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Currently, the concept of information and communication technologies (ICT) has been the allowing element in managerial innovation. There is confirmation of their influence on organizational success, and therefore, the ideas of smart organization (SO), knowledge management (KM), organizational capabilities (OC). Consequently, SO has become appropriate for diversity and change of beliefs, old and original planning, which increase novelty. These are limited among other concepts in trends that are universal through business websites or in scientific journals. Ode and Ayavoo (2020) explained that the concept of a knowledge-based view highlights the association between KM procedures to define practices that obtain and apply knowledge from inside and outside the firm in the best methods, which can be a key to the attainment of organizational aims and novelty performance. Additionally, Bresciani et al. (2018) noted that the concept of the internet of things (IoT) has impacted the technique of organizations toward innovation and how they generate and gather significance in business actions by applying the knowledge creation and integration as a KM capability. In another study by Tikhomirova (2020) noted that, as a regulation, innovation is deliberated as a sequence of process of construction of novel technologies in order to use in organization to achieve their own objectives.
On this point, Satyendra et al. (2018) explained that the OC concept depends on several theory outlines of social assets for generating intellectual capital, and knowledge processes for creating knowledge production. Additionally, Lee et al. (2007) suggested a framework to observe the impact of OC on electronic environment process achievement by applying OC, namely: (teaching obtainable, practical knowledge and knowledge level) and KM processes, namely: (acquisition, application and sharing). Moreover, Wang and Zeng (2017) noted the actions in a business to attain an outcome in line with the organizational objective; therefore, employees use different types of capabilities to confirm best results to build a complete framework of OC.
SO is not an easy concept to describe. Bresciani et al. (2018) showed that to effectively discover explanations to complicated innovation difficulties and to attain a job, it is essential that organizations accomplish numerous particular inputs and diverse processes of knowledge through the use of three subjects beyond ICT capabilities that would be valuable to address for an IoT smart organization: a) the inside use; b) the use for teamwork; c) the use for communication. Additionally, by examining the relationships between the degree of ties between OC and an organization, Wang and Zeng (2017) showed the effect of close relationships between OC and business as the group of capabilities that would arise once persons cooperate inside the business. In an organization, human capability is explained by a person’s knowledge to deal with business work. Similarly, OC can be considered as the capability shown by an organization to attain its objectives through classifying and achieving the accurate operation (Wang and Zeng., 2017).
In examining the influence of integrating between KM processes and OC between departments in organizations, Longo et al. (2019) found that, while industry 4.0 worships the likelihood of a business intelligence inserted into “things,” it overlooks the role of the human component, which is quite vital in several organizational events by considering the KM in every organizational process. Navimipour et al. (2018) also noted that it is essential that organizations reflect the numerous features which assist them in efficiently growing knowledge transfer, such as leadership. In addition, Nisar et al. (2019) argued that large organizations need to sustain the actual transfer of knowledge through partitions to remain competitive in their marketplaces, which progressively depend on the fast delivery of intangible assets by using their processes knowledge, technical capability, and organization capabilities. The technical capability mentions to the new technical skill also enabled draws of an organization (Satyendra et al., 2018). Furthermore, the organization delivers actual and strict valuations, and grows important performance elements based on altering technology (Khunsoonthornkit and Panjakajornsak, 2018).