Contributions of Knowledge Management to Firm Competitiveness from a Complexity Approach

In modern times, Knowledge Management (KM) is seen to be a key instrument in developing organizational competitiveness, especially in the context of dynamic organizations, such as knowledge-based firms. In this paper, we assume that firms are capable of developing dynamic functionality through their own initiative; this means that they are able to change and adapt, becoming agile to their surrounding environment. We propose that an approach from complexity theory may explain the phenomena that arises in an organization as it faces turbulent environments for competence. We introduce the importance of complexity approaches to knowledge management. The key questions addressed in this paper are: (1) How is KM managed through complexity theory, ensuring competitiveness is increased? and (2) How does the approach to complexity theory increase the understanding of competitiveness? This research analyses KM tools to implement management systems, based on knowledge and complexity theory. Although competitiveness is perceived as vital for organizations, the approximation of knowledge and complex theory are not yet fully developed and integrated into organizational processes to increase it.