Strategic theories of organizing are grounded in the notion that organizations should configure their internal resources and capabilities to address competitive opportunities and threats. The knowledge-based view suggests that knowledge may be the most enduring and strategic resource. This chapter presents a taxonomy for describing resources, capabilities and competitive environments in terms of four distinct yet related knowledge processing requirements or “problems”: complexity, uncertainty, equivocality and ambiguity. Each suggests a particular knowledge processing capability. The taxonomy is used to develop finer-grained distinctions regarding knowledge-based theories of the firm and the resource-based concept of inimitability.