTIVE CHARACTERIZATION: Learning is…

`1 Information-processing Intensifying and enhancing knowledge via processing
perspective data
2 Contingency perspective Adjusting to environmental variances
3 Psychology perspective Incessant and combined allocation of theories in the
setting of communal exploit
4 Systems-dynamics Fostering comprehension of the multifaceted causations
perspective of communal certainties
5 Strategic perspective Constructing exclusive capabilities for competitive
advantage
6 Production-management Upgrading effectiveness via practice
perspective

(Gieskes et al, 2004)

Nonaka (1991) described process phases in terms of four steps as

1. “The recognition of information that seems relevant to learning and the creation or
generation of new knowledge.
2. The exchange and diffusion of knowledge either from the individual to the collective
level or at the collective level itself.
3. The integration of knowledge into existing knowledge systems at a collective level or
an individual level or both, or into procedural rules of the organization, whereby
either integration or adoption of a system can take place.
4. The transformation of new knowledge into action and the application of the
organizational routines so that it has an effect on the behaviour of the organization”.

Knowledge Management has been defined by Gorelick and Mousou (2006) as a technique
that elevates collaborative environment for securing and distributing existing knowledge,
generates prospects to create new knowledge, and makes available the means and tactics
needed to utilize what the organization recognizes in its endeavours to meet its strategic
objectives.
According to Liao (2007), there are two types of information administrative approach for a
firm. The first is a situation that information is intimately connected to the developer and is
disseminated largely via direct personal interaction identified as personalization strategy. The
second is a situation that information is meticulously organised and kept in data banks ready
for retrieval and utilization by company personnel known as codification strategy.
The effect of information administrative techniques on accomplishment interacts principally
to the organization’s aptitude to create—either through enhanced procedures or enhanced
products and services. Administration of information is crucial since it is a way by which an
organization can recognize the outside environmental influences and inside influences that
have a direct or indirect effect on productivity, employee motivation, resources and materials
planning, strategy formulation, objective setting and execution, management strategy and
style, operations, leadership structures, disagreement control and its values. This is crucial as
it governs an organization’s capabilities. Due to the global operating environment,
organizations are rapidly influenced economic events around the world. This has led to
organizations moving away from Michael Porter’s approach in the ways they seek to add
value as illustrated by Gerald & Clyde (2008, p.138). This approach concentrates on ability to
create monopolies and placing barriers ton access by competitors. The RBV guarantee
adequate reaction to quick environmental fluctuations by an organization since creation of
market opportunities comes from its ability to use internal knowledge rather than
concentrating all resources on one specific prospect as propagated by Porter. The RBV
approach protects an organization from being subjected to unbearable risk as it can take
advantage of many opportunities to achieve its objectives. The ensures better risk
management for the firm and ability to survive various environmental threats from
competitors. (Jamie et al, 2010 p 947)
According to Fang et al (2008) the attributes of knowledge causes it to be an origin of
competitive advantage and an aim of managerial focus. This supports Dasgupta’s (2015) view
that knowledge encompasses comprehension of theoretical situations and inevitability of
imminent realities. This nurtures innovation, guaranteeing the ability to satisfy extremely
volatile and erratic needs of customers.
Organizational Culture can be defined as the deeply seated (often subconscious) ethics and
convictions shared by employees in an organization. It is expressed in the archetypal traits
of the organization. The constituents of customary conduct, norms, ethics, thinking, rules of
the game and attitudes all form part of organizational culture (Martins & Terblanche 2003).
Firms that are able to motivate and increase the knowledge of their human capital are in a n
enhanced state to confront the swift environmental fluctuations and innovate in the sphere
where they choose to invest and participate (Nonaka, 1994). The problem-solving
competencies of knowledge employees rest in their education background, professional
training, resourcefulness and incentive.
Technology has developed to immensely empower organizational education and information
administration as the scientific techniques inside a firm decide how information
dissemination all through the business including information and retrieval.
The world has arrived the Information Period where information technology has changed
the world into an Information Highway Network. Information technology, if properly utilised
by businesses, may enhance product quality, upgrade workflows, empower them to react to
clients, and enhance interaction with clients and suppliers.
“Technology policy reflects the innovative attitude of an organization and its commitment to
innovation” (Ettlie & Bridges, 1983). It comprises elements like engaging scientific
employees, assigning monies for novel industrial growth, and preserving a custom of staying
at the vanguard of an industrial region in a specific industry. Technology implements like
intranets, database, etc., or non-technology implements like thinking and collaborative study
facilitate a firm to utilise and harness information, consequently raising probabilities of
conceptualization. The methodical approach to storage, retrieval, interrogation, and
evaluation of data also encourages constant progress (Barber et al. 2006; Hsu 2006). Through
a conversion of knowledge from the implicit to the explicit firms can improve their chances
of sharing
knowledge and improve innovation performance. Enterprise Resource Planning (ERP) which
is a scientific device, is an effective technique of incorporating best practices and conveying
them to accepting organizations with the aid of personal contacts. Conversely,
information technology might block creativity by regimenting and mechanising current
processes and workflows. Therefore, firms need to comprehend the correct scientific
capability that would encourage innovation (Gordon & Tarafdar, 2007). “The design of the
knowledge management system also facilitates future changes, updates, and additions to the
process models which are relevant to the business of the organization” (Barber et al. 2006).
Technology has considerably assisted information and resource management enabling
generation of information by organizations. Social networking employed in the gathering of
implicit information is a booming technology. Leakage of information is easy as a result of its
fluidity which caused organizations to create structures limiting it at certain levels with precise
organization culture for information dissemination. A good example is in the pharmaceutical
manufacturing companies that I’ve worked, access to the batch manufacturing records which
contain formulations and processes for producing medicines are restricted and employees are
not allowed to bring phones into the manufacturing areas.
Professor Noboru Konno in a television discussion (Vantage Point) avowed that Japanese
accomplishment of the 70s has stopped functioning. There is an emergency in the nation and a
reconsideration of its creative strategies. He placed emphasis on the need to shift innovation to
demand aspect which utilizes social information from supply aspect. This supports the RBV in
that a firm utilizes the additional information it has acquired about the outside environment to
produce opportunities or innovations that provide value from the exclusively recognized assets
and competencies in its possession.
Technological progression has resulted in enhanced knowledge management which has been
augmented by huge advances in technology in the last 20 years. Such distinguished
technological advances have been observed in enterprise resource planning systems,
warehouse and transportation management systems, customer and vendor relationship
management systems which have transformed transaction processing within supply chain
collaborations (William & Pedro, 2015 p. 45-46).
In conclusion, organizational learning and knowledge management are enormously crucial
for an organization to be flexible enough to adjust and react to fluctuations in the
environment. An organization that successfully governs knowledge will also be a learning
organization. Employees and information are the building blocks for generating novel
information. Learning buoyed by knowledge management is the process that enhances
knowledge profundity and variety. A knowledge management strategy in congruence with
the organization structure, culture, procedures, and technology substructures nurtures
innovation and originality.
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