The Roles of Knowledge Management and Organizational Innovation in Global Business

The Roles of Knowledge Management and Organizational Innovation in Global Business

DOI: 10.4018/978-1-4666-9562-7.ch087
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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.
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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).

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