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International Journal of Arts & Sciences,
CD-ROM. ISSN: 1944-6934 :: 08(02):295–302 (2015)
KNOWLEDGE MANAGEMENT AND TECHNOLOGICAL
DEVELOPMENT OF THE ENTERPRISE
Piotr KuraĞ, Małgorzata KuraĞ and Tomasz Lis
Czestochowa University of Technology, Poland
In accordance with the assumptions of the research-based view, predominating in strategic management
nowadays, knowledge is one of the basic strategic resources. As such there are recognized the resources
which possess appropriate potential on the basis of which the enterprise can build its competitive
advantage. Not every kind of knowledge fulfills these criteria, e.g. explicit knowledge. Tacit knowledge
is of another type. The knowledge, which is difficult to codify, connected with specific people, who
operate in the specific environment, can help to obtain and maintain sustainable competitive advantage.
The knowledge on how it is possible to use and combine the possessed resources in the production
process is specified with the term “technique”. The observations of enterprises on the market allow to
formulate the thesis that possessing appropriate techniques by the enterprise may amount to an increase
in the enterprise ability to compete. Skillful use of technique can become one of the core competencies
of the enterprise.
Competitiveness of the enterprise can be built around the improvement of the process of development
of a new product. Product innovation allows the enterprise to use “the bonus for innovation”. While
offering the product which stands out or has unique characteristics, or satisfies clients’ needs better on
the market, the enterprises has an opportunity to achieve the desirable competitive position.
In the paper, there has been made an attempt to integrate three areas: knowledge, technique and the
process of development of a new product and, particularly, to present the ties between organizational
knowledge and technical development of the enterprise.
Keywords: Knowledge, Knowledge management, Resources, Competitiveness, Competitive position.
Introduction
The capability of the enterprise to compete is a derivative of the resources possessed by the enterprise and
the ability to use them effectively. In the area of tangible assets, achieving any competitive advantage,
with respect to quality, cost, time (time-based), becomes increasingly difficult. Rapid spread and
dissemination of the latest concepts of management is responsible for that. In the subject literature, there
is often formulated the thesis that the real sources of competitive advantage ought to be sought in
intangible assets. Such assets should include knowledge.
Generally, knowledge can be divided into explicit knowledge and tacit knowledge. Explicit
knowledge is relatively easy to codify and, at the same time, to gain, store and spread in an organization.
Simultaneously, it does not fulfill the condition of a strategic resource, i.e. the one which enables the
295
296 Knowledge Management and Technological Development of the Enterprise
achievement and maintenance of sustainable competitive advantage. On the other hand, this condition is
met by tacit knowledge. It is the knowledge which is associated with certain people operating in a certain,
specific environment. Such knowledge may be effectively used only in a specific enterprise. An attempt
to codify and transfer it into the area of other organizations frequently brings about unsatisfactory effect
or it is even impossible.
The knowledge on the opportunities of using and the ways of combining resources in the production
process is called technology. The enterprise can make technology an instrument which is essential for
building competitive advantage. The observations of the behavior of enterprises on the market allows for
the conclusion that possessing appropriate technologies may amount to increasing the competitiveness of
the enterprise and, consequently, improve its competitive position. The skillful use of technology may
become one of the core competencies of the enterprise. In that case it becomes necessary to ”inscribe” the
technical and technological strategy into the overall strategy of the enterprise development.
The main objective of the paper is an attempt to present the ties between organizational knowledge
and technological development of the enterprise. The paper is theoretical in nature, there has been used
the literature available to the authors in the field of the discussed issues.
Knowledge as the source of competitive advantage of the enterprise
For the enterprise, the competition means rivalry for the sources of supply, means of production, human
capital and markets. The higher the effectiveness of these operations, the higher the ability of the
enterprise to compete. This ability is known as competitiveness. It is often understood as the ability to
achieve or maintain competitive advantage. In this sense, it can be interpreted as a synonym of the
competitive ability of the enterprise [Gorynia, 2010].
