Knowledge-based management and the sustainability of firms

Abstract

Knowledge has been long considered a significant resource of business management. The organizations and firms can ensure their sustainable development only by effectively managing, harnessing and also creating their knowledge resources. Knowledge-based management theory developed by Nonaka explains and analyses the process of knowledge creation in a firm or an organization. The theory has been highly appreciated worldwide and proved to be an effective model for Asian countries. Many studies have shown the success application of this theory in Japanese firms and in firms of some other Asian countries. The success of those firms rooted from the ability to enable the spiral of knowledge creation, and by this flow, the firms can ensure its sustainable development. This paper's objective is to provide an insight into the link between knowledge-based management and the sustainable development of firms by analysing the success of some Japanese as well as Vietnamese companies. The paper found that, knowledge-based management is a good way for firms and organizations to enhance their positions in the competitive markets and to ensure their sustainable development in the future.