Sustainable Competitive Advantage through the Knowledge Based Approach: An Empirical Evidence

According to the dictionary meaning knowledge is, “The psychological result of perception and learning and reasoning”. And Sustainable competitive advantage is dependent on building and exploiting core competencies. Success in today’s global, interconnected economy springs from the fast and efficient exchange of information. Sustainable competitive advantage is no longer rooted in physical assets and financial capital, but in effective channelling of intellectual capital (Seubert, Balaji and Makhija, 2001) Knowledge management has never been more important than it is today. With countries like China and India competing for a place in the global economy, moving up the value chain with more informed, educated and responsive business strategies is the only recourse. From the years firms are trying to accumulate the knowledge and to apply it to create & enhance economic value in order to create competitive advantage. According to Nonaka and Takeuchi (1995) fundamental research on both knowledge creation, and applied knowledge management revolve around the interlay of tacit knowledge and explicit knowledge. Tacit knowledge is the knowledge of skills acquired through experiences while the explicit knowledge is the knowledg