Competitiveness may be regarded in three dimensions. These are competitive potential, competitive
strategy and competitive position of the enterprise. Competitive potential consists of the whole of
resources essential for the operating and competing of the enterprise [Stankiewicz, 2005, p. 93]. It is the
basis for building the advantage over business rivals. On the other hand, competitive strategy is the
integrated and coordinated set of actions taken in the framework of the enterprise to achieve the
advantage on the market [Johnson, Scholes, Whittington, 2007]. The result of the competition is
competitive position. It is defined by means of analyses and comparisons with the results of other
enterprises in the sector. Occupying the competitive position, which is more favorable than the business
rivals’, is identified with having competitive advantage over them [Dzikowska, Gorynia, 2012].
In the subject literature, the enterprise is regarded, among others, as a set of resources and
capabilities creating the power and distinguishing it from other entities [Obłój, 2007; Krupski, 2006]. The
kind and nature of these resources provide the enterprise with the appropriate potential to build desirable
competitive position. However, it is not sufficient. Apart from that, the enterprise should possess some
specific distinctive competences. These ought to be understood as the capabilities of the enterprise to use
all the controlled resources in a more efficient way than competitors. The enterprise should also have the
ability to learn. This, most of all, should concern the coordination of different production skills and
integrating techniques [Prahalad, Hamel, 1990]. They are frequently defined as core competences.
Due to a wide conceptual range of the “resource” category, it was considered necessary to approach
its essence. B. Wernerfelt [1984] named the resources everything which may be regarded as a strength or
weakness of a specific enterprise and divided them into tangible and intangible. Tangible resources, most
of all, include: capital, real estate, machinery, tools, materials and raw materials. Intangible assets are:
employees along with their qualifications and abilities, motivation, reputation, relationships, attitudes,
brand of the company, organizational culture etc. Nowadays, such an approach is commonly accepted. In
Piotr Kura´
s, Małgorzata Kura´
s and Tomasz Lis 297
Polish literature, e.g. such a division is applied, among others, by G. Gierszewska and M. Romanowska
[2003], M.J. Stankiewicz [2005, p. 105] J.B. Barney [1991] suggested the approach to the resources in
terms of the opportunity to create and introduce the strategy improving the effectiveness of the
functioning of the enterprise. He distinguished physical, financial, human and organizational resources
[Barney, 1997]. In the synthetic approach, while following R. Krupski [2006], the resources are the
complex and diversified, in terms of many properties, set of material and non-material constituents,
controlled by the enterprise.
In the subject literature, essential strategic resources include knowledge. Its significance, as an
essential factor affecting the economic processes, was already noticed by A. Marshall, the creator of the
neoclassical theory and F. Hayek and A. Schumpeter, who claimed that knowledge is of a unique nature
and it cannot be acknowledged as once established. According to F. Hayek, the benefits from the
possessed knowledge change depending on circumstances. On the other hand, A. Schumpeter was
convinced that innovation is the result of the new configuration of the existing knowledge [Nonaka,
Takeuchi, 2000]. An explosion of interest in knowledge as the resource of the enterprise occurred with the
arrival of new economy, which A. Toffler defined as “the third wave”. Since now, knowledge is to be the
driving force of the modern economy. P. Druker [1999] even claimed that knowledge becomes the only
economic resource. However, the most innovative seems to be the considerations of Japanese researchers,
the creators of the organizational knowledge creation theory. They claim that, so far, the focus of
attention was to acquire, increase and use the already existing knowledge. They think that real benefits
can be obtained only in case of the acquisition of the ability to create new organizational knowledge
[Nonaka, Takeuchi, 2000, p. 73].
Knowledge is a very complex concept and, therefore, difficult to define. It is often connected with
such terms as data and information. The difficulty in formulating an unambiguous definition of
knowledge results from the fact that, opposed to data and information, which have the quantitative and
formal dimension, knowledge is of the intuitive nature [M. KuraĞ, 2010]. G. Probst, S. Raub and K.
