Knowledge is the state of awareness, understanding and amassed thoughts gained through experience and education. It is present in ideas, judgments, intuitions, competencies and skills of the individual. From the management perspective, knowledge is contextualized in hierarchy that begins with data, rises through information to knowledge and wisdom (Rowley, 2007). Knowledge is the deep understanding of what the data and information mean and also how it can be used to do something. Knowledge is a human and highly personal asset that represents the pooled expertise and efforts of networks and alliances (Cranfield and Taylor, 2008).
The environment of change, complexity and uncertainty, strong economic growth, rapid advancement in technology, increased competition, need for quick and efficient decision making, limitation of existing initiatives, need to strengthen relationships with customers and transformation of an era of information scarcity to information surplus are the key drivers that created the need for the management of knowledge assets (Warier, 2003). Today, organizations mainly focus on rapid adaptation to market changes, faster problem solving, and improved customer service. The organizations want to be proactive and predict the forces that shape the markets in the field of operations. Capitalizing on knowledge in the form of patents, processes, management skills, technologies, information about customers and suppliers, and core competency experience has become their primary focus. So, to leverage the intellectual capital and ensure sustenance of their competitive advantage, organizations are remodeling and restructuring themselves, resulting in the formulation of knowledge organizations and the evolution of the Knowledge Management (KM) concept.
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