Importance of Knowledge Management and Human Resource Management in Driving Innovation

Theory of management
0
Theory of management
Student’s Name
9/22/2019

Theory of management 1
The globalization of economy, market segmentation and the varying expectations of
the customers have developed the emerging need for the organizations to exploit the
inclusion of multiplicity and heterogeneity in the company. It has developed the need to
incubate technological advancements and develop innovations in the company. It is essential
to create an environment that endorses research, learning of the novel ideas and adoption of
the technologies that help in sustaining competitive advantage and handling the pressures in
the external and internal environment (Urbancova, 2013).
In order to undertake technological advancements and adoption of innovation, the
concept of knowledge management and human resource management has become vital for an
understanding of the explicit and the implicit knowledge and development of the capability
among the employees for grabbing the opportunities that lies in the external environment and
creates the competitive edge over the competitors. Development of the human capacity
allows the organization to not resist the adoption of change and develop the capacities that
help in operational excellence (North & Varvakis, 2016). The additional paragraphs of the
essay will cover the literature review that will emphasize the importance of resources and
organizational capabilities to manage the instability that occurs in the outside environment
and sustaining the competitive advantage.
In accordance with the views of Gupta and Dasgupta (2009), the concept of
knowledge formation focuses on the generation of innovative knowledge in the cooperative
environment. It fosters to develop a more understanding of the products, market, successes
and processes, tools and approaches that will facilitate in managing the external pressures and
reduce the impact upon the performance of the organization. It will allow the companies to
develop the tactics they help in meeting the strategic goals of the organization (Dasgupta &
Gupta, 2009).

Theory of management 2
Supporting to above views Wang & Noe (2010), knowledge creation allows creating
new knowledge through experimentation, interaction and practice. The adoption of
brainstorming activities allows generating new ideas for the business and developing a
system that supports the work of the company. It allows the company to timely use and
shares the relevant data with the employees for adopting change in response to the external
environmental pressures (Wang & Noe, 2010).
This concept generates an internal environment that nurtures organizational flexibility
and develops the dynamic capabilities of the company for effective management of the
challenges in the external environment. The knowledge at the organization is created through
instructing dialogue between implicit and explicit knowledge. The implicit knowledge helps
in the understanding of the structure and the culture of the organization. It also includes
knowledge of current leadership and knowledge. Through the concept of knowledge creation
the company develops new products and services and makes the modification in the present
products to improve the performance of the organization and ensures survival in the hostile
market (Mao, Liu, Zhang & Deng, 2016).
The companies can also sustain their competitive advantage through the concept of
knowledge sharing. Knowledge sharing allows transferring skills, knowledge, and abilities
and allows for the generation of the innovations to reduce the attack on the profitability of the
business and sustaining of competitive gain (Mao, Liu, Zhang & Deng, 2016).
In accordance with the views of Abdelrahman (2013), knowledge is reflected as the
main basis for the maintenance of competitive gain. The multinational corporations apply the
concept of the knowledge management system to their organization for the development of
the structures, process, and the right tools that facilitate the enhancing the organizational
performance and effectively manage the opportunities and threat that lies in the external

Theory of management 3
environment. It permits organizations to evolve and flourish in a heterogeneous global
environment (Abdelrahman, 2013).
In order to maintain the change in an organization, it becomes imperative for the
companies to strategically integrate their innovative management practices and knowledge
management practices in order to connect knowledge for innovation. Both the practices are
vital for creating knowledge involvement atmospheres in the administration (Fainshmidt,
Wenger, Pezeshkan & Mallon, 2019).
It allows effectively managing the explicit and implicit knowledge for turning the
organization into a learning organization which in turn strengthens experimentation within
the business and leverages the competitiveness of the organization. It will drive the
innovation process in the organization and will in effectively responding to the changing
environment. The process of knowledge creation and knowledge sharing allows developing
the dynamic capabilities and creation of the internal environment that fosters organization
resilience and easier to adapt to change in the organization (Fainshmidt, Wenger, Pezeshkan
& Mallon, 2019).
In accordance with Qureshi, Aziz & Mian (2017), individuals are considered as a tool
for driving innovation in the organization. The individuals in the organization possess the
skills, knowledge, experience to generate new ideas for the organization and help in facing
the external pressures and challenges. However, the management of human resources is
necessary for the effective performance of the organization. The external turbulence has
developed the need to invest in the training of the human resource and allowing them to
develop the skills and the competency for developing innovative strategies for the company
and allowing the organizations to develop its competitive edge over its competitors (Qureshi,
Aziz & Mian, 2017).