Knowledge Organizations and Dynamic Organizational Capabilities

In this chapter, the authors first define a knowledge organization in the context of the knowledge-based view of the firm described in chapter 1. As business intelligence has emerged as a key pillar of highly competitive knowledge organizations, its use as a foundation for knowledge creation and application in service business is then discussed. This is followed by a discussion of the evolutionary growth model of knowledge organization, highlighting that superior innovative capabilities are closely linked to learning organization, the most mature level of knowledge organization. The second part of this chapter then describes the interrelationships between knowledge and core capabilities or competencies. Finally, the authors review example characteristics of knowledge intensive business services to prepare the groundwork for chapter 4, which will treat the basic service principles and theories in detail. DOI: 10.4018/978-1-4666-2512-9.ch003