Strategic management Essay Example | Topics and Well Written Essays - 2500 words - 1

Strategic management - Essay Example Unilever was one of the first to recognize the importance of strategic knowledge management, having accumulated extensive evidence on its development and implementation in a wide organizational context. The idea of knowledge creation and knowledge transfer is central for the whole paper. The literature on strategic knowledge management identifies these two key processes to be major components of knowledge management process. Both significantly influence organisation’s success. â€Å"All managers must manage knowledge. Knowledge must not only be gained, but shared throughout the organization. This ability to create and transfer knowledge will be the key to competitive success† (Higgins & Vincze, 1993). Both knowledge creation and transfer became even more indispensable to companies operating in modern global markets, as knowledge management and accelerated innovation emerged to be crucial success factors for global competition in the 21st century. (Cumming & Wilson, 2003 ) Von Krogh, Nonaka & Aben (2001) identified that the primary purpose of knowledge creation is to advance the company’s potential of creating innovation and to reduce the time span to the market success of new products / services introduced by the company. Usually knowledge creation is pursued using small-sized groups of 5-15 specialists that actually develop collective tacit knowledge through an extensive experience and discussion of new business processes, products, use of technologies, etc.