Romhardt [2002] allege that knowledge is the whole of information and skills used to solve problems
which, unlike data and information, is connected with a specific person. F. Krawiec [2003] underlines that
knowledge is fluent and, at the same time, formally structured. Due to its specific nature it is, therefore,
difficult to capture in words and complete and logical understanding .
To become the basis for competitive potential of the enterprise, knowledge must possess some
properties characteristic of the strategic resource. Achieving and maintaining sustainable competitive
advantage is conditioned by knowledge, which is valuable, diversified, rare, difficult to imitate and which
does not have substitutes [Barney, 1991].
The conditions of technical development of the enterprise
Technology, in the present paper, is understood as ”the field of human activity whose aim is, based on
knowledge (on scientific grounds), manufacturing goods and generating phenomena not occurring in
nature and transforming natural products”.1 On the other hand, it was assumed that technique is „the
method of transforming natural resources into goods, also the knowledge of this process”2 or, in a broader
sense, “the field of technology dealing with the development of the processes, the most favorable in
1
http://www.encyklopedia.pwn.pl/haslo/3985955/technika.html (accessed on 25.11.2014).
2
http://www.swo.pwn.pl/haslo.php?id=27153 (accessed on 25.11.2014).
298 Knowledge Management and Technological Development of the Enterprise
specific conditions, connected with manufacturing or processing raw materials, semi-finished products
and products”.3
The above definitions indicate the clear superiority of technology over technique. In the framework
of technologies there may occur different techniques. Technology, in the simplest terms, amounts to the
methods of manufacturing, the way of development of processes and use of equipment, tools and raw
materials. On the other hand, technique refers to the parameters of processes and parameters of the
operation of these tools.
Technique is of a great significance for the overall strategy of the company, though its impact is
multi-directional. For example, some techniques, e.g. the Internet development, bring about the
unification of consumers’ tastes. On the other hand, the global standardization has very serious
consequences for techniques applied by the enterprise. The best technical solutions spread very fast, while
setting new qualitative, functional and aesthetic standards [Ko mi!ski, 1999].
The spread of new advanced techniques significantly changes the shape and nature of competition. A
good example is an increasingly common use of CDA computer-aided design systems and CAM
computer-aided manufacturing systems by enterprises. The integration of CAD and CAM (also known as
CAD/CAM) allows to create CIM computer-integrated manufacturing system. These systems brought
about considerable shortening of the product life-cycle. Consequently, enterprises must take strategic
decisions in increasingly shorter time, in the conditions of less and less stable business environment.
Technique is most frequently identified with knowledge of the possibilities of using and
the ways of combining the possessed resources in the production process. Since possessing of
appropriate technologies may amount to the improvement in competitive position, they should be
treated as the element of the strategic resource. Skillful use of techniques may become one of the
core competences of the enterprise. In such a case, it often amounts to an increase in the ability
to introduce innovation [P. Kura, 2012].
Techniques are frequently used in the competitive fight as they enable the improvement in the
assortment of the company products. This takes place in a number of ways, among others, by
[Stonehouse, Hamill, Campbell, Purdie, 2001]:
giving new functions,
giving new attributes,
increasing reliability.
The advanced techniques enable creating the product of the unprecedented functions. Another effect
of using techniques may be giving the existing products new attributes and, consequently, the product
becomes more useful and universal. The result of acquiring competences in the field of the applied
techniques is sometimes product simplification, which often amounts to an increase in its reliability.
Above, there are presented the ties between techniques and the product. Analogically, it is also
possible to indicate the ties between technique and the production process. Using technique to improve
competitive position may result from shortening the time of the implementation of a new product,
improvement in the quality and cost reduction. The use of modern design systems amounts to
considerable shortening the time required to develop the concept of a new product to implement it into
production. An increase in the level of automation allows for the improvement in the product quality by
reducing the amount of errors occurring in the complex, recurrent processes. On the other hand, product
simplification, an increase in production volume and reliability of production processes enable cost
reduction [P. Kura, 2012].
