According to Bollinger (1997), ‘Knowledge is a resource that is valuable to an organization’s ability to innovate and compete. It exists within the individual employees, and also in a composite sense within the organization. According to the resource’based view of the firm (RBV), strategic assets are the critical determinants of an organization’s ability to maintain a sustainable competitive advantage.’
We can define the knowledge and the integration of a set of information, rules, interpretations and connections set within a context and an experience that has happened within an organization, either general or to staff (Prusak, 2011).
Knowledge can very difficult to observe as it is intangible resource. Knowledge is stored in a person’s mind. This makes it almost impossible to observe them, as they may be implied or explicit. Tacit knowledge is that people have and inseparable from their experience and that can be shared and exchanged mainly through direct contacts. Explicit knowledge is formal; it can be reflected in the documents of an organization, reports, patents, manuals. Knowledge defines the identity, skills and active intellectuals of an organization; this can be based on truth (Frost, 2010).
Companies are beginning to realize the importance of ‘knowing what they know “and to make the best use of this knowledge. The knowledge is already recognized as the most important assets of the company, as ‘the only meaningful economic resource “, and therefore efforts are made and resources allocated to an increasing extent to define how to acquire it, to represent it, capitalize it and manage it. Successful companies are creating a culture of knowledge sharing, in which the collective knowledge (intellectual capital of the company) is effectively and methodologically shared to produce a continuous and successful innovation.
Within this business knowledge, processes, markets, customers, etc. are a critical aspect of every organization. How these elements combine to make the company more competitive. Good knowledge management tries to continuously control any kind of knowledge contained in their sphere of competence to meet present and future corporate needs.
The identification and exploitation of existing cognitive resources and to acquire usable knowledge to develop new opportunities; the planning and control of actions to develop knowledge capital to achieving the objectives of the organization (Rouse, 2013).
It is clear that knowledge is an important resource that must be acquired, categorized, maintained and operated to achieve the objectives of the company and create new opportunities. Knowledge is an intangible, volatile and is sometimes difficult capital to maintain and protect, yet is strategic to the modern enterprise. The practice-based perspective, hypothetically presumed that knowledge is entrenched in action and is attached to people actions. Also, procedures of knowledge management shall combine thinking and achievement in creating of knowledge activities. On the other hand, ‘objectivist perspective on knowledge’, Hislop (2005:19) perceives knowledge from an explicit opinion as, explicit knowledge is regarded as ‘codifiable, objective and context independent, shared easy, objective, and on the top divisible from both individuals and social values.’
Blockage of knowledge flow may exist I many organizations due to lack of cooperation between employees. Some employees are not willing to cooperate to enable knowledge to flow easily this is due to some jealousy and distrust in the organization. Another blockage of knowledge is lack of support from the top management. Knowledge can be blocked if top management does not do their best to smooth the ways of suck knowledge to flow in the organization. Sometimes employees with various ethnic groups could cause blockage of knowledge due to culture differences. To eliminate any communication barriers or blockage, a smooth channel of communication must be, maintained on personnel level as well as on departmental level. To address restrictions on flow of knowledge, conceptual maps are the best instrument for thought and communication, because they facilitate overall collaboration and sharing of knowledge. As organization charts (charts) communicate the hierarchical structure (of authority and responsibility in an organization), the same conceptual knowledge bases communicate the conceptual structure of knowledge in the organization, so that everyone -in the organization – understand and respond to their needs, significantly using it.
To be able to model solutions to the complex problems the organization is facing daily, to be able to use in the best way the collective knowledge, faster and more efficiently than we do today. In organizations, there often formalized methods or knowledge communication tools that hinder a quick and open sharing of knowledge, as required in a process of accelerated innovation are used: