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The Sources Of A Firm’S Competitive Advantage According To The Knowledge-Based School: The Case Of Slovenian Firms

In: People, Knowledge And Technology What Have We Learnt So Far?

Author

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  • TOMAŽ ČATER

    (Faculty of Economics, University of Ljubljana, Kardeljeva ploščad 17, Ljubljana 1000, Slovenia)

Abstract

A basic characteristic of the knowledge-based school is that it follows the “inside out” approach of explaining the sources of a firm’s competitive advantage. There are at least two important classifications of knowledge in the literature. The first one divides knowledge into its explicit and tacit component, while the second one discusses human and structural capital. Besides knowledge, its adequate management is also necessary to ensure greater competitiveness and performance. Empirical research based on a sample of 225 Slovenian firms shows that the firms see the most relevant sources of their competitive advantage in structural capital, tacit knowledge and the imperfect imitability of knowledge. The more relevant knowledge a firm possesses and the better its management is, the better the firm’s performance and competitiveness, which means our empirical support of the knowledge-based school is quite clear. Among the studied firms, knowledge-related sources of competitive advantage, performing the knowledge management tasks and the imperfect imitability of knowledge, seem to be the most relevant factors of a firm’s competitiveness and performance.

Suggested Citation

  • Tomaž Čater, 2004. "The Sources Of A Firm’S Competitive Advantage According To The Knowledge-Based School: The Case Of Slovenian Firms," World Scientific Book Chapters, in: Bruno Trezzini & Patrick Lambe & Suliman Hawamdeh (ed.), People, Knowledge And Technology What Have We Learnt So Far?, chapter 24, pages 259-269, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789812702081_0024
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