Knowledge based organization and competency based organization: a review of theories and approaches

Purpose: This article aims to review the key concepts of knowledge-based organization and competency-based organization. Design/methodology/approach: Based on literature an overview it is made for understanding the key concepts related to knowledge and competency-based organization approach. Findings: This overview identifies that knowledge and competence have emerged as the key drivers of competitive advantage in most of theories. In the new market where the intangibles assets are vital, knowledge and competences plays an important role in obtaining, maintaining and sustainable developing the competitive advantage. Moreover, knowledge-based assets underlying competences and competences in turn underlying the organization\u27s products and services. Therefore, the main challenge of the firms is its ability to create, transfer, assemble, integrate and exploit the knowledge-based assets. Originality/value: This paper emphasizes the beneficial attributes of competence management in knowledge-based organization, more specifically those involved in process of knowledge sharing.