Knowledge of the Firm, Combinative Capabilities, and the Replication of TechnologyBruce Kogut and Udo Zander
, Vol. 3, No. 3, Focused Issue:Management of Technology (Aug., 1992), pp. 383-3972.
Gupta,Anil K. (04/2000). "Knowledge flows within multinational corporations.
, 21 (4), p. 473.We have studied various theories of the firm, and also have understood the factors that help afirm attain sustainable competitive advantage. According to the resource based view of the firm,VRIN resources helps firms attain sustainable competitive advantage and hence achieve higher level of performance (Barney, 1991). Later the Dynamic capability of the firm added to the RBV by explaining that a firm can attain competitive advantage not just by having VRIN resources but by its ability to integrate, built and reconfigure these resources to address rapidly changingenvironment.
Now this article “
Knowledge of the firm, Combinative Capabilities, AndReplication of Technology
” states that a firm can attain competitive advantage by its ability to
generate new knowledge by the process of integrating or transferring information within the firmthat will help the firm to innovate, thus attaining a competitive advantage and hence leading tohigher performance.According to this article knowledge is not limited to individual, and if this was the case then inorder for the firm to change it just had to hire new workers. But as firms cannot change its skill by hiring new
workers, so the knowledge is embedded in the organization‟s principle and
culture. By understanding how firms can create knowledge they can innovate themselves intonew areas and will be able to perform better than the other organization. This article helps usunderstand why firms exist and also the effect of knowledge on the boundaries of the firm.Fig.1
Existence of thefirmEffects of knowledgeon the boundaries of the firmEffects of knowledgeon