Leveraging Cognition for Competitive Advantage: A Knowledge-Based Strategy Process

Abstract

The organization that wants to build competitive advantages has to create and leverage its capabilities. One of the central bases for achieving competitive advantage is the organizational capability to create new knowledge and transfer it across various levels and parts of the organization. Because knowledge is central to strategy formulation and implementation, knowledge management has become a key strategic task facing managers for achieving success in today's complex and dynamic environments. A major challenge facing strategic management is engineering and managing the individual and group level knowledge that facilitates better strategies and invokes commitment. A knowledge management based of strategy formulation process is presented. Traditional strategy frameworks are evaluated and a comprehensive cognition and learning centered strategy framework is suggested as a better of strategy formulation and implementation for achieving competitive advantage. The implications of the knowledge-based approach for strategic management practice and research are highlighted.

Keywords: Knowledge Management, Strategy Formulation, Competitive Advantage, Cognitive Leverage

JEL Classification: L2, M1, M10, M14