INFLUENCE OF KNOWLEDGE MANAGEMENT SYSTEM ON THE PERFORMANCE OF TELECOMMUNICATION FIRMS IN RIVERS STATE

Abstract

The key theory which may have contributed considerably towards the understanding of the importance of knowledge for firms is the Theory Based on Resources, also known as the Resource- Based Theory of the firm. The theory posits that resources are tradeable and non-specific to the firm, for instance, organizational processes. The theory is based on the following assumptions. Firstly, that resources and capabilities may be heterogeneously distributed across firms and these differences may be long lasting. Secondly, that economic factors (be they firms or people) are boundedly rational utility maximizers. Thirdly, that markets can vary in their competitiveness and that information can vary in how it is diffused across a market and so forth.
Unless knowledge management and core competencies can be synchronized, the organization will find it difficult to build long term survival and competitive advantage. It therefore follows that knowledge should be viewed as the most important resource for organizational profitability. This suffices that organizations should identify and develop their knowledge resources in order to strengthen and sustain their competitive edge