3
http://encyklopedia.pwn.pl/haslo/3985964/technologia.html (accessed on 25.11.2014).
Piotr Kura´
s, Małgorzata Kura´
s and Tomasz Lis 299
Technique may be manifested in different forms. It may occur in the material and non-material form.
In case of some products (e.g. a cell phone, computer software), the applied techniques, on account of
their material nature, are, to some extent, available for competitors. Detailed studies on competitors’
products allow for the application of previously recognized solutions on the company’s own products.
However, real competitive advantage comes from techniques appearing in a non-material form. Then, the
product itself does not reveal, in any way, the techniques applied during its production since they are not
materialized in it. Techniques used to build competitive advantage may be additionally divided into
design techniques and techniques of manufacturing processes. In the first case, the enterprise possessing
competences in a specific field (e.g. electronic systems and software), may concentrate on introducing
products, based on common solutions, onto the market. Competitive advantage can also be built around
production processes. The implementation of unique production and organizational solutions may
significantly bring about an increase in competitiveness.
The ties between knowledge and the process of development of a new product in the aspect of
technological development of the enterprise
An essential role in the achievement of competitive advantage by the enterprise is, undoubtedly, played
by the product which it offers on the market. In the conditions of increasingly stronger competition, it is
more and more difficult to build sustainable competitive advantage without the ability to develop new
products. In the subject literature, this concept is interpreted differently, therefore, it was assumed that it
is necessary to refer to the definition, which was adopted for the purposes of the present considerations. It
was assumed, following M. Haffer, that a new product amounts to “every form of product, which is new
for the enterprise, created as a specific set of functional, psychological, social properties and
accompanying services and introduced onto the market by this enterprise to improve its competitive
position” [Haffer, 1998].
The issue of a new product is strictly connected with innovativeness and innovation. In a broad
sense, innovation amounts to all activities which are to lead a new product or manufacturing method to its
practical use. These actions include both the invention of the product or manufacturing method, as well as
the design and implementation of the new product into production. For some, innovation concerns only
new technological or technical solutions. For others, this term refers to all changes acknowledged as
innovation in relation to the previous state, however, these changes include not only technical changes,
but they refer to cultural and moral phenomena and they concern organizational and social improvements
in all the areas of social and even political life [M. KuraĞ, 2010, p. 77].
There are a lot models of the process of development of a new product, which results from the nature
of the process, the adopted approach, the extent of detailing etc. The characteristic feature of these models
is the fact that they consist of a certain number of sequential successive phases. In the present paper, it has
been assumed that these are four phases:
- creating the idea of a new product,
- development, assessment and selection of the concept of the product,
- development and testing,
- introducing the product onto the market.
The effect of the operations in the phase of generating the product should be possibly a lot of
attractive ideas for the realization of a new product. The new product must have such attributes which
would guarantee a high probability of its success on the market and, at the same time, would enable its
introduction onto the market by this enterprise.
300 Knowledge Management and Technological Development of the Enterprise
Another phase includes the analysis of the selected concepts, the result of which is their assessment
and selection with reference to the possibilities of technological manufacturing of such products by the
enterprise. Consequently, one or a few ideas, promising the opportunities for success, are selected.
The phase of technological development of the product includes the design and creation of the
prototype of a new product and subjecting it to appropriate tests, aiming at checking its practical
operation in the laboratory and real conditions. The prototype developed in this way is manufactured on a
limited scale and introduced onto a specific market as the first sample batch of the new product. This
allows to conduct market tests.
