Knowledge Management and Relational Capital: A Report

This report analyzes the significance of knowledge management and relational capital in achieving a competitive advantage within contemporary business environments. It explores how enhancing internal relations, particularly through the development of relational competences, contributes to improved company-environment relations. The study, conducted in 2018-2019, focused on large, internationally operating companies, assessing the role of leadership and relational competences in creating company value. Data was collected through personal interviews and a questionnaire, revealing that effective knowledge management, involving the acquisition, sharing, and application of knowledge, is crucial for organizational success. The report emphasizes the importance of adapting to dynamic environmental conditions, leveraging internal and external knowledge, and utilizing technological infrastructure to facilitate knowledge management processes for achieving sustainable growth and innovation. The findings highlight the link between internal relational capital, knowledge management, and the ability of an organization to adapt to the changing needs of its environment.

Running head: KNOWLEDGE MANAGEMENT
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Topic: Knowledge Management
Słupska, U., Posadzińska, I. and Karaszewski, R., 2019, November. Knowledge
Management and Internal Relational Capital versus Development of Relations with
Environment. In ECMLG 2019 15th European Conference on Management, Leadership
and Governance (p. 349). Academic Conferences and publishing limited.
Aim of the paper is to attempt in demonstrating that enhancing corporate internal
relations lead in improved relations in business with environment. The study provided
enough evidence that there are improvements made within relations with the employees that
help the organizations for making better external relations. In current conditions of
management, relevant knowledge could be considered as key source for competitive
advantage. Organization’s competitive advantage is based on internal resources as well as by
results of cooperation with environment. Relational capital’s creation activates the potential
abilities and skills and contributes in acquisition of competences and knowledge in
maintained relations. Relational capital’s creation and knowledge management affect growth
of enterprise essentially. The paper aims in demonstrating the enhancing of internal relations
within enterprise leads in improved environment relations within the organization. This study
focused about relational competences for creation of value of company and the leadership
role. This study was a part of research project. This covered large organizations that are
operating internationally. Organizations that were selected, were based on leading position
within branch and innovative potential. Collection of data was achieved by personal
interview Research tool for data collection was questionnaire of personal interview. For
implementation of overall research project, there was six hypothesis formulated. For purposes
of the paper, one is essential.
Within organizations, actions are taken for improving forms and tools are affecting
relations among employees with respect to the impact over relations with the stakeholders.

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This study established business relations’ method that are used among organization and
employees. An analysis is undertaken for improving relations of the organization with the
environment and its implications. Results might be useful to other organizations as
information is provided on effective was for shaping knowledge flow and relational capital of
an organization. Present conditions of competition, globalisation, quick technological
progress, needs of client and business activity’s internalisation characterised by changeability
are determinants for growth possibilities of the organizations. Thus, higher importance should
be ascribed to businesses’ capability and entrepreneurial flexibility for implementing quick
changes with respect to environmental conditions that are dynamic. With the economy
depending on knowledge, organizations experience rising pressure for looking for the
innovative solutions within several operational areas.
There is use of special emphasis for searching new methods to reach and obtain
resources based on knowledge and skills that is not encumbered with rapid obsolescence’s
risk. It consists of creative processes which are tough in copying. Modern technologies’ rapid
development, increase in importance of knowledge and information and mutual relations
among entities of business within economic systems caused few functional changes within
contemporary organizations. In business world, knowledge is major asset that proves in
having huge potential. It is not only crucial, however, also should be used skilfully and
properly. Knowledge within contemporary organizations consists of organization’s internal
knowledge along with external knowledge. Former is knowledge that is gained over recent
years in development of organizations and encompasses established behavioural, operational
patterns and standards along with owned patents, inventions, improvements and licences.
Internal knowledge might come from groups as well as individuals. On other hand, the
external knowledge could be found on borderline among organizations and environment. This
is gained by forging of the relational competences. Knowledge management means also

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learning from one another, entities entering in different relations. Ownership of relational
competences and right resources of knowledge is considered as competitive edge. The
knowledge that is acquired and created by the organizations should be effectively and
constantly spread around, used and applied.
Knowledge’s perception as strategic asset enables business in gaining advantage
forces the organizations in looking for ways in managing is effectively. Knowledge
management might be stated as process for knowledge storing, using, gaining and sharing.
This is connected to capturing, transferring and organising explicit and implicit knowledge
within an organization. The employees could use the knowledge for more effective and
efficient performance, maximizing the chances for an organization to gain competitive edge
within the market. This is a prerequisite also development of the new products and
technologies. Knowledge management should help the organization in gaining, utilising and
analysing knowledge for making better and quicker decisions and for responding to the needs
of market more promptly. It is determinant for success of the organization. Every
contemporary organization must manage knowledge to enjoyment of the tangible benefits.
For managing knowledge within the organization effectively, appropriate technological
infrastructure should be available. Lack of technological infrastructure could be one essential
barrier in knowledge management’s implementation within the organizations. Maintaining
cooperation along with entities of business provides the partners with the opportunities and
enhances the capabilities for quickly catching up missing knowledge.

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Bibliography
Słupska, U., Posadzińska, I. and Karaszewski, R., 2019, November. Knowledge Management
and Internal Relational Capital versus Development of Relations with Environment. In
ECMLG 2019 15th European Conference on Management, Leadership and Governance (p.
349). Academic Conferences and publishing limited.