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A Firm as a Knowledge-Creating Entity: A New Perspective on the Theory of the Firm

Author

Listed:
  • Nonaka, Ikujiro
  • Toyama, Ryoko
  • Nagata, Akiya
Abstract
The knowledge-based view of the firm views a firm as a knowledge-creating entity, and argues that knowledge and the capability to create and utilize such knowledge are the most important source of a firm's sustainable competitive advantage. Knowledge and skills give a firm a competitive advantage because it is through this set of knowledge and skills that a firm is able to innovate new products/processes/services, or improve existing ones more efficiently and/or effectively. The raison d'etre of a firm is to continuously create knowledge. Copyright 2000 by Oxford University Press.

Suggested Citation

  • Nonaka, Ikujiro & Toyama, Ryoko & Nagata, Akiya, 2000. "A Firm as a Knowledge-Creating Entity: A New Perspective on the Theory of the Firm," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 9(1), pages 1-20, March.
    • Handle: RePEc:oup:indcch:v:9:y:2000:i:1:p:1-20
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