Critical Article Review: Knowledge Management and Organizational Competitiveness: A Framework for Human Capital Analysis
Knowledge management literature highlights the fact that in the current economy, the attainment of a constant competitive advantage relies on the organization’s capacity to develop and deploy its knowledge-based resources (Rodriquez & Patricia, 2003, 43). In the article, Rodriquez and Patricia state that people are the most difficult organizational resources to be controlled (McManus, 2006, 24). Thus, executives have traditionally based their competitive strategies on other factors like product and process technology, access to financial resources, economies of scale and protected market niches (Crawford & Cabanis-Brewin, 2005, 12). They examine the means through which organizational resources are used and combined, the causes which determine the achievement of a sustainable competitive advantage and the nature of payments generated by organizational resources (Badiruet al., 2007, 23).
Turner (2007, 16) states that they view a firm as the accumulation of unique resources of a diverse nature and that certain characteristics ought to be represented in order for organizational resources to become a source of sustainable competitive advantage. They also say that these resources ought to be rare, valuable, without substitutes and difficult to imitate (Phillips, 2005, 31). They also say that organizational knowledge that is used frequently is one that distinguishes between tacit and explicit knowledge, although there are many other knowledge. Tacit knowledge is attained via experience (Levine, 2002, 17). It is a form of knowledge with which we are all intimately familiar. In contrast, explicit knowledge is transmitted via formal, systematic language, and adopts the form of computer programs, parents, diagrams, among others (Lewis, 2004, 34).
However, even though people are the most difficult organizational resources to be controlled as said by Rodriquez and Patricia in the article, they are the most significant organizational resources as well. Thus executives are not supposed to look for other alternative as stipulated by the two authors but look for means through which they can improve their performance and efficiency. This is due to the fact that even if they decide to adopt use of technology, people shall be still required to run and operate that technological system or machines. The authors say that certain characteristic ought to be presented in order for organizational resources to become a source of sustainable competitive advantage. The article fails to mention these characteristics thus making it ineffective.
Badiru, A, Badiru, B, and Badiru, A, 2007, Industrial project management: concepts, tools, and techniques, New York, CRC Press
Crawford, J, and Cabanis-Brewin, J, 2005, Optimizing human capital with a strategic project office: select, train, measure, and reward people for organization success, Oxford, Auerbach Publications
Levine, H, 2002, Practical project management: tips, tactics, and tools, New York, John Wiley and Sons
Lewis, J, 2004, Team-Based Project Management, Washington, Beard Books.
McManus, J, 2006, Leadership: project and human capital management, New York: Butterworth-Heinemann
Phillips, J, 2005, Investing in your company’s human capital: strategies to avoid spending too little–or too much, Washington, AMACOM Div American Mgmt Assn.
Rodriquez, J, and Patricia, P, 2003, Knowledge Management and Organizational Competitiveness: A Framework for Human Capital Analysis, Journal of Knowledge Management, V (7), No. (3), 2003, 82-91
Turner, R, 2007, Gower handbook of project management, New York, Gower Publishing, Ltd.