Abstract:
Strategic knowledge is increasingly becoming an engine for change and creativity in many
industries and organizations: enabling effective operational and strategic initiatives. Existing
literature in knowledge management (KM), however, has focused mainly on generic outputs
obtainable from KM systems. This paper examines the strategic relevance of KM in enhancing
human capital management in firms. To achieve this objective we present a detailed literature
review on the implications of KM on effective human resource development, and the
consequences for an organization’s ability to sustain competitive position in the marketplace.
We propose that firms that develop and apply strong KM culture would be able to achieve
consistent high performance. In addition, when a firm is able perform better than competitors;
such a firm would be able to achieve sustainable advantage. This paper could serve as a frame
of reference for researchers, and could enable practitioners to gain better understanding of key
requirements for maintaining competitive performance in this 21st century via effective
integration of KM and human capital initiatives.
