Knowledge Management (KM) refers to a range of practices used by organizations to identify, create, represent, and distribute knowledge for awareness, learning and reuse across organizations. KM is closely related to organizational learning initiatives. This may be distinguished from organizational learning by emphasizing on the management of specific knowledge assets and development and cultivation of the channels through which knowledge flows. The present paper investigates the vital link between management of knowledge in organizations, innovations in which an organization may involve KM and the development of a sustainable competitive advantage. Various hypotheses have been formulated to know whether KM and competitive advantage are interrelated or not. Innovation in the product and services are done by various organizations but in this paper the authors have tried to study whether the innovation in KM is critical for the success of an organization or not. The paper also provides practical implications for creating a competitive advantage in modern firms. KM covers a wide range of functionalities, support and different sets of activities where organizations have to keep a check on various departments. Therefore, to achieve this research objective, the authors study the sharing of best practices and knowledge of employees in different areas of organization.

We live in the knowledge age, a new era which is likely to have a radically different outlook and entail a new business compass to traverse. The world is changing fast which is crucial to the success of firms in the rapidly changing setting of the knowledge era. Success in today's global, interconnected economy springs from the fast and efficient exchange of information. Sustainable competitive advantage is no longer rooted in physical assets and healthy finances but in effective channeling of intellectual capital.

The development and practice of Knowledge Management (KM) is continuously and dramatically increasing in organizations. Due to improvements in KM, the race for seeking a competitive edge through knowledge increases at a faster rate. Businesses have long recognized the importance of managing their intangible assets. Development of brands, stakeholder relationship and reputation and organizational culture is readily viewed as sustainable catalyst of business advantage. The ability to leverage and develop intangible assets, particularly those providing financial and professional services, creates a core competency to organizations. In this knowledge-intensive organization, knowledge processing is the stepping stone to success. In any organization, efficient KM is a very critical issue to gain cutting edge advantage and is being considered as one of the most important assets.

Knowledge Management Journal, Indian IT Sector, Organizational Learning, Organizational Culture, Intangible Assets, Professional Services, Knowledge Management System, Globalization, Business Organizations, Incremental Innovation, Radical Innovation, K-Commerce, Knowledge Development, Insurance Policies, Database Applications.