SYSTEMS INTEGRATION 2006 72 From Competitive Advantage to Knowledge Cybernetics

Business organisations generally like to have a competitive advantage in their market. The strategic management paradigm develops theory to help this occur. Its early theory arises from optimising economic theory, the inadequacy of which led to the resource-based view. Then knowledge management was harnessed which sees knowledge as a valuable strategic resource recognising the need to look more inside the organisation qualitatively. A further development uses management cybernetics through viable systems theory, including the use of knowledge cybernetics. This recognises that achieving competitive advantage requires that an organisation’s pathologies need to be recognised and addressed. Key words: strategic management, competitive advantage, economic theory, management cybernetics, viable systems theory.