The introduction of a product onto the market constitutes the last phase of the process of
development of a new product. It is a critical phase since there is as much as 30% risk of failure at this
stage. This means that the enterprise has only one chance of occurring on the market with the developed
product in three attempts made [Beard, Easingwood, 1996]. The efficient implementation of a new
product onto the market can be affected by the decisions taken in the field of: the moment, range and
intensity of the introduction of a new product onto the market [Mruk, 1999].
The characteristic feature of enterprises is the fact that they constantly supply their products onto the
market. Due to the product life-cycle, from time to time, the enterprise must renew their products
partially, entirely or develop them entirely from the very beginning. The process of development of such
a product has such a property that some phases repeat and appear in a specific sequence, irrespective of
the nature and the essence of the product itself. Such a process itself may become, for the enterprise, the
element on the basis of which it will attempt to build its competitive advantage. The efficiency of the
realization of the whole process is not, however, the condition sufficient to achieve success. The result of
such a process, apart from a new product, should be the created “value added” in the form of new skills
and experience, whose acquisition was enabled by the development of this process.
In the course of realization of the process of development of a new product, new organizational
knowledge is created [Nonaka, Takeuchi, 2000, p. 276]. New knowledge, especially so called tacit
knowledge, may be treated by the enterprise as the strategic resource, i.e. the resource on the basis of
which it is possible to build sustainable competitive advantage. However, not every type of knowledge
has such a potential. It is possessed by tacit knowledge (unlike explicit knowledge), which is difficult to
codify, which occurs into a specific organizational context and is the result of the accumulation of
experience, standards and organizational practices. The more valuable knowledge is for the enterprise the
less its mobility is, the rarer it is and the more difficult it is to imitate and substitute [Godziszewski, 2006,
p. 14].
However, it should be underlined that possessing even the most valuable knowledge itself does not
provide the enterprise with competitive advantage. Strategic value of knowledge is assessed by means of
the effects occurring as a result of its exploration. The enterprise must possess the ability of its utilitarian
use [Sta czyk-Hugiet, 2007]. The abilities and creativity in the use of organizational knowledge resources
allows to build sustainable competitive advantage. Competitive advantage based on the resources of
knowledge is more sustainable than the one based on products and markets [Kogut, 1992].
Conclusions
In the paper, the authors have made an attempt to show the ties between organizational knowledge,
technological development of the enterprise and its competitive position. It was assumed that, to achieve
success on the market, the enterprise must possess so called strategic resources, which must be
understood as the resources which have the potential to build sustainable competitive advantage.
Undoubtedly, knowledge possesses such potential, especially tacit knowledge. Since it is difficult to
Piotr Kura´
s, Małgorzata Kura´
s and Tomasz Lis 301
codify and, consequently, difficult to acquire, gather and distribute further, for a long time, it may
constitute an essential asset of the enterprise, distinguishing it from the competitors and allowing for an
increase in competitiveness. However, it should be underlined that possessing even the most valuable
knowledge itself does not guarantee the success to the enterprise. Even more important is the ability of its
utilitarian use.
The ties between knowledge and techniques, which determine the technical development of the
enterprise, are clear. Techniques are defined as knowledge on the methods and the process of
manufacturing natural resources into goods. The more unique the knowledge is the more unique
techniques the enterprise can dispose of. In this context, technique amounts to the strategic resource
which makes it possible to become the central element on the basis of which the overall strategy of the
enterprise will be built. In this case, it is necessary to build the technological strategy in the overall
strategy of the enterprise.
The emergence of new techniques is frequently promoted by the realization of the process of
development of a new product. That is when new organizational knowledge comes into being. It is of a
unique nature since it occurs in the specific organizational environment, results from the experience of the
specific people, who possess specific skills and who operate in accordance with specified standards and
practices. If newly created knowledge is valuable, rare, difficult to obtain on the market, has no
substitutes and is difficult to imitate, it provides the perfect basis for new techniques. On the other hand,
new techniques amount to high competitive potential of the enterprises, which may amount to its
favorable competitive position and, consequently, gaining competitive advantage over competitors.
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