Abstract
This chapter explains the roles of Knowledge Management (KM) and organizational innovation in global business, thus describing the theoretical and practical concepts of KM and organizational innovation; the significance of KM in global business; and the significance of organizational innovation in global business. The accomplishment of KM and organizational innovation is vital for modern organizations that seek to serve suppliers and customers, increase business performance, strengthen competitiveness, and attain regular success in global business. Thus, it is necessary for modern organizations to investigate their KM and organizational innovation applications, create a strategic plan to constantly explore their functional advancements, and immediately respond to KM and organizational innovation needs of customers. Applying KM and organizational innovation will significantly enhance organizational performance and achieve strategic goals in the information age.
TopBackground
The modern business environment is characterized by intense competition (Papadimitriou & Kargas, 2012). Managing knowledge is effectively critical to the competitive power of an organization (Park, Lee, Lee, Jiayi, & Yu, 2013). KM has attracted an increasing number of researchers since the concept was born (Li, Guo, Zhi, Han, & Liu, 2013). Knowledge is the most important asset for an organization to create value and sustainable competitive advantage (Chen, 2012). KM becomes a key organizational capability for creating competitive advantage (Kale & Karaman, 2012). One of the most important aspects of KM is to create a system that is capable of providing mechanisms and methodologies allowing the right knowledge to be at the right place and at the right person as well as at the right time within an enterprise (Oztemel & Arslankaya, 2012).
Key Terms in this Chapter
Organizational Innovation: The process of translating an idea or invention into a good or service that creates organizational value.
Organizational Performance: An analysis of a company's performance as compared to goals and objectives.
Innovation: The process of translating an idea or invention into a good or service that creates value or for which customers will pay.
Knowledge Creation: The formation of new ideas through interactions between explicit and tacit knowledge in individual human minds.
Business: An organization or economic system where goods and services are exchanged for one another or for money.
Knowledge Management: The strategies and processes designed to identify, capture, structure, value, leverage, and share an organization's intellectual assets to enhance its performance and competitiveness.
Organizational learning: The organization-wide continuous process that enhances its collective ability to accept, make sense of, and respond to internal and external change.
Competitive advantage: A superiority gained by an organization when it can provide the same value as its competitors but at a lower price, or can charge higher prices by providing greater value through differentiation.
New Product Development: A process of developing a new product or service